DSM Fresh Foods (Zappfresh) Reports Strong FY26 Performance

Consolidated revenue from operations for FY26 reached INR 221 crore, marking a significant 69% increase from INR 131 crore in FY25. EBITDA nearly doubled to INR 31 crore from INR 16 crore, reflecting improved operating leverage and efficiencies.

Reader Takeaway: Robust revenue growth driven by strategic B2C expansion, but negative operating cash flow requires monitoring.

What just happened

DSM Fresh Foods, also known as Zappfresh, announced its full-year financial results for FY26. The company achieved INR 221 crore in revenue, a substantial 69% rise year-over-year. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) nearly doubled, reaching INR 31 crore. Profit After Tax (PAT) was INR 14.4 crore, with adjusted PAT at INR 18.4 crore after accounting for deferred tax impacts.

Why this matters

This financial performance indicates strong operational execution and market traction for Zappfresh. The doubling of EBITDA suggests effective cost management and scalability. The company's strategic shift towards a more balanced B2B and B2C model, along with diversification into new product categories, positions it for sustained future growth.

The backstory

Currently, Zappfresh's revenue is composed of approximately 68% from B2B channels and 32% from B2C. The company aims to achieve a 50-50 mix in the long term as it expands its direct-to-consumer offerings.

What changes now

Key growth initiatives are underway. The 'Partner Store Model' is being scaled up from 100 to a target of 300-400 stores, each contributing significant monthly revenue. The new frozen ready-to-eat brand, 'Meevaa', is a strategic focus, projected to contribute 15-20% of total revenue in FY27. An integrated aquaculture platform is also being developed to enhance sourcing and margins.

Risks to watch

Investors should be aware of the negative operating cash flow, currently impacted by working capital needs for rapid expansion. The company holds INR 20-25 crore in cash and liquidity as of late May 2026. Geopolitical risks impacting export logistics and the challenge of executing multiple scaling initiatives simultaneously are also key watch points.

Peer comparison

While specific peer financial data isn't provided in the filing, Zappfresh's revenue growth rate of 69% in FY26 is a strong indicator of its competitive positioning within the food processing and direct-to-consumer e-commerce sector.

Context metrics (time-bound)

• FY26 Revenue: INR 221 crore (up 69% YoY)
• FY25 Revenue: INR 131 crore
• FY26 EBITDA: INR 31 crore (nearly doubled)
• FY25 EBITDA: INR 16 crore
• H2 FY26 Revenue: INR 125 crore
• H2 FY25 Revenue: INR 65 crore

What to track next

Management projects 70-80% revenue growth for FY27, with improved bottom-line performance expected due to tax normalization and increased contribution from high-margin products like Meevaa and seafood. Monitoring the execution of the partner store expansion and the company's cash flow management will be crucial.