Speciality Rest.

Speciality Restaurants reported robust financial performance for Q4 FY26, with revenues growing by 13.65% year-on-year. Profit After Tax (PAT) saw a significant increase of 44.20% compared to the previous year. The company maintained its consistent profitability streak for 19 consecutive quarters. Gross margins improved from 69.1% to 70.4%, reflecting operational efficiencies despite prevailing inflationary trends. Same-store sales growth (SSG) for Q4 stood at 2.25%, with a notable acceleration to 11.57% in April 2026.

The company plans an aggressive expansion in FY27, targeting the launch of 32 new outlets, comprising 8 new restaurants, 15 Walters, and 10 Sweet Bengals. This expansion is projected to increase the total touch points to 150 by the end of the current financial year. Management aims to scale flagship brands like Mainland China and Asia Kitchen to 50 restaurants over the next five years. The premium Asian dining brand, Gong, recently launched in Bandra, Mumbai, with further openings planned for Pune City and Vasant Kunj, Delhi, in the coming months.

Amidst significant headwinds from rising input costs, fuel prices, and geopolitical uncertainties, the company has focused on operational efficiencies. Gross margins improved from 69.1% to 70.4%, aided by these efforts. A cautious 4% price hike was implemented to avoid burdening customers in the discretionary spending segment. Proactive measures were taken to manage fuel supply risks, including the import of wok-based induction systems, with 78% of the restaurant chain already converted to electric induction, aiming for 100% conversion within 20 days.

Speciality Restaurants has established a digital QSR brand, Haka, which operates as a delivery-first model. This brand, along with Oh! Calcutta cloud kitchens, is integrated into existing Mainland China kitchens, leveraging large kitchen assets for optimized utilization. The company's strategy involves utilizing its 35 years of experience in Asian cuisine to cater to various price points and segments, from premium dining (Gong) to casual fun dining (Asia Kitchen) and digital QSR (Haka).

The company maintains a debt-free status and reported cash and equivalents (treasury investments) of INR 162.48 crores as of March 31, 2026, with net cash at INR 103 crores. Planned capital expenditure for FY27 is INR 40 crores, with approximately INR 37 crores allocated for new store expansions (32 new outlets) and the remainder for renovations. An investment of INR 1.12 crores has already been made in induction woks. While a share buyback was suggested by an analyst, management indicated it would be a board-level decision for future consideration.