Reliance Retail-Owned Lotus Chocolate Share Price in Focus Following 97% Profit Decline in Q3FY26

Reliance Retail-owned Lotus Chocolate Company faced a significant market reaction on January 13, 2026, as its shares dropped 10% to ₹677.  

This decline followed the announcement of a steep 97% fall in net profit for Q3 FY26, amounting to ₹14 lakh, compared to ₹3.72 crore in the previous year. 

Lotus Chocolate Q3FY26 Earnings Results 

Lotus Chocolate's financial results for Q3 FY26 revealed a substantial decline in profitability. The company's net profit plummeted 97% to ₹14 lakh from ₹3.72 crore in Q3 FY25.  

Revenue from operations also saw a 14% decrease, falling to ₹142 crore from ₹165 crore in the same period last year. 

Despite these challenges, the company managed to improve its EBITDA margin by 20 basis points to 4%. The profit before tax (PBT) for the quarter stood at ₹53 lakh, a significant drop from ₹3.70 crore in Q3 FY25. 

Operational Challenges 

Lotus Chocolate encountered several operational challenges during the quarter, primarily due to commodity price volatility and liquidity constraints.  

The company implemented hedging strategies to mitigate the impact of fluctuating commodity prices. Despite these efforts, the challenging commodity cycle environment affected overall performance. 

Strategic Transformation 

In response to these challenges, Lotus Chocolate is undergoing a strategic transformation. The company is modernising its plant and machinery to shift from a commodity-driven model to a consumer-focused approach. This transition aims to enhance value addition and improve operational efficiency. 

Read More: Reliance Retail Introduces South Korean Makeup Brand Hince in India under Tira! 

Consumer-Focused Approach 

Lotus Chocolate is moving towards a consumer-focused business model, aiming to scale up its business-to-consumer franchise. This shift is expected to reduce reliance on volatile commodity cycles and strengthen the company's position in consumer markets. 

Lotus Chocolate Share Price Performance 

As of January 14, 2026, at 10:08 AM, Lotus Chocolate share price on BSE was trading at ₹693.70 up by 2.22% from the previous closing price. 

Conclusion 

Lotus Chocolate's Q3 FY26 results highlight significant challenges, with a 97% drop in net profit and a 14% decline in revenue. The company is actively pursuing a strategic transformation to address these issues and improve its long-term financial performance. 

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