Speciality Restaurants Q1 profit jumps 29.9%; Avik Chatterjee takes over as CEO

Shares of Speciality Restaurants rose as much as 3.21% intraday on Wednesday, a day after the company reported its Q1FY27 results, as investors responded to stronger revenue growth, higher operating profitability and a leadership transition at the restaurant chain.

The stock touched an intraday high of ₹163.70, against its previous close of ₹158.60, before paring gains. The company’s Q1 performance showed continued momentum across its restaurant and confectionery portfolio, while its newer QSR brand Walters emerged as a notable growth driver.

Revenue, profitability improve

On a consolidated basis, revenue from operations rose 16.8% year-on-year to ₹127.03 crore, compared with ₹108.77 crore in the year-ago quarter. EBITDA increased 36.4% to ₹24.34 crore, from ₹17.85 crore, taking the EBITDA margin to 19.16% from 16.41%.

Net profit stood at around ₹7 crore, up 29.87% year-on-year from ₹5 crore, according to the company's earnings calculations.

The company also reported 11.35% same-store sales growth across its restaurants and confectioneries, pointing to stronger demand from its existing outlet base.

Chairman and managing director Anjanmoy Chatterjee said the quarter marked a strong start to FY27, with profit growth outpacing revenue growth.

“The fact that our profit growth has significantly outpaced revenue growth is particularly encouraging and reflects the progress we are making in improving operating efficiency and profitability.”

He added that the company would remain focused on improving productivity, enhancing customer experience, maintaining cost discipline and pursuing calibrated expansion.

Avik Chatterjee takes charge as CEO

The quarter also marked a big leadership transition, with Avik Chatterjee taking charge as chief executive officer. He has spent much of his career at Speciality Restaurants and has been involved in building and scaling several of its brands.

Outlining his priorities, Avik said the company would focus on strengthening existing brands, expanding into the right markets and developing new concepts aligned with changing consumer preferences.

“My priorities will be to strengthen our existing brands, expand into the right markets and create new concepts that respond to evolving customer preferences.”

Walters emerges as new growth engine

One of the biggest highlights was Walters, the QSR format launched about a year ago. Revenue from the brand jumped 345% to ₹1.56 crore in Q1FY27 from ₹35 lakh a year earlier. Its contribution to consolidated revenue increased to 1.3% from 0.3%.

The company plans to add 12-15 Walters stores in Mumbai over the next three quarters, alongside a cloud kitchen to expand its delivery reach.

“Walters is a good example of what that looks like in practice,” Avik said, describing the brand as a “genuine growth story” within the portfolio.