Stock hits 5% upper circuit after securing exclusive franchise rights for Wing Zone in India

Synopsis: The shares of this small-cap stock was in the news today after it announced the obtaining of franchise rights for Wingzone, an international QSR brand. 

The shares of this company, which provides computer and outsourcing services in the information technology sector, which includes data, voice, or video collection and processing, and call center services, were in focus today after the press release of the company stating the securing of a license for Wingzone. 

With a market cap of Rs 3,694 crore, the shares of Spice Lounge Food Works Ltd reached a high of Rs 52.99 compared to its previous day’s closing price of Rs 50.47, hitting the 5% upper-circuit in today’s trading session. The shares have given a return of 4,429% since their listing in Jan 2021 and are trading at a PE of 522, whereas their industry PE is 130. 

About the securing of franchise rights and more. 

Spice Lounge Food Works has secured the exclusive master franchise rights for Wing Zone in India, giving it complete control over how the international QSR brand enters and grows in the country. This license allows the company to oversee everything from developing stores to managing operations and shaping nationwide expansion, making Spice Lounge the sole partner responsible for Wing Zone’s presence in India.

For Spice Lounge, this partnership is a major strategic step. Wing Zone is already well known internationally for its bold flavors and chicken-focused menu, and bringing this brand to India gives the company a strong global name to anchor its ambitions in the fast-growing QSR market. The launch will begin with the first outlet in Koramangala, Bangalore, followed by more locations across cities like Bangalore, Hyderabad, and Chennai as part of a planned multi-phase rollout.

By holding exclusive rights, Spice Lounge is in a powerful position to shape Wing Zone’s India journey from the ground up. The licence aligns perfectly with the company’s long-term goal of building a diverse, high-growth food service portfolio and strengthens its push to become a leading player in the country’s rapidly expanding QSR sector.

Wing Zone is an American fast-casual restaurant chain that has built its reputation on bold, flavour-packed chicken wings, tenders, burgers and its well-known range of signature sauces. Based in Las Vegas, the brand has grown steadily since its early days and now runs dozens of outlets in the US along with more than sixty locations across several international markets.

Now owned by Capriotti’s, Wing Zone has been expanding its global footprint at a strong pace. What really sets it apart is its “flavour-focused” identity and consistent product quality. which have helped it connect especially well with younger, urban customers in the quick-service space.

Commenting on the development, Mr Mohan Babu Karjela, Chairperson and Director of Spice Lounge Food Works Ltd, said:

“We are delighted to bring Wing Zone to India and believe this partnership marks an important milestone in our long-term growth strategy. The Indian QSR market is experiencing strong momentum, driven by evolving consumer preferences, rising urbanisation and increasing adoption of global food formats. Wing Zone’s internationally acclaimed flavours, paired with our operational expertise, position us well to capture this opportunity.

Our launch in Koramangala, Bangalore, is only the beginning. We have a clear roadmap for expansion across key metros through a combination of high-street stores and cloud kitchens, ensuring both accessibility and scalability. This acquisition further strengthens our vision of building a diversified multi-brand portfolio and reinforces our commitment to becoming a leading player in India’s fast-growing food services sector.”

Financials and others. 

The revenue from operations is at Rs 46.21 crore in Q2 FY26 versus Rs 17.98 crore in Q2 FY25, which is an increase of about 157 per cent YoY. Similarly, the net profit has increased by about 310% when we compare the Q2 FY25 profit of Rs 84 lakh with the Q2 FY26 profit of Rs 3.44 crore. 

Spice Lounge Food Works Limited is a publicly listed Indian food-service company that is shaping the country’s evolving dining landscape through a mix of casual, quick-service and fast-casual formats. With deep hospitality experience and a strong presence across multiple states, the company manages and grows a portfolio of both global and homegrown brands. 

Its strength lies in combining operational discipline with strategic brand partnerships and technology-driven platforms to deliver reliable, high-quality dining experiences. As it expands further, Spice Lounge is positioning itself as an important player in India’s fast-growing food services sector.

Written by Leon Mendonca. 

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