DSM Fresh Foods Limited , operating under the brand name Zappfresh, has reported a strong financial performance for the first half of fiscal year 2026, with significant revenue growth and margin improvements. The company, which recently went public, is positioning itself as a key player in India's organized fresh meat and seafood market.

Financial Highlights

• Revenue for H1 FY26 stood at INR 95.85 crores, representing a 43% year-on-year growth.
• Gross margin improved to 34% in H1 FY26 from 29% in H1 FY25.
• EBITDA margin doubled to 16% from 8% in the same period last year.
• PAT (Profit After Tax) margin increased to 7% from 4% year-on-year.

Business Segment Performance

The company reported a balanced revenue split between its B2B and B2C segments:

This marks a significant shift from the previous year's 70-30 split in favor of B2C, indicating strong growth in the B2B segment.

Product Category Improvements

DSM Fresh Foods has seen substantial margin improvements in key product categories:

Fish and mutton combined now contribute to approximately 46-47% of the company's revenue.

Strategic Initiatives and Future Outlook

1. Omnichannel Approach: The company is focusing on a balanced portfolio across retail, HoReCa, and modern trade channels.

2. Local Meat Shop Partnerships: DSM Fresh Foods is piloting a program to partner with local meat shops, providing them with supplies, technology, and branding support.

3. Expansion Plans: While currently operating in NCR, Bangalore, and Mumbai, the company is cautious about expanding to new geographies, prioritizing profitability and supply chain efficiency.

4. Inorganic Growth: The company is in the process of finalizing two acquisitions in non-meat categories, aimed at the export market. These acquisitions are expected to be significantly larger than previous ones.

5. Technology Integration: DSM Fresh Foods has launched a B2B technology app to streamline ordering processes for offline customers, including hotels, restaurants, and small retailers.

6. Product Portfolio Expansion: The company plans to explore new categories, including seafood and non-meat products.

Deepanshu Manchanda, Managing Director and Chairman of DSM Fresh Foods, expressed confidence in the company's growth trajectory, stating, "We are looking at building a different asset profile, where we would look at expanding into new categories, creating depth in different categories like seafood and even some of the non-meat categories which we are exploring currently."

The company maintains a strong cash position with INR 2.4 crores in cash and equivalents as of September 30, 2025. With its recent IPO raising INR 54 crores, DSM Fresh Foods is well-positioned to fund its expansion plans and technological enhancements.

As the Indian meat market is projected to grow at a CAGR of 8.5% from USD 55 billion in 2024 to USD 114 billion by 2033, DSM Fresh Foods aims to capitalize on this growth potential while maintaining its focus on profitability and sustainable expansion.

DSM Fresh Foods Limited , a leading player in the fresh protein and ready-to-cook food category, has announced strong financial results for the half year ended September 30, 2025 (H1 FY26). The company, which operates under the brand name Zappfresh, has demonstrated significant growth across key financial metrics, underlining the strength of its integrated fresh food supply chain model.

Financial Highlights

DSM Fresh Foods has reported impressive year-on-year growth in its key financial indicators:

The company's revenue rose by 43% to ₹95.85 crore, while EBITDA surged by 188% to ₹14.92 crore. Notably, the Profit After Tax (PAT) nearly tripled, reaching ₹7.03 crore, marking a 188% increase from the previous year.

Operational Highlights

• Strengthened supply chain and deepened partnerships with HORECA (Hotel/Restaurant/Café) clients.
• Increased working capital cycle due to extended credit to key B2B clients, aimed at supporting sales momentum.
• Maintained a comfortable leverage position to support future growth.

Management Commentary

Deepanshu Manchanda, Founder & CEO of DSM Fresh Foods, commented on the performance: "This is our first result post-listing, and it reinforces the confidence the market placed in us. The numbers clearly reflect the strength of our model — a profitable, digitally native, high-frequency food business. Delivering 43% revenue growth and nearly tripling EBITDA and PAT within a year underscores the scalability of our integrated supply chain and the loyalty of our customer base."

Manchanda further added, "The fresh meat and ready-to-cook market in India is formalising rapidly. Consumers are choosing clean, hygienic, trustworthy brands — and Zappfresh stands right at the center of this shift. With our strengthened cold-chain backbone, category-driven strategy, and expanding metro presence, we remain committed to sustainable, profitable, and long-term value creation for our shareholders."

Corporate Developments

DSM Fresh Foods announced several key appointments:

1. Ms. Surbhi Bansal appointed as Secretarial Auditor for FY 2025-26.
2. M/s A H S G & Co. LLP appointed as Internal Auditor for FY 2025-26.
3. Mr. Akhil Gupta appointed as Chief Strategy Officer, bringing over 22 years of experience in the financial services industry.

These appointments are expected to strengthen the company's corporate governance and strategic planning capabilities.

Outlook

DSM Fresh Foods' strong performance in H1 FY26, with revenue already at 73% of the previous full-year figure, indicates robust growth momentum. The company's focus on strengthening its integrated supply chain, expanding its metro presence, and deepening partnerships with HORECA clients positions it well to capitalize on the rapidly formalizing fresh meat and ready-to-cook market in India.

As the company continues to execute its growth strategy, investors and market observers will be watching closely to see if DSM Fresh Foods can maintain this growth trajectory in the coming quarters.