Lotus Chocolate has reported a challenging third quarter with significant declines in both revenue and profitability compared to the corresponding period in the previous year. The chocolate manufacturer's financial performance reflects substantial operational headwinds during the quarter.

Financial Performance Overview

The company's Q3 results show a dramatic shift in profitability metrics. Net profit for the quarter stood at ₹1.40 million, representing a steep decline from ₹37.00 million recorded in the same quarter of the previous year. This translates to a 96% year-on-year decrease in net profit, indicating significant pressure on the company's bottom line.

Revenue Performance

The company's top-line performance also faced challenges during the quarter. Revenue for Q3 declined to ₹1.30 billion compared to ₹1.47 billion in the corresponding quarter of the previous year. This represents a 12% year-on-year decrease in revenue, suggesting reduced sales volumes or pricing pressures in the chocolate manufacturing segment.

Profitability Analysis

The disproportionate decline in net profit compared to revenue indicates margin compression during the quarter. While revenue decreased by 12%, the net profit margin contracted significantly, falling from approximately 2.5% in the previous year's Q3 to just 0.1% in the current quarter. This substantial margin erosion suggests increased operational costs or pricing challenges that impacted the company's profitability structure.

Summary

Lotus Chocolate's Q3 results highlight significant operational challenges with both revenue and profitability declining year-on-year. The company recorded a net profit of ₹1.40 million against ₹37.00 million in the previous year, while revenue dropped to ₹1.30 billion from ₹1.47 billion, reflecting the difficult operating environment faced by the chocolate manufacturer.

Lotus chocolate Company Limited reported challenging financial results for the quarter ended December 31, 2025, with net profit declining significantly compared to the previous year. The Hyderabad-based chocolate manufacturer's performance reflected operational headwinds despite maintaining its market position in the chocolate and cocoa products segment.

Financial Performance Overview

The company's quarterly results showed a substantial decline in profitability metrics. Net profit for Q3FY26 dropped to ₹14.34 lakh from ₹371.76 lakh in the corresponding quarter of the previous fiscal year, representing a decline of 96.14%. Revenue from operations also contracted by 8.91% to ₹13,363.07 lakh compared to ₹14,669.41 lakh in Q3FY25.

Nine-Month Performance Analysis

The nine-month period ending December 31, 2025, presented a mixed picture for the company. While revenue from operations grew by 8.76% to ₹45,277.76 lakh from ₹41,629.64 lakh in the corresponding period of FY25, profitability remained under pressure. Net profit for the nine-month period declined 71.08% to ₹457.32 lakh compared to ₹1,581.17 lakh in the previous year.

Cost Structure and Operational Metrics

The company's cost structure showed significant variations during Q3FY26. Cost of materials consumed decreased substantially to ₹1,971.67 lakh from ₹17,332.71 lakh in Q3FY25, while purchases of stock-in-trade increased dramatically to ₹9,836.84 lakh from ₹189.02 lakh. Employee benefits expense rose to ₹852.73 lakh compared to ₹466.90 lakh in the previous year quarter, indicating expanded workforce or increased compensation levels.

Corporate Restructuring Development

A significant corporate development occurred during the quarter with a change in promoter structure. Effective December 1, 2025, pursuant to a scheme of arrangement, 65,49,065 equity shares representing 51% of the total paid-up equity share capital transferred from the old Reliance Consumer Products Limited to Reliance Consumer Products Limited (formerly known as Tira Beauty Limited). This transaction resulted in the new entity becoming the promoter and holding company of Lotus Chocolate Company Limited.

Regulatory Compliance and Audit Status

The financial results were reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on January 12, 2026. The board meeting commenced at 3:48 p.m. IST and concluded at 4:02 p.m. IST. Deloitte Haskins & Sells LLP, the statutory auditors, conducted a limited review of the results and issued their review report confirming compliance with applicable accounting standards and regulatory requirements.