The share price of Spice Lounge Food Works Limited, a notable multibagger small-cap stock, locked at a 5% upper circuit during Friday's trading session on the BSE. The stock opened at ₹37.58 per share, slightly below its previous close of ₹37.97. After an initial dip of 3.41% to an intraday low of ₹36.30, the scrip witnessed a sharp reversal, rallying as much as 9.81% from those lows before settling at the circuit filter.
Strategic Moves Fueling Growth
The positive momentum is attributed to strong investor demand, with trading volumes reaching around 1.6 lakh shares for the day. This rally is backed by a series of strategic announcements from the company. On December 19, Spice Lounge revealed the acquisition of a 100% stake in Singapore-based Prisha Infotech for a total consideration of $150,000.
This move marks a strategic expansion into technology-enabled solutions for the food service sector. The company stated that integrating Prisha Infotech's software development capabilities will strengthen its digital foundation and provide a gateway to international markets via Singapore.
Earlier, on December 4, the company secured a major expansion deal by obtaining the exclusive Master Franchise rights for Wing Zone in India. Wing Zone is a globally recognized quick-service restaurant (QSR) brand famous for its chicken-based menu. This partnership positions Spice Lounge to capitalize on India's rapidly growing QSR market.
Robust Financial Performance Underpins Rally
The market optimism is firmly rooted in the company's stellar financial results for the second quarter of FY26. For the period ended September 30, 2025, Spice Lounge Food Works reported a spectacular 300% year-on-year surge in net profit, which climbed to ₹3.4 crore from ₹0.83 crore in Q2FY25.
Revenue from operations skyrocketed 158% to ₹46.20 crore, compared to ₹18 crore a year earlier. Total income also saw a significant rise to ₹49 crore from ₹18.2 crore. The company's operational efficiency improved, with EBITDA standing at ₹4.15 crore. Total comprehensive income reached ₹3.50 crore, marking a substantial increase from the same quarter last year.
Long-Term Wealth Creation vs Short-Term Volatility
An analysis of the share price trend reveals a tale of two timelines. In the short term, the stock has faced pressure, declining 10.12% over the past five sessions and 17% in the last month. However, the long-term perspective tells a different story, solidifying its status as a multibagger.
The stock has delivered impressive gains of 38% over the last six months. More remarkably, it has provided staggering returns of 297.41% in the past one year. For patient, long-term investors, Spice Lounge Food Works has been a phenomenal wealth creator, generating an astronomical return of 3,306.84% over the last five years.
The stock, listed exclusively on the BSE, touched its 52-week high of ₹72.20 on November 24, 2025, and a 52-week low of ₹7.69 on March 10, 2025. The recent volatility juxtaposed with explosive long-term growth highlights the dynamic nature of this small-cap performer in the SME segment.
