Spice Lounge Food Works [BOM: 539895], a company undergoing significant transformation in the food and finance sector, reported its Q1 FY26 results on Thursday, 14th August 2025. Despite posting a loss for the quarter, the company’s performance showed signs of improvement compared to the previous period. Spice Lounge Food Works stock price has been closely followed by investors, with its performance reflecting the ongoing changes and challenges within the company.
For Q1 FY26, the company reported revenue from operations of ₹32.3 crore, a decline of 4.3% compared to the previous quarter’s ₹34.8 crore. The total income stood at ₹32.4 crore, down by 7.9% from ₹35.2 crore in Q4 FY25. Despite the decline in income, the net loss narrowed by 66.7%, dropping to ₹1.2 crore from a loss of ₹3.6 crore in the previous quarter.
Key Financial Results for Spice Lounge Food Works Q1 FY26:
| Particulars | Q1 FY26 (₹ Cr) | Q4 FY25 (₹ Cr) | Q1 FY25 (₹ Cr) | YoY Growth (%) | QoQ Growth (%) |
| Revenue from operations | 32.3 | 34.8 | – | – | -4.3% |
| Total income | 32.4 | 35.2 | – | – | -7.9% |
| Net Profit/Loss | -1.2 | -3.6 | – | – | 66.7% |
| Basic EPS (₹) | -0.02 | -0.05 | – | – | – |
| Diluted EPS (₹) | -0.02 | -0.05 | – | – | – |
Important Updates from Spice Lounge Food Works’ Latest Financial Results
Structural Shift and Consolidation
Spice Lounge Food Works has stated that Q2 CY25, or Q1 FY26, is the first quarter of consolidation, which is why comparative consolidated figures for the same quarter last year are not provided. This follows a structural shift that took place last year, during which the company changed its name from Shalimar Agencies Ltd. to Spice Lounge Food Works Ltd., rebranded its operations, and likely integrated new subsidiaries under its fold. This restructuring marks a pivotal moment in the company’s evolution, with a focus on streamlining operations and expanding its footprint.
Segment Performance
The company’s Software & IT Services segment posted a profit of ₹1.4 crore, offering a positive contribution to the overall performance. However, the Food & Restaurant division continued to drag down results, reporting a loss of ₹1.9 crore. This stark contrast between the two segments highlights the ongoing struggles in the food business, where margins remain under pressure. Moreover, a substantial ₹1.5 crore interest expense also weighed on profitability, emphasising the need to manage both margins in the food segment and financing costs more effectively.
Stock Performance
Spice Lounge Food Works has emerged as one of the most explosive wealth creators on Dalal Street, with its stock surging an astounding 3,300% in the last five years and 725% in the past year alone, from a 52-week low of ₹4.60 to ₹37.90 as of August 20, 2025. This impressive stock performance has captured the attention of retail investors, with the stock frequently hitting upper circuits and delivering massive gains to its all-retail shareholder base.
Financial Concerns Despite Stock Rally
Despite the remarkable stock performance, the company’s financials have remained weak. Spice Lounge Food Works has posted losses on a consolidated basis and is continuing to face challenges in its loss-making food segment. Furthermore, the company’s high interest costs have added to its financial burden. The lack of institutional holding, limited trading float, and recent structural changes have created additional uncertainty, leaving the stock vulnerable to volatility and potential corrections.
Looking Forward
Despite facing challenges in its core food business, Spice Lounge Food Works has managed to significantly reduce its losses in Q1 FY26. The company’s strategy of expanding its Software & IT Services division and controlling expenses in the food segment will be crucial to achieving more consistent profitability in the coming quarters. As the company continues to restructure and strengthen its operations, it is important for investors to monitor both its margin improvements in the food business and its ongoing financial discipline.
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