Speciality Restaurants Ltd. (SPECIALITY) AI Stock Analysis

• Market Cap: ₹4.77B
• Dividend Yield: 0.87%
• Average Volume (3M): 4.42K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.83
• Revenue Growth: 6.66%
• EPS Growth: -21.40%
• Country: IN
• Employees: 2,305
• Sector: Services
• Sector Strength: N/A
• Industry: Restaurants
• EPS (TTM): 1.76
• 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: ₹102.00 ▼(-11.88% Downside)
• Action: Reiterated Date: 11/13/25
• Date: Action: Reiterated 11/13/25

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 and strong gross margins

Speciality shows recurring revenue growth alongside a ~43.44% gross margin in 2025, indicating durable unit economics and pricing power in dining segments. These fundamentals support sustained cash generation and capacity to invest in brand building and outlet expansion over months.

Robust operating cash generation

Operating cash flow at 3.42x net income and positive free cash flow signal high cash conversion quality. This structural cash strength supports reinvestment in restaurants, debt service, and working capital without relying on external financing over the medium term.

Healthy balance sheet and manageable leverage

A strong equity base (60.67%) and modest D/E (~0.47) provide financial flexibility to weather cyclical slowdowns and fund selective expansion. Low leverage reduces refinancing risk and supports stable operations and capital allocation over coming quarters.

Negative Factors

Net profit margin erosion

Declining net margins (4.98% in 2025 vs 7.26% in 2024) show that cost pressures or non-operating items are eroding bottom-line conversion. Persisting margin compression would limit retained earnings, slow free cash flow growth, and constrain reinvestment or shareholder returns over the medium term.

Return on equity weakening

ROE falling to 6.64% from 9.57% indicates the company is generating lower returns on shareholder capital. If not addressed by higher margins or more productive deployments, this structural decline diminishes long-term shareholder value and may necessitate strategic changes.

Earnings per share contraction

Negative EPS growth despite revenue gains points to profitability headwinds such as rising operating costs, interest, or one-time items. Sustained EPS contraction reduces per-share earnings available for dividends or buybacks and signals weaker core profit generation over coming quarters.

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

The company primarily makes money by operating restaurants and earning revenue from the sale of food and beverages to diners (dine-in and, where applicable, event/banquet and other on-premise formats). Key revenue streams typically include (1) food sales (menu items), (2) beverage sales (alcoholic and non-alcoholic drinks, where licenses and formats permit), and (3) service-related receipts such as cover charges, venue/event bookings, and ancillary income tied to restaurant operations (e.g., catering or delivery where offered through its outlets). Earnings are driven by restaurant footfall, average spend per customer, menu engineering, pricing, and utilization of capacity (including peak-hour occupancy and event bookings), while profitability is influenced by food and beverage input costs, staff costs, rent/lease expenses, and operating leverage across the outlet network. Specific details on material partnerships, franchising, or non-core revenue lines are null.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	4.54B	4.36B	4.05B	3.75B	2.53B	1.50B
Gross Profit	2.06B	1.90B	1.76B	1.88B	1.35B	743.53M
EBITDA	823.77M	405.40M	908.17M	1.09B	560.19M	195.51M
Net Income	216.47M	217.20M	293.92M	967.90M	81.61M	-293.44M
Balance Sheet
Total Assets	5.40B	5.39B	5.06B	4.74B	3.37B	3.32B
Cash, Cash Equivalents and Short-Term Investments	1.85B	1.78B	1.81B	1.71B	993.91M	717.80M
Total Debt	1.45B	1.54B	1.39B	1.42B	1.39B	1.41B
Total Liabilities	1.99B	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	182.20M	363.40M	349.90M	703.30M	514.52M	173.31M
Operating Cash Flow	324.89M	741.90M	630.90M	803.30M	539.65M	212.93M
Investing Cash Flow	-34.09M	-281.30M	-204.67M	-706.80M	-335.89M	-48.05M
Financing Cash Flow	-294.35M	-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 100.45, above the 50-day MA of 105.18, and below the 200-day MA of 122.00, indicating a bearish trend. The MACD of -2.42 indicates Positive momentum. The RSI at 45.20 is Neutral, neither overbought nor oversold. The STOCH value of 33.19 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	₹9.46B	21.57	―	―	-11.23%	-65.46%
ADVANIHOTR	72 Outperform	₹4.79B	12.58	―	3.31%	0.14%	7.90%
ASIANHOTNR	66 Neutral	₹5.83B	-2.80	―	―	8.18%	―
KAMATHOTEL	61 Neutral	₹5.43B	10.10	―	―	9.52%	-39.66%
SPECIALITY	56 Neutral	₹4.77B	15.98	―	0.87%	6.66%	-21.40%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SBGLP	46 Neutral	₹4.50B	13.65	―	0.27%	37.56%	77.10%

Speciality Restaurants Ltd. Corporate Events

Speciality Restaurants announces special window for physical share transfer requests

Speciality Restaurants Ltd. has announced that it has published a newspaper advertisement regarding a special window for re-lodgement of transfer requests for physical shares. The notice, released in national and regional newspapers, is part of the company’s regulatory compliance under Indian listing norms and is intended to inform shareholders about the process and timeline for addressing pending or legacy physical share transfer issues.

By formally notifying investors through widely circulated publications and its website, the company aims to ensure that remaining holders of physical share certificates are aware of this limited opportunity to regularise transfers. This step may help clean up the share register, support smoother dematerialisation, and enhance overall transparency and compliance for stakeholders and market participants.

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.