Shares of Lotus Chocolate Company Ltd. fell to a 5% lower circuit on Wednesday, trading at ₹1,343.20, as investors reacted to weak quarterly earnings.
The company reported a 56.4% year-on-year decline in net profit to ₹2.99 crore for Q1 FY26 compared to ₹6.86 crore in Q1 FY25.
While sales rose 12.3% YoY to ₹158.71 crore (from ₹141.31 crore), operating margins (OPM) contracted sharply to 3.13%, down from 7.9% last year. Profit before tax (PBT) also dropped 62% YoY to ₹3.98 crore.
Key metrics for Q1 FY26 vs Q1 FY25:
| Particulars | Q1 FY26 | Q1 FY25 | % Change |
|---|---|---|---|
| Sales (₹ Cr) | 158.71 | 141.31 | +12% |
| Net Profit (₹ Cr) | 2.99 | 6.86 | -56% |
| OPM (%) | 3.13 | 7.90 | ↓ |
| PBT (₹ Cr) | 3.98 | 10.41 | -62% |
The decline in profitability despite higher sales suggests rising costs and margin pressure impacted the bottom line.
Lotus Chocolate, engaged in manufacturing chocolates, cocoa products, and similar items, noted in its regulatory filing that total expenses for the quarter stood at ₹158.35 crore, nearly matching its revenue from operations.
The stock hit its lower circuit limit of ₹1,343.20, down ₹70.65 or 5% from the previous close of ₹1,413.85, reflecting investor concerns over declining profitability despite sales growth.
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