Speciality Rest. Q1 FY27 Results (NSE: SPECIALITY)
Signal: Growth reaccelerated
The read
The trajectory is improving: Q1FY27 consolidated revenue growth accelerated to 16.8% YoY from 5.5% in Q1FY26, while EBITDA grew 21.3% and PAT 31.7%; 11.35% same-store sales growth confirms the recovery is being driven by existing outlets, with Walters providing an early but still small growth option at ₹1.56 crore of revenue, up 345%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹127.03 Cr | 16.8% | N/A |
| EBIT | ₹13.16 Cr | 29.0% | |
| Net profit | ₹7.11 Cr | 31.7% | |
| EPS | ₹1.45 | 36.8% | |
| EBIT margin | 22.5% |
P&L walk
Consolidated revenue rose 16.8% YoY to ₹127.03 crore, EBITDA grew faster at 21.3% to ₹28.62 crore, EBIT increased 29.0% to ₹13.16 crore and PAT grew 31.7% to ₹7.11 crore; management attributes the profit outperformance to improving operating efficiency and cost discipline, but other income was 45.2% of PBT.
Key positives
- Consolidated revenue reached ₹127.03 crore, up 16.8% YoY, accelerating from 5.5% YoY in Q1FY26.
- Same-store sales growth was 11.35%, showing that established restaurants and confectioneries are generating organic demand independent of new-store additions.
- Consolidated EBITDA rose 21.3% YoY to ₹28.62 crore versus 16.8% revenue growth, while EBIT increased 29.0% to ₹13.16 crore.
- Walters revenue increased 345% YoY to ₹1.56 crore and its revenue contribution rose to 1.3% from 0.3%, providing an emerging QSR growth vector.
Key concerns
- Other income of ₹4.27 crore represented 45.2% of consolidated PBT of ₹9.45 crore, so the 31.7% PAT growth is not entirely operating in nature.
- The planned addition of 12 to 15 Walters stores over the next three quarters increases execution risk while the format currently contributes only 1.3% of consolidated revenue.
Earnings quality: includes non-operating other income
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