Spice Lounge's IT pivot now drives 80% of revenue, but the base is tiny
Software and IT services delivered 50% topline growth to ₹158.42 crore in FY26. The food division shrank.
What's new
- Consolidated revenue jumped 50% to ₹158.42 crore for FY26.
- Net profit climbed 71% to ₹9.69 crore, driven by the IT services division.
- The food and restaurant business contracted marginally as software now dominates.
Why this matters
The company is executing a full pivot from restaurants to IT. Software generates nearly 80% of revenue, making the namesake food business a shrinking legacy. The growth rate is strong, but the absolute scale of ₹158 crore is still small.
What we're watching
- Whether the food division stabilises or continues to contract.
- If IT services can scale beyond the current base to justify the pivot.
- How a micro-cap with this growth profile trades at current valuations.
The full read
Spice Lounge Food Works is no longer a restaurant company. IT services now generate nearly 80% of its revenue, pushing consolidated sales up 50% to ₹158.42 crore in FY26. Net profit rose 71% to ₹9.69 crore. The food division that gave the company its name contracted. For a micro-cap, the growth rate is impressive. But the base is tiny. The open question is whether the IT segment can scale beyond ₹158 crore to make this a durable business, or if the pivot has simply swapped one small operation for another.
Questions answered
- How much of Spice Lounge's revenue now comes from IT?
- The Software and IT services segment contributed nearly 80% of the company's ₹158.42 crore in FY26 revenue. This is the primary engine behind the 50% topline growth.
- What happened to the food and restaurant business?
- The Food and Restaurant Services division saw a marginal contraction during FY26. Its contribution has become small relative to the IT services business.
- Are the absolute revenue and profit figures large?
- No. At ₹158.42 crore in revenue and ₹9.69 crore in net profit, the scale remains small. The company is a micro-cap.
- When did the board approve these results?
- The board approved the audited FY26 results on May 29, 2026.