The company’s net profit stood at Rs 14 lakh, down by 96% year-on-year, Lotus said in a regulatory filing. In the same quarter last year, the company reported a net profit of Rs 3.72 crore.
Lotus reported revenue from operations of Rs 142 crore for the quarter under review, down 14% from Rs 165 crore in the corresponding quarter of the previous fiscal year.
On the other hand, EBITDA margin witnessed a marginal uptick of 20 basis points to 4%. One percent (1%) is equal to 100 basis points (bps). EBITDA is earnings before interest, tax, depreciation and amortisation.
“Amid heightened commodity price volatility, Lotus actively hedged its exposure to commodity price dislocations to limit downside risk. Despite operating through an unfavourable phase of the commodity cycle and a constrained liquidity environment, the company delivered a PBT of Rs 53 lakh for the quarter compared to Rs 3.7 Crore in 3Q FY25. The company stayed focused on margin protection during the period,” the company said in an exchange filing.
As part of its longer-term growth plans, the company is also undertaking a phased modernisation of its existing plant and machinery after a detailed review. While these initiatives are intended to position the business ahead of the festival-led demand season, limited and planned production disruptions could weigh on near-term performance. Over time, a larger contribution from consumer brands is expected to support structurally higher margins, reduce exposure to commodity cycles and strengthen the company’s competitive positioning and shareholder returns.
Following early validation of its consumer business in select geographies this year, Lotus Chocolate Company is now focused on scaling up its B2C consumer franchise. This marks a shift from a largely commodity-driven cocoa ingredients model to a more consumer-led approach with higher value addition. The integrated cocoa-to-consumer model is expected to enhance earnings resilience, profitability and visibility over the medium term.(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)