DSM Fresh Foods Ltd (544568)
Latest quarterly results (H2 FY26)
In its latest reported quarter, H2 FY26, DSM Fresh's revenue was ₹125 Cr (+95.3% year on year, +30.2% on the previous half-year), and net profit ₹7.0 Cr (+0.0% year on year); the operating margin was 12.8%.
| H2 FY26 (₹ Cr) | Value | YoY vs H2 FY25 | vs prev. half |
|---|---|---|---|
| Revenue | ₹125 | +95.3% | +30.2% |
| Operating profit | ₹16.0 | +45.5% | +6.7% |
| Net profit | ₹7.0 | +0.0% | +0.0% |
| EPS (₹) | 3.29 | -18.2% | -23.3% |
| Operating margin | 12.8% | — | — |
📢 Recent Corporate Announcements
DSM Fresh Foods Limited (Zappfresh) has scheduled a Board of Directors meeting on September 02, 2026. The board will evaluate a proposal for raising funds via equity shares, convertible securities, rights/preferential issues, or other permissible modes. Additionally, the board will consider and approve the DSM Fresh Foods Employees Stock Option Scheme, 2026 (ESOS). In compliance with insider trading regulations, the trading window is closed from August 27, 2026 to September 04, 2026.
- Board meeting scheduled on September 02, 2026 to consider fundraising proposals
- Fundraise modes under evaluation include equity shares, convertible securities, and rights/preferential basis
- Board to consider approving the DSM Fresh Foods Employees Stock Option Scheme, 2026 (ESOS)
- Trading window closed from August 27, 2026 till September 04, 2026
DSM Fresh Foods Ltd has informed the exchanges about an upcoming international Non-Deal Roadshow scheduled for August 27 and August 28, 2026, in London, UK. The company's management will conduct one-on-one and group meetings with investors and analysts starting at 1:30 PM IST. The filing confirmed that discussions will be confined strictly to publicly available information with no unpublished price-sensitive information shared.
- Non-Deal Roadshow scheduled across two dates: August 27, 2026 – August 28, 2026
- Meeting venue set for London, UK, commencing at 01:30 P.M. (I.S.T.)
- Format includes both One on One and Group Meetings with analysts/investors
- No unpublished price-sensitive information (UPSI) will be shared during the meet
DSM Fresh Foods Ltd has scheduled a non-deal roadshow to meet various analysts and investors in Hisar, Haryana on August 22, 2026, and August 24, 2026, starting at 04:00 PM IST. The meetings will be conducted in both one-on-one and group formats. The company stated that discussions will rely exclusively on publicly available information without sharing any unpublished price-sensitive information (UPSI).
- Non-deal roadshow scheduled across two days: August 22, 2026 and August 24, 2026
- Meetings will take place at Hisar, Haryana starting at 04:00 PM IST
- Format includes both One-on-One and Group Meetings
- No unpublished price-sensitive information (UPSI) will be shared during the roadshow
DSM Fresh Foods Ltd held its 1st Extra-Ordinary General Meeting (EGM) on July 25, 2026, to seek shareholder approval for a ₹100 crore limit for loans, guarantees, or securities under Section 185. This proposed limit is substantial, representing approximately 86% of the company's current net worth of ₹116 crore. The resolution is a critical enabling step for the company's stated strategy of aggressive inorganic growth and acquisitions. No queries were raised by the 22 members present, and final voting results are pending.
- Proposed a special resolution for loans, guarantees, or security up to ₹100 Crores under Section 185.
- The ₹100 Cr limit represents ~86% of the company's current Net Worth of ₹116 Cr.
- Remote e-voting was conducted between July 22, 2026, and July 24, 2026.
- Total of 22 members, including the Promoter group, attended the meeting via video conferencing.
- The meeting concluded in 8 minutes (03:30 P.M. to 03:38 P.M.) with no queries raised by members.
DSM Fresh Foods (Zappfresh) has scheduled a Non-Deal Roadshow in Mumbai on July 28, 2026. The company will hold one-on-one and group meetings with institutional investors, including Lucky Investment Managers and AlfAccurate Advisors. This outreach comes as the company maintains a TTM revenue of ₹352 Cr and pursues an aggressive growth strategy to reach ₹1,000 Cr in revenue. No unpublished price-sensitive information is expected to be shared during these sessions.
- Meetings scheduled for July 28, 2026, in Mumbai hosted by Go India Advisors
- Participation from institutional firms including Lucky Investment Managers and AlfAccurate Advisors
- Company currently operates at a TTM revenue of ₹352 Cr with a 13.4% OPM
- Management maintains a long-term revenue target of ₹1,000 Cr through organic and inorganic routes
DSM Fresh Foods reported a strong Q1 FY27 with revenue growing 58% YoY to ₹74 crore. Following the acquisition of Meevaa Foods in July 2026, the pro-forma quarterly revenue run-rate has increased to ₹85 crore. The company significantly accelerated its retail expansion, reaching 200 co-branded outlets, which already exceeds its original FY27 target of 150 outlets. Management reiterated its long-term goal of reaching ₹600 crore in revenue by FY28 with 18-20% EBITDA margins.
- Revenue from operations grew 58% YoY to approximately ₹74 crore in Q1 FY27
- Pro-forma quarterly revenue run-rate reached ₹85 crore including the Meevaa Foods acquisition
- Retail footprint expanded to 200 co-branded outlets, surpassing the FY27 target of 150 ahead of schedule
- Added 70+ new enterprise customers and initiated 270-acre land aggregation for aquaculture
- Working with over 1,700 seafood farmers to strengthen backward integration
DSM Fresh Foods (Zappfresh) has finalized the 100% acquisition of Avyom Foodtech Private Limited for a cash consideration of ₹1 Lakh. Avyom is a related party entity with a modest turnover of ₹14.90 Lakhs in FY25, but the acquisition is a strategic move to facilitate a subsequent slump sale acquisition of Ambrozia Frozen Foods. This structure allows Zappfresh to expand into the ready-to-eat, ready-to-cook, and frozen food segments. While the initial investment is small, the long-term value depends on the successful integration of the Ambrozia business.
- Acquired 100% equity stake in Avyom Foodtech for a total cash consideration of ₹1 Lakh
- Target company Avyom Foodtech reported a turnover of ₹14.90 Lakhs for FY 2024-25
- Strategic intent for Avyom to acquire Ambrozia Frozen Foods' operational business via a slump sale
- Avyom's historical turnover peaked at ₹19.56 Lakhs in FY 2023-24 before declining in FY 2024-25
- The acquisition falls under related party transactions as promoters and directors are common to both entities
Financial Performance
Revenue Growth by Segment
Total revenue grew 43% YoY to INR 95.85 Cr in H1 FY26. The revenue is split equally with 50% coming from the HoReCa (B2B) segment and 50% from the Online (B2C) segment. The B2B segment saw significant momentum, while the online business maintained a high repeat ratio of 88-90%.
Geographic Revenue Split
The Mumbai (West) region has seen rapid growth, now contributing 20-21% of total revenue compared to just 5-6% in the previous year. The company is also established in South India through its acquisition of Sukos Foods (Dr. Meat).
Profitability Margins
Gross margin improved significantly to 34% in H1 FY26 from 29% in H1 FY25, a 490 bps increase. PAT margin rose to 7% from 4% YoY, representing a 369 bps improvement. These gains were driven by better product mix and procurement optimization.
EBITDA Margin
EBITDA margin stood at 16% in H1 FY26, a substantial 783 bps increase from 8% in H1 FY25. Absolute EBITDA grew 188% YoY to INR 14.92 Cr from INR 5.18 Cr.
Capital Expenditure
The company raised INR 54 Cr through its IPO, which is being deployed for capacity expansion, technology enhancement, and working capital optimization. Specific historical capex figures were not disclosed, but the company is targeting inorganic growth through acquisitions 10x the size of previous deals.
Credit Rating & Borrowing
Not disclosed in available documents; however, the company maintains a conservative leverage position with a Debt-to-Equity ratio of 0.65 and a Net Debt-to-Equity ratio of 0.63 as of September 2025.
Operational Drivers
Raw Materials
The primary raw materials are fresh chicken, mutton, and seafood (fish), which collectively account for the majority of the cost of goods sold (COGS) of INR 63.68 Cr (66% of revenue).
Import Sources
Sourcing is primarily domestic, utilizing a 'Farm-to-Fork' model. The company partners with innovative farms and operates hygienic slaughterhouses to ensure antibiotic-free and fresh supply.
Key Suppliers
Not specifically named, but the company maintains partnerships with over 300 HoReCa clients and sources directly from a network of farms to minimize middlemen.
Capacity Expansion
Current expansion is focused on deepening presence in Mumbai and South India. The company plans to replicate its turnaround playbook (e.g., growing Dr. Meat revenue 4x within a year) in new markets and is evaluating two major acquisitions in the audit stage.
Raw Material Costs
COGS stood at INR 63.68 Cr in H1 FY26. Procurement strategies involve 'creating depth' in categories like fish and mutton to achieve volume-based margin improvements (fish margins rose from 16% to 23%).
Manufacturing Efficiency
The company focuses on unit economics and sustainable growth. Efficiency is driven by technology-led logistics and a 90% month-on-month repeat ratio in the online business.
Logistics & Distribution
Distribution is handled via an omnichannel model. Average Order Value (AOV) for online orders is approximately INR 540, with over 100,000 monthly orders.
Strategic Growth
Expected Growth Rate
43%
Growth Strategy
The company aims to become a INR 1,000 Cr revenue business through a mix of organic growth and aggressive inorganic acquisitions. It is currently auditing two potential acquisitions expected to be 10x larger than previous ones. Strategy includes deepening leadership in fresh/packaged meat, expanding the omnichannel footprint, and entering new product categories like snacking and dry ready-to-cook items.
Products & Services
Fresh and packaged chicken, mutton, seafood (fish), and meat-based snacking products.
Brand Portfolio
Zappfresh, Dr. Meat (Sukos Foods), and Bonsaro.
New Products/Services
Foraying into export-oriented snacking and dry ready-to-cook categories to diversify the portfolio beyond fresh meat.
Market Expansion
Expanding from North India into West (Mumbai) and South India. Mumbai now accounts for 20-21% of revenue.
Market Share & Ranking
Not specifically ranked, but the company claims a leadership position in the fresh-and-packaged-meat segment in its operating regions.
Strategic Alliances
Deepened partnerships with over 300 HoReCa clients and collaborations for omnichannel distribution.
External Factors
Industry Trends
The industry is shifting from unorganized local meat shops to organized, hygienic, and branded omnichannel players. The market is growing at a steady pace, and Zappfresh is positioning itself as a 'proficorn'—a profitable large-scale business.
Competitive Landscape
Competes with both unorganized local vendors and other branded meat startups/unicorns in the private sector.
Competitive Moat
Moat is built on a 'Farm-to-Fork' supply chain, high customer retention (90% repeat rate), and a proven M&A playbook for turning around loss-making local brands. Sustainability is driven by high quality standards (antibiotic-free) and technology integration.
Macro Economic Sensitivity
Sensitive to consumer spending trends in urban markets and food inflation, particularly in the poultry and livestock sectors.
Consumer Behavior
Increasing preference for fresh, hygienic, and responsibly sourced meat delivered through online channels.
Geopolitical Risks
Minimal for current domestic operations, but future export initiatives for snacking products may face trade barriers.
Regulatory & Governance
Industry Regulations
Subject to food safety and hygiene standards (FSSAI) and regulations governing slaughterhouses and cold chain logistics.
Environmental Compliance
Not specifically disclosed, though the company emphasizes responsibly sourced meat and hygienic slaughterhouse operations.
Taxation Policy Impact
The company is subject to standard corporate tax rates. It recently faced an 'Angel Tax' demand related to equity investments being miscategorized as income.
Legal Contingencies
The company is contesting a pending tax demand related to 'Angel Tax' where equity investment was treated as income by the income tax department; the matter is currently under evaluation and assessment.
Risk Analysis
Key Uncertainties
Integration risks of large-scale acquisitions (10x previous size) and the outcome of pending tax litigation could impact cash flows.
Geographic Concentration Risk
High concentration in North India, though diversifying into Mumbai (21%) and South India.
Third Party Dependencies
Dependency on farm partners for antibiotic-free supply and HoReCa clients for 50% of revenue.
Technology Obsolescence Risk
Risk is mitigated by ongoing technology enhancements using IPO funds to maintain the online platform and app (1.4 lac downloads).
Credit & Counterparty Risk
Receivable days increased to 31 days (and mentioned as 69 days in some contexts) due to extended credit terms provided to B2B/HoReCa clients to support sales momentum.
