Speciality Restaurants reported a healthy 52% jump in Q2 FY2027 net profit to Rs 6.81 crore, with revenue climbing to Rs 135.83 crore. However, the company faces a significant legal hurdle as the Enforcement Directorate has provisionally attached Rs 14.50 crore of its funds. The company is not an accused in the ongoing investigation but has challenged the attachment order in the Calcutta High Court.
Speciality Restaurants Reports Strong Q2 Growth Despite Regulatory Overhang
Profit rises to Rs 6.81 crore from Rs 4.47 crore; ED attaches Rs 14.50 crore in linked investigation.
Reader Takeaway: Revenue growth signals strong operational demand, yet the ongoing PMLA-linked legal dispute creates significant cash flow uncertainty.
What just happened
Speciality Restaurants Limited posted consolidated revenue of Rs 135.83 crore for the quarter ended September 30, 2026, marking a notable increase from Rs 116.44 crore in the same period last year. Profit after tax rose significantly to Rs 6.81 crore compared to Rs 4.47 crore a year ago. Alongside these financial results, the company disclosed a legal development involving an Enforcement Directorate (ED) Provisional Attachment Order (PAO) for Rs 14.50 crore.
Why this matters
While the financial results demonstrate growth in the company's core casual dining and confectionery businesses, the attachment of funds poses a liquidity concern. The funds in question relate to forfeited application money from a 2023-25 preferential warrant issue. The company maintains that it is not an accused party in the ED's investigation under the Prevention of Money Laundering Act (PMLA) involving certain investors.
What changes now
Speciality Restaurants has officially challenged the ED’s order by filing a Writ Petition (WPA 30396 of 2026) in the Calcutta High Court. Until the court reaches a verdict, the attached funds remain inaccessible, creating a regulatory overhang that may affect market sentiment despite the positive operational performance.
Risks to watch
Investors should monitor the Calcutta High Court proceedings closely. Any adverse order could impact the company's cash reserves. Furthermore, the company’s expansion into Dubai through 'Speciality Restaurants L.L.C-FZ' remains a key growth area, but management's ability to balance international scaling with legal defense will be critical.
What to track next
The primary focus remains the legal outcome regarding the Rs 14.50 crore attachment. Additionally, watch for any updates on the operational performance of the new Dubai subsidiary and continued revenue trends in the Indian dining segment.