Lotus Chocolate net profit drops to ₹2.21 lakh on 42% revenue fall
Revenue from operations fell to ₹91.95 crore, while other income surged to ₹19.66 crore masking core weakness.
— 1 earlier story on Lotus Chocolate Company Ltd. →What's new
- Net profit of ₹2.21 lakh versus ₹2.99 crore YoY and a loss of ₹4.47 crore in the preceding quarter.
- Revenue from operations fell 42% year-on-year to ₹91.95 crore.
- Other income surged to ₹19.66 crore from ₹3.61 crore, masking operating weakness.
Why this matters
A net profit of ₹2.21 lakh on ₹91.95 crore revenue is effectively zero profitability. The 42% revenue decline signals deep demand trouble, while the other-income boost is non-recurring in nature. Investors cannot rely on interest or dividend income to sustain the business.
What we're watching
- Can the company arrest the revenue slide in coming quarters?
- Whether other income will remain elevated or revert to normal levels.
- Management's commentary on demand trends and margin recovery.
The full read
Lotus Chocolate Company reported a net profit of ₹2.21 lakh for Q1 FY27—a rounding error on ₹91.95 crore in revenue. That is down from ₹2.99 crore a year ago and a recovery from the preceding quarter's loss of ₹4.47 crore, but the scale is alarming. Revenue collapsed 42% year-on-year. Total expenses barely budged, so costs consumed nearly all revenue. The only saving grace was a surge in other income to ₹19.66 crore from ₹3.61 crore, but that is not core business. The market, pegging the company at ₹878 crore, is pricing in a turnaround that the numbers simply do not show yet. This is a routine earnings release, but routine doesn't mean good. It means the company earned less than a mid-level manager's salary on ₹91.95 crore of sales.
Questions answered
- What caused net profit to drop so sharply?
- Revenue fell 42% YoY to ₹91.95 crore, while operating expenses stayed nearly flat. The result: a pre-tax profit of just ₹2.95 lakh, translating to a net profit of ₹2.21 lakh.
- Why did other income spike to ₹19.66 crore?
- The filing does not specify the source. It could be from sale of investments, interest, or dividends. Such income is typically volatile and not a reliable driver of earnings.
- Is the company in financial distress?
- With a debt/equity of 2.49, leverage is high. The minimal net profit leaves little cushion for debt servicing. The market cap of ₹878 crore implies a P/E of over 8,600 based on annualised earnings—an extreme valuation.
- Did the auditor flag any concerns?
- The statutory auditor issued an unqualified review conclusion for the quarter, meaning no material misstatements were found. However, the review does not guarantee the business's long-term viability.
Lotus Chocolate Company Ltd.
Latest quarter · Jun 2024
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All notes on LOTUSCHO →- 15 Jul 2026 · 6:44 PM IST Lotus Chocolate net profit drops to ₹2.21 lakh on 42% revenue fall
- 13d ago Lotus Chocolate swings to profit but revenue falls 42% yoy