Speciality Restaurants Ltd. (SPECIALITY) AI Stock Analysis

• Market Cap: ₹5.03B
• Dividend Yield: 0.87%
• Average Volume (3M): 4.42K
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.90
• Revenue Growth: 6.66%
• EPS Growth: -21.40%
• Country: IN
• Employees: 2,305
• Sector: Services
• Sector Strength: N/A
• Industry: Restaurants
• EPS (TTM): 0.96
• Shares Outstanding: 48,235,657
• 10 Day Avg. Volume: 2,562
• 30 Day Avg. Volume: 4,420
• PEG Ratio: -1.14
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 1.51
• P/FCF Ratio: 18.14
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ₹107.00 ▼(-7.56% Downside)

The overall stock score of 56 reflects a combination of strong financial performance and operational efficiency, offset by bearish technical indicators and a relatively high valuation. The stock's oversold condition may present a buying opportunity, but the high P/E ratio and low dividend yield suggest caution. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Consistent Revenue Growth

Sustained top-line growth signals persistent customer demand and successful brand positioning in casual to premium dining. Over 2-6 months this supports capacity utilization, justifies selective outlet expansion or reinvestment, and underpins long-term revenue visibility beyond cyclical swings.

Strong Gross and Improved Operating Margins

High gross margins plus rising EBIT/EBITDA indicate durable pricing power and improving operational leverage. This suggests the company can absorb input cost volatility, sustain cash generation, and improve free cash flow conversion over multiple quarters, strengthening long-term profitability.

Healthy Balance Sheet and Manageable Leverage

A strong equity ratio and modest leverage provide resilience to demand shocks and flexibility for capital allocation. This financial headroom supports capex, refurbishments, or selective growth without undue refinancing risk, preserving balance sheet stability over the medium term.

Negative Factors

Declining Net Profit Margin

A meaningful fall in net margin indicates rising non-operating costs, taxation, or expense pressure that operational improvements haven’t offset. Persisting margin compression can erode retained earnings and limit reinvestment capacity, weighing on sustainable earnings power over coming quarters.

Weaker Return on Equity

Falling ROE signals reduced capital efficiency and lower returns to shareholders from existing asset base. If the trend persists, it suggests the firm is generating less profit per unit of equity, which can constrain investor returns and challenge management to improve asset allocation long-term.

Negative EPS Growth

A sharp decline in EPS undermines internal financing and diminishes per-share profitability available for reinvestment or shareholder distributions. Sustained negative EPS growth can limit strategic initiatives, reduce stakeholder confidence, and pressure long-term accrual earnings despite operational strengths.

Speciality Restaurants Ltd. Business Overview & Revenue Model

Company Description

Speciality Restaurants Limited owns and operates restaurant outlets and sweet shops in India. The company operates its restaurants under the Mainland China, Oh! Calcutta, Asia Kitchen by Mainland China, Sigree, Sigree Global Grill, Spicery by Sigree, Jungle Safari, Urban Deccan Pub, Hoppipola, Hay, Episode One, Gong Modern Asian, Sweet Bengal, Café Mezzuna, Flame & Grill, Haka, POH, Machaan, and Zoodles brand names; and confectionaries and cafes under the Sweet Bengal and Dariole brands, as well as bars under the Hay and Episode One brands. As of March 31, 2022, it operated 68 restaurants, including 17 franchise restaurants; and 11 cloud kitchens and 38 confectionaries. The company was founded in 1992 and is based in Mumbai, India.

How the Company Makes Money

Speciality Restaurants Ltd. generates revenue primarily through food and beverage sales at its dining establishments. The company operates multiple restaurant brands, each targeting different market segments and dining experiences, which helps diversify its revenue streams. Additionally, Speciality has ventured into cloud kitchens, allowing it to expand its reach and cater to the growing demand for food delivery services. The company also engages in strategic partnerships with food delivery platforms to enhance its distribution capabilities. Seasonal promotions, catering services, and special events hosted at its venues further contribute to its earnings, allowing the company to capture a broader customer base and maximize profitability.

Speciality Restaurants Ltd. Financial Statement Overview

Summary

Speciality Restaurants Ltd. shows positive revenue growth and operational efficiency improvements, reflected in strong gross profit and EBIT margins. However, declining net profit margins and return on equity suggest pressure on net profitability. The balance sheet remains stable with healthy leverage ratios, and cash flow generation is strong, indicating good liquidity management.

Income Statement

Speciality Restaurants Ltd. has demonstrated consistent revenue growth, with a notable increase from 2024 to 2025. The gross profit margin remains strong at approximately 43.44% in 2025. However, the net profit margin has decreased to 4.98% in 2025 from 7.26% in 2024, indicating pressure on net profitability. Despite these challenges, EBIT and EBITDA margins have improved, reflecting operational efficiency gains.

Balance Sheet

The company maintains a healthy equity base, with an equity ratio of 60.67% in 2025. The debt-to-equity ratio stands at 0.47, suggesting manageable leverage. However, return on equity has declined to 6.64% in 2025 from 9.57% in 2024, indicating a decrease in profitability relative to shareholder equity.

Cash Flow

Free cash flow remains positive, with slight growth from the previous year. The operating cash flow to net income ratio is robust at 3.42 in 2025, showing strong cash generation relative to net income. However, free cash flow to net income ratio has decreased due to lower net profitability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.42B	4.36B	4.05B	3.75B	2.53B	1.50B
Gross Profit	1.84B	1.90B	1.76B	1.88B	1.35B	743.53M
EBITDA	783.23M	405.40M	908.17M	1.09B	560.19M	195.51M
Net Income	197.37M	217.20M	293.92M	967.90M	81.61M	-293.44M
Balance Sheet
Total Assets	0.00	5.39B	5.06B	4.74B	3.37B	3.32B
Cash, Cash Equivalents and Short-Term Investments	1.78B	1.78B	1.81B	1.71B	993.91M	717.80M
Total Debt	0.00	1.54B	1.39B	1.42B	1.39B	1.41B
Total Liabilities	-3.34B	2.05B	1.91B	1.97B	1.92B	1.97B
Stockholders Equity	3.34B	3.27B	3.07B	2.77B	1.45B	1.35B
Cash Flow
Free Cash Flow	0.00	363.40M	349.90M	703.30M	514.52M	173.31M
Operating Cash Flow	0.00	741.90M	630.90M	803.30M	539.65M	212.93M
Investing Cash Flow	0.00	-281.30M	-204.67M	-706.80M	-335.89M	-48.05M
Financing Cash Flow	0.00	-494.90M	-419.99M	-50.20M	-258.15M	-109.21M

Speciality Restaurants Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 115.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SPECIALITY, the sentiment is Negative. The current price of 115.75 is above the 20-day moving average (MA) of 108.37, above the 50-day MA of 113.89, and below the 200-day MA of 126.82, indicating a bearish trend. The MACD of -3.14 indicates Positive momentum. The RSI at 40.03 is Neutral, neither overbought nor oversold. The STOCH value of 39.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SPECIALITY.

Speciality Restaurants Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VHLTD	74 Outperform	₹9.17B	48.01	―	―	-11.23%	-65.46%
ADVANIHOTR	72 Outperform	₹5.24B	22.20	―	3.31%	0.14%	7.90%
ASIANHOTNR	66 Neutral	₹5.91B	3.15	―	―	8.18%	―
KAMATHOTEL	60 Neutral	₹6.46B	17.33	―	―	9.52%	-39.66%
SPECIALITY	56 Neutral	₹5.03B	23.39	―	0.87%	6.66%	-21.40%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SBGLP	46 Neutral	₹6.06B	29.98	―	0.27%	37.56%	77.10%

Speciality Restaurants Ltd. Corporate Events

Speciality Restaurants Closes Trading Window Ahead of Q3 FY26 Results

Speciality Restaurants Limited has announced that its trading window will be closed for all designated persons and their immediate relatives from 1 January 2026 until 48 hours after the company discloses its unaudited financial results for the quarter and nine months ended 31 December 2025, in line with SEBI’s Prohibition of Insider Trading Regulations and its own internal code of conduct. The move, routinely adopted ahead of financial results, underscores the company’s compliance with disclosure and insider trading norms, and signals that the board meeting date for approving these unaudited results will be communicated separately, with the disclosure also being made available on the company’s website for investors and other stakeholders.

Speciality Restaurants Expands with New Franchise in Dubai

Speciality Restaurants Limited has announced a new franchise agreement with Asia Kitchen By Mainland China LLC to open a restaurant under the ‘Asia Kitchen by Mainland China’ brand in Dubai, UAE. This expansion into the UAE market is a strategic move that could enhance the company’s international presence and potentially increase its market share in the Middle Eastern dining sector.

Speciality Restaurants Limited Publishes Financial Results

Speciality Restaurants Limited, a company involved in the hospitality sector, has announced the publication of its standalone and consolidated unaudited financial results for the quarter and half year ended September 30, 2025. This announcement, made through newspaper clippings in Financial Express and Aajkaal, Kolkata, highlights the company’s financial transparency and commitment to keeping stakeholders informed about its financial performance.