DSM Fresh Foods reported a strong financial performance for the year ended March 31, 2026 (FY26), with revenue from operations growing 69% to INR 221 crore compared to INR 131 crore in FY25. The company’s Profit After Tax (PAT) for FY26 stood at INR 14.4 crore, reflecting a growth of nearly 59% year-on-year, while Profit Before Tax (PBT) increased significantly to INR 43.2 crore from INR 11.7 crore in the previous year. The results were disclosed during the H2 and FY26 earnings conference call held on May 29, 2026.

The second half of the fiscal year witnessed robust acceleration, with H2 FY26 revenue reaching INR 125 crore, a nearly 100% increase from INR 65 crore in H2 FY25. This growth was driven by strong traction in the B2B HoReCa channel, deeper market penetration, and an increasing contribution from the fish and seafood category. EBITDA for H2 FY26 stood at INR 15.9 crore compared to INR 11.1 crore in the corresponding period last year, with margins at 13%. On a full-year basis, EBITDA nearly doubled to INR 31 crore from INR 16 crore in FY25.

Financial Performance

Management attributed the profitability improvements to operating leverage and procurement efficiencies. The adjusted PAT for FY26, excluding deferred tax adjustments, was INR 18.4 crore. The company noted that growth is now coinciding with profitability improvements, validating the sustainability of its business model.

Operational Highlights

The company achieved a strategic shift in its business mix during FY26, with the B2B HoReCa segment contributing 68% of revenues, while B2C contributed 32%. DSM Fresh Foods services over 300 restaurants and institutional customers. Category-wise, chicken contributes approximately 50% of revenues, while meat and seafood together contribute the remaining 50%. The contribution of fish increased from 21% in H1 to 27% in H2.

To support this growth, the company strengthened its sourcing ecosystem by partnering with nearly 300 seafood farmers and initiated the development of an integrated aquaculture platform across approximately 270 acres. Additionally, the company launched Meevaa Foods, a frozen ready-to-eat brand, which secured over 5,000 orders within 48 hours of its launch. Management expects Meevaa Foods to contribute 15-20% of overall revenues in FY27.

Looking ahead, DSM Fresh Foods is targeting revenue growth of 70-80% for FY27. The company plans to scale its offline retail presence by expanding its partner store network to 300-400 stores by the end of the year. It also aims to strengthen backward integration and expand into value-added categories to drive margin improvements.

DSM Fresh Foods Limited has approved the acquisition of a 100% equity stake in Avyom Foodtech Private Limited for up to ₹10 crore to strengthen its position in the food processing sector. The strategic investment, approved by the board on June 02, 2026, will see Avyom Foodtech become a wholly owned subsidiary. The transaction is a related party deal, as promoters and directors are common to both entities, and will be conducted on an arm’s length basis through cash consideration.

The acquisition is aimed at expanding DSM Fresh Foods' product portfolio and market reach. Avyom Foodtech, formerly known as IEY Education Private Limited, is engaged in manufacturing, processing, and distributing ready-to-eat and ready-to-cook foods, frozen foods, snacks, and sauces. The investment is also expected to facilitate Avyom Foodtech's proposed acquisition of the operational food processing business of Ambrozia Frozen Foods through a slump sale, subject to customary conditions and approvals.

The target company reported a turnover of ₹14,90,284 for FY 2024-25. Incorporated on July 22, 2022, Avyom Foodtech operates in the food processing, manufacturing, and allied food products sector. The indicative timeline for the completion of the acquisition is within 3-9 months from the date of board approval.

In addition to the acquisition, the board appointed Harish Kumar & Associates as the secretarial auditor for the financial year ended March 31, 2026. The firm, based in Greater Noida West, has been peer reviewed by the Institute of Company Secretaries of India (ICSI).

Financial and Operational Details of Avyom Foodtech