Lotus Chocolate Stock Plunges 10% on Crushing Q3 Loss
Overview
Lotus Chocolate Company shares plummeted nearly 10% to a 52-week low following a disastrous Q3FY26 earnings report. Profit After Tax (PAT) collapsed 96% year-on-year to just ₹0.14 crore, while gross revenue fell 14%. Management is shifting focus to a consumer-led model, planning plant upgrades, but this could cause near-term softness.
Lotus Chocolate Company's stock plunged nearly 10% on Friday, hitting a 52-week low of ₹677 per share. The sharp decline followed the release of the company's dismal Q3 FY26 financial results.
Q3 Performance Plunges
In the December quarter, Lotus Chocolate reported a Profit After Tax (PAT) of a mere ₹0.14 crore. This represents a staggering 96% drop from ₹3.72 crore in the same period last year. Gross revenue also suffered, declining 14% year-on-year to ₹142.11 crore from ₹164.67 crore.
Earnings Before Interest, Tax, Depreciation, and Amortisation (Ebitda) saw a 10% dip, falling to ₹5.67 crore compared to ₹6.29 crore year-on-year. Despite the revenue drop, Ebitda margins improved slightly to 4% from 3.8% a year ago. Net turnover for the quarter was ₹134 crore, down from ₹147 crore in the prior year's Q3.
Management Outlines Future Strategy
Natarajan M Venkataraman, whole-time director, stated the company is transitioning from a commodity-based business to a consumer-led growth engine. This strategic review includes reassessing existing business-to-business (B2B) customer contracts. The company is also modernizing its plant and machinery over the next few quarters.
These upgrades aim to enhance capacity, improve reliability, and strengthen in-house manufacturing. The goal is better cost control, faster innovation, and consistent brand quality. Management anticipates potential near-term business softness due to planned production interruptions during these upgrades, especially before the festival season.
