In a month marked by a sharp sell-off triggered by heightened tensions in the Middle East, some small-cap stocks have managed to withstand the selling pressure, with Spice Lounge Food Works being one of them.
The stock, which has a market capitalisation of less than ₹2,500 crore, was locked in a 5% upper circuit in Friday’s trade on September 11, settling at ₹33 apiece. It has been experiencing a similar run since the start of September, closing each trading session at the upper circuit limit.
It has been locked under the 5% upper circuit in each of the last nine trading sessions. This massive surge in buying interest has pushed its monthly returns to 55.5%, outperforming the Nifty Smallcap 100 index by a wide margin, with the index remaining largely flat over the same period.
Meanwhile, the one-way rally came after the stock remained largely volatile throughout 2026, coming under significant selling pressure after it hit an all-time high in November 2025. Since then, it has attempted several recoveries but surrendered all those gains in the following months, dragging the stock to levels of around ₹16 in May.
Considering those lows, the stock is now trading 106% higher, showing its latest ability from sustained losses.
What triggered the sharp rally in the small-cap stock?
The sharp rally in September came after the company announced the launch of a new business vertical, marking its entry into food emulsifiers, agribusiness and agri-sourcing.
The Food Emulsifier & Agro Division will focus on food emulsifiers, agri-sourcing and processing, including agrochemicals, to supply the company’s restaurant, quick-service restaurant (QSR) and live-events business, Xora World. The division will also independently serve hotels, QSR chains and food processing units as a B2B food emulsifier and ingredient supplier.
The company expects the targeted verticals across food emulsifiers and agro- and agrochemical products to have a revenue potential of approximately ₹1,200 crore. The new business is being undertaken directly by the company as an internal division, with no separate subsidiary or joint venture announced at this stage, as per the September 1 filing.
The company said it is currently working on food emulsifier and agrochemical partnerships, farm-gate sourcing tie-ups and processing infrastructure. It plans to subsequently scale up processing capacity, onboard B2B and institutional customers, and expand into exports and global joint-venture partnerships.
Adding to the investor interest, the company said it is in advanced and confidential discussions with global food emulsifier and agribusiness majors for strategic partnerships.
Which markets does the company operate in?
Founded in 2019 in India, the company operates in India, the USA, and Canada. It holds exclusive franchise rights for global brands like Buffalo Wild Wings, Wingzone, eTouch, and TekSoft, and it owns four original brands—Blaze Kebabs, Xora, Salud, and Sunburn Union. Focused on innovation and quality, the company is rapidly expanding its global footprint, according to its website.
It also provides computer and outsourcing services in the information technology sector, including data, voice, or video collection and processing, as well as call centre services.
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