Speciality Restaurants Ltd (NSE: SPECIALITY) Q3 2026 Earnings Call dated Feb. 11, 2026
Corporate Participants:
Ashutosh — Investor relations
Anjan Chatterjee — Chairman and Managing Director
Rajesh Kumar Mohta — Executive Director – Finance and Chief Financial Officer
Analysts:
Prakash Kapadia — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Q3FY26 earnings conference call of Specialty Restaurant Limited hosted by ICIC Securities Limited. As a reminder, all participant lines will be the listen only mode and there will be an opportunity for you to ask questions after presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on attached in phone. Please note that this conference is being recorded. I would now hand the conference over to Mr. Ashutosh from ICIC Securities Limited. Thank you. And over to you sir.
Ashutosh — Investor relations
Yes, thank you. Hello and good afternoon everyone present on the call. I on behalf of ICIC securities welcome you on Specialty Restaurants Limited Q3 FY26 earnings call. I would like to thank the management to give this opportunity of hosting the call from the management. We have with us Mr. Anjan Chatterjee, CMD Mr. Avik Chatterjee, Whole Time Director and Mr. Rajesh Kumar Mota, Executive Director, Finance and CFO. I now hand the call over to the management for their opening remarks post which we will open the floor for Q and A. Thank you.
Anjan Chatterjee — Chairman and Managing Director
very good evening to everyone present here and thank you for your time. I’m very happy to tell everybody around and people who have trusted us for a long time that this has been a quarter which is remarkable in terms of the revenues. We’ve clocked highest revenues this particular quarter and also in terms of profitability but for a caveat which is the gratuity adjustment or the provision for gratuity which we have to do as per the government of India’s new law, as all of you understand. But we are very bullish. We are extremely happy with the way things are going and details of the snapshot. Although you know, most of the things which have been printed and are in public domain. But I would like Mr. Mota, our CFO to give a little snapshot of the financials.
Rajesh Kumar Mohta — Executive Director – Finance and Chief Financial Officer
Mr. Mota. Good evening participants. This is Rajesh Mota CF of the company. In order to highlight the quarter numbers, we are happy to share that the revenues of the company has grown on a standalone basis by 9% and the EBITDA margin improved to 12.75% from 11.85% on last year. On an operational basis, if you look at EBITDA Post India, it is 24.89% during the quarter against 23.43% of the previous year. SSG had been very stable for us which was negative last year. But we have been able to maintain similar number at this point of time. It has Been very steady rather than a growth considering the businesses which we have seen in quarter three of FY26. Most importantly, if I may say so, the gross margins for the company have improved to 70.8% from 69.3% of the last year. This is primarily because of managing efficiencies and increase in revenues of the oriental brands for the company. Thank you. We now can have question answer session.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press Star in one on the touchdown telephone. If you wish to remove yourself from question queue, you may place Star in two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we wait for a moment while the question queue assembles. The first question is from the line of Prakash Kapadia from Kapadia Financial Services. Please go ahead.
Prakash Kapadia
Yeah, thanks for the opportunity. Couple of questions from my end. What kind of a restaurant addition are we looking at in FY27 and what kind of a capex should that lead to? Secondly, how large is you know Pune and Bangalore from our revenue perspective? Because you know it seems to be doing mixed and AI and you know job losses are for real. So what impact does it have if any on our revenues, you know, going forward? And lastly, you know last two, three days there have been lot of this thing on the media on the service charge issue. We just come back and you know government is saying it’s not compulsory, companies can’t charge it. So any thoughts on that? Those are my questions. Thank you.
Rajesh Kumar Mohta
Mr. Prakash, in order to answer your first question on the plan for the financial year, we have a history of opening around.
Prakash Kapadia
Hello, I lost the voice.
operator
Management line got disconnected and wait until we connect to the management. We have connected with the management. Yes, go ahead please.
Rajesh Kumar Mohta
Sorry gentlemen, the call dropped at our end. Mr. Prakash, we expect to open around eight to 10 restaurants which have been the history when we were doing big businesses earlier. So this year also we planned that we would be able to open 8 to 2, 8 to 10 new restaurants with Walters in the range of around 3 to 5 restaurants in the next year as a QSR category which is on the growth path for us.
Prakash Kapadia
Okay, and what kind of a capex should that translate to? That is not a very capex heavy business I would guess.
Rajesh Kumar Mohta
Absolutely. We looks like what the cash generated by the business would be utilized for the capital expenditure.
Prakash Kapadia
Okay. Okay. And any thoughts on the other questions? Rajesh?
Anjan Chatterjee
Yeah, I’ll take the. This is about the question which is very important. And a pertinent one. This is Anjan Chatterjee. This is about the impact of any IT, job losses, etc. Etc. Our presence in Bangalore is not so much as in Calcutta Bombay. Now we are restarting Delhi all over again because of the pandemic. As you know, around 32 restaurants were shut and we’d gone. And we decided that we’ll consolidate Bombay and Calcutta, primarily Bombay. So you know, the number of stores which have opened in the city of Bombay are the max. Pune, we are there.
But the impact etc will not be so much because we are in a corporate and residential area. So there’s a huge traffic which comes in from the residents. And also there is some kind of IT coming in and out. But we’ve not seen any kind of an impact as yet because as you know the history of mainland China and all the associate brands like Asia kitchen, etc. Which is in Wakar, Phoenix or we are in Amanora, there is a different kind of an audience which comes to the Asia Kitchen mainland China kind of a genre. So I don’t think it is so it dependent.
Prakash Kapadia
Okay, okay. So you’re saying it would get offset given our location and you know, the area. So not too much of a worry.
Anjan Chatterjee
Thank you.
operator
Thank you. A reminder to all the participants, you may press Star in one to ask question. Participants may press the RN one to ask questions. The next question is from the line of Ashutosh from ICIC securities. Please go ahead, sir. Yes, Ashutosh , go with the question please.
Ashutosh
Yeah, hello, am I audible?
operator
Yes, sir.
Ashutosh
Yeah. So sir, my question is on the quality of the growth. So would be great if we can just split like how has been the same store sales growth, what was the expansion and how is the overall demand going on? And second thing is that I believe you have opened the Asia Kitchen thing in Chandigarh. So how is the traction in the. In these, you know, slightly non metros kind of cities?
Anjan Chatterjee
Yeah, I’ll pick that question. Thank you for your question. This is about the fact that we have been working as you know, that metros primarily are very good traction oriented, as you know. But then, you know, I would not consider Chandigarh as a mini metro because the kind of audiences, because we were there in Chandigarh pre pandemic, we had to shut it. And we were doing exceptionally well there in sector 26. But we found that the mainland China should not be started. So we started Asia Kitchen by mainland China in a mall called Elante and which is basically owned by Blackstone.
And though it’s a space which is only 2,000 square feet because we are optimizing the space these days. Smaller the place, less the staff, lesser the Capex. So frankly speaking, you’ll be very happy to know that it’s been very, very encouraging right in the beginning as per the store matrix and it’s building up, it’s too early to get in. And since people have already been introduced to the mainland China cuisine which continues to be the largest Chinese brand in India. So they connect with the mainland China and they’re very happy that today it’s also for the new generation which is Danellians because it’s a casual bistro like model. So that’s been very encouraging.
Ashutosh
Sure, sure, sir. And next question is on this Zomato Swiggy thing. I know it may not be very much relevant for your company but still like we are seeing that in quick service restaurant the delivery thing is picking up very strongly. So I understand that no, your portfolio is mainly into the fine dining kind of thing. But still like is there any shift or some pickup happening on the delivery side which was not seen earlier or some. Some. Any kind of trend if it is there would be useful.
Anjan Chatterjee
Very interesting question. And you know, frankly just tell you the historicals that when we. We were primarily only fine fine dining, fine casual dine in pandemic actually brought us to deliveries. We were only takeaways and partial deliveries here and there. Those as you know that this phenomenon actually the OTT watching, binge watching and the deliveries have grown as a habit. As a habit the social fabric has changed that people have started ordering in because of traffic because of the habit which happened during pandemic. And it has grown for us it used to be around 5, 6%.
It’s grown to 24%. Fortunately we are not so dependent on the levels of the delivery. We are not delivery oriented. In spite of that. The fact that our average order value AOV has been very good because of the kind of brands we have. The revenue that Srigi and Zomato obviously they earn it on the percentage as you know. So we’ve been able to have a great relationship with them. Anyway. It’s also a business like thing that higher is the AOV average order value controlled is the. It can’t be a flat like 22%, 24% but average.
We brought them to a figure which is based on AOVA which has been done last year very successfully by Avik. In fact he’s the one who actually drives that vertical also my son and we’ve Been able to control that, but very rightly told by you that we are not dependent on delivery so much, but we continue to have a balance and we are working very hard to bring in people by having a CRM. Now again, we have the first CRM. We are getting into CRM. We are giving offers to the customer directly. We’re giving redemption coupons to make them come out of the house.
We’re doing a new, you know, bonanza, like a Monday bonanza because Monday, Tuesday, you know, are the worst days during the week. So we are doing many more things to bring people in, into our dine in areas.
Ashutosh
Okay, understood. And so one last question on the international operations. So any quick update on the London and Dubai operations? Is it EBITDA positive and what are the future plans of the company in the international markets?
Anjan Chatterjee
As you know that in Dubai we have a master franchise understanding with a company called Resolute. And it is, you know, it’s based on a minimum revenue that, you know, minimum profitability that they give it to us around 6% of the total turnover or a percentage in terms of the value which comes in. And there’s a minimum threshold they pay us. So there have been more of Emirates then now there are city centers going to be opening in March. Then we have another called even Battuta. Muscat is already operating. And then we have an Abu Dhabi.
So since we have that arrangement, there’s no capex which is required. And it’s just that our management, our, you know, menu re engineering and chefs flying in as and when required, obviously at their cost. So it’s a master franchise understanding. And now you’ll be happy to know that very soon we are looking at Saudi and expanding in UAE aggressively.
Ashutosh
Okay. Okay. Thank you, sir. Thank you, sir. That’s all from my side. Thank you.
Anjan Chatterjee
Thank you. Thank you.
operator
Thank you. A reminder to all the participants. You may press star and one to ask question. Participants may press saran1 to ask questions.
Anjan Chatterjee
I don’t think there is any other participant that given. Will you check, check with the gentleman who’s coordinating.
operator
Yes, sir.
Anjan Chatterjee
There’s no one, right?
operator
No, sir. There’s no one.
Anjan Chatterjee
Okay, wonderful. So we can tell Mr. Anshu. Yeah, Ashutosh, is he on the call?
Ashutosh
Yes, sir. Yeah, yeah. Yes, sir.
Anjan Chatterjee
Doesn’t look like anybody else is on the call, right?
Ashutosh
I think there are no questions, sir.
Anjan Chatterjee
Yeah, fair enough. It’s perfectly in order then should we call it a day and end it?
Ashutosh
Yes, I like if you want to give any closing remarks and post that muskaan can end the call.
Rajesh Kumar Mohta
Hello, this is Rajesh Mota. We are extremely thankful for sparing your time and participating in the investors call of the company for the Q3 for FY26 financial year. And we look forward for having again investors call post the last quarter of the financial year. Thank you.
Anjan Chatterjee
Thank you very much.
operator
Thank you. On behalf of ICIC securities limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.