Lotus Chocolate Q1 FY27 Results (BSE: 523475)

· Analysis by Alpha Inflection

Signal: Revenue declined

The read

Revenue collapsed 42% YoY to ₹91.95 Cr, PAT crashed 99.3% to ₹0.02 Cr — entire profit from other income; operating business near breakeven with EBITDA margin of 3.5% vs 22.4% a year ago; earnings quality is severely compromised.

Lotus Chocolate Q1 FY27 key financials
MetricValueYoYQoQ
Revenue₹91.95 Cr-42.1%-27.5%
EBIT₹2.22 Cr-72.4%
Net profit₹0.02 Cr-99.3%
EPS₹0.02-99.1%
EBIT margin3.5%

P&L walk

Revenue collapsed 42% YoY, cost of materials surged to 68.5% of revenue (vs 42.2% a year ago), gross margin crushed; EBITDA barely positive at 3.5% vs 22.4% prior; PAT of ₹0.02 Cr entirely from other income (₹19.66 Cr) which dwarfs operating loss — unsustainable earnings quality.

Key concerns

Earnings quality: includes non-operating other income

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