Spice Lounge's IT division drives 50% revenue surge, leaving food business behind
The micro-cap's annual results show a tech-focused transformation is almost complete, with software services now generating 80% of sales.
What's new
- FY26 consolidated revenue surged 50% to ₹158.42 crore, with net profit up 71% to ₹9.69 crore.
- The Software and IT services division now makes up nearly 80% of total revenue.
- The Food and Restaurant Services division saw marginal contraction.
Why this matters
Spice Lounge Food Works is now, in practice, a tech company. The transformation is rapid and almost complete, with its original food business stagnating while software services drive all growth. For a micro-cap, the 71% profit increase is strong, but the absolute profit figure of ₹9.69 crore means any operational hiccup has outsized impact.
What we're watching
- Whether the food division stabilises or continues to shrink as a share of revenue.
- Margin sustainability as the IT mix scales.
- Any strategic commentary on further capital allocation.
The full read
Spice Lounge Food Works is now, for all practical purposes, a tech company. Its FY26 results show the Software and IT services division generating nearly 80% of ₹158.42 crore in consolidated revenue, a 50% jump from the prior year. The original food business is marginal, seeing only a slight contraction. Profit grew even faster, up 71% to ₹9.69 crore. For a micro-cap, the growth profile is impressive, but the absolute numbers remain small. The transformation is almost complete. The open question is whether the legacy food division will be maintained, divested, or allowed to fade.
Questions answered
- What is driving Spice Lounge's growth?
- The growth is driven entirely by the Software and IT services division, which contributed nearly 80% of the company's ₹158.42 crore in FY26 revenue. The original Food and Restaurant Services division saw a marginal contraction.
- How much profit did the company make?
- Net profit rose 71% to ₹9.69 crore in FY26, up from ₹5.65 crore the previous year, on consolidated revenue of ₹158.42 crore.
- Is the food business still relevant?
- The namesake Food and Restaurant Services division saw marginal contraction, while its revenue share has been overwhelmed by the tech segment. It is no longer the company's primary growth engine.
- What does this result say about the company's business model?
- The results confirm a structural shift toward higher-margin technology services. The board approved the audited figures on May 29, 2026, highlighting the continued transformation of the company.