Zappfresh, operated by DSM Fresh Foods Limited, has made a strong start to FY27 with impressive first-quarter results. The company reported provisional revenue of around ₹74 crore for the quarter ended June 30, 2026, showing a 58% year-on-year (YoY) growth.
The company says this growth was supported by its expansion in retail, B2B business, exports, and the launch of new food categories. Zappfresh has also completed the acquisition of Meevaa Foods, which is expected to strengthen its position in the ready-to-eat (RTE) and ready-to-cook (RTC) food market.
Zappfresh Posts Strong Q1 FY27 Results, Meevaa Foods Adds More Growth
According to the company’s provisional and unaudited financial update, Zappfresh earned around ₹74 crore in revenue during Q1 FY27. This is 58% higher than the revenue reported in the same quarter last year.
In the first week of July 2026, the company completed the acquisition of Meevaa Foods. After adding this business, Zappfresh’s combined operations are now running at a pro-forma quarterly revenue of nearly ₹85 crore. This represents an estimated 82% year-on-year growth.
The deal was first approved in January 2026 when DSM Fresh Foods decided to buy a 51% controlling stake in Avyom Foodtech Private Limited (AFPL) by investing ₹7.5 crore. AFPL had earlier recorded peak annual revenue of around ₹16 crore.
As part of the transaction, AFPL also purchased the operating food processing business of Ambrozia Frozen Foods. The deal included nearly five acres of land, a working food processing plant, and related machinery.
With this acquisition, Zappfresh has officially entered the ready-to-eat and ready-to-cook food segment under the Meevaa Foods brand. The company has expanded beyond fresh meat and now offers frozen vegetarian and non-vegetarian snacks.
The new brand received a positive response from customers. Meevaa Foods recorded more than 5,000 orders within just 48 hours of its launch in the Delhi NCR region.
Retail Expansion, B2B Growth and Stronger Supply Chain Support Business
During the first quarter, Zappfresh continued to expand its retail network. The company increased its presence to around 200 co-branded partner outlets, crossing its original FY27 target of 150 outlets much earlier than planned.
The company also added more than 70 new enterprise customers across domestic and export markets. At the same time, it expanded its online reach through Amazon, modern retail stores, and started Blinkit deliveries in Mumbai to reach more customers.
To strengthen its seafood business, Zappfresh launched a new company called Varuna Aquatech Private Limited. This platform will help build its aquaculture business and improve seafood sourcing over the long term.
The company also started a 270-acre land aggregation project and added 10 new sourcing partners during the quarter. Zappfresh now works with more than 1,700 seafood farmers and several Farmer Producer Organizations (FPOs), helping create a stronger farm-to-consumer supply chain.
International expansion also remained an important focus. The company strengthened its distribution network in the UK, Canada, and GCC countries and added a new distribution partner in Dubai.
Earlier, Zappfresh had announced plans to expand further into the Middle East and North Africa (MENA) region, including Dubai, Saudi Arabia, and Egypt. The company is targeting USD 10 million in revenue from the region during its first year. To support this plan, it intends to invest around USD 1 million in processing units and dark stores while exploring a joint venture with a major food company in the Middle East.
Shares Rise as Company Repeats FY28 Revenue Target
The company’s latest business update received a positive response from investors. After the announcement, DSM Fresh Foods shares rose between 12% and nearly 15% on the BSE, with the stock trading between about ₹76 and ₹78.
Even after this rise, the stock is still around 63% below its 52-week high of ₹208. It is currently trading at a price-to-earnings (P/E) ratio of around 11.86, while the company’s market value stands at about ₹170.5 crore.
The strong first-quarter performance follows a successful FY26. During the last financial year, Zappfresh’s operating revenue increased 69% to ₹220.8 crore, while its Profit After Tax (PAT) grew 59% to ₹14.3 crore. The B2B business contributed around 68% of the company’s total revenue. Chicken accounted for 50% of sales, seafood contributed 27%, and mutton made up the remaining 23%.
Looking ahead, the company has repeated its target of reaching ₹600 crore in revenue by FY28 with an expected EBITDA margin of 18% to 20%. Managing Director Deepanshu Manchanda also said the company plans to invest around ₹10 crore over the next two to three years to expand its retail, HoReCa, and digital distribution network. The company believes these investments and its expansion plans will help it achieve four to five times growth in the coming years.