Scrip ID

ZAPPFRESH

Financial Performance Highlights

H2 FY26 Performance (Half Year Ended March 2026)

  • Revenue: ₹125 crores (100% YoY growth from ₹65 crores in H2 FY25)
  • EBITDA: ₹15.9 crores (42% YoY growth from ₹11.1 crores in H2 FY25)
  • EBITDA Margin: 13%
  • PBT: ₹11.5 crores (43% YoY growth from ₹8 crores in H2 FY25)

Full Year FY26 Performance (Year Ended March 2026)

  • Revenue from Operations: ₹221 crores (69% YoY growth from ₹131 crores in FY25)
  • EBITDA: ₹31 crores (94% YoY growth from ₹16 crores in FY25)
  • EBITDA Margin: Improved to 13.5% from 12.5% in FY25
  • PBT: ₹43.2 crores (269% YoY growth from ₹11.7 crores in FY25)
  • PBT Margin: Improved to 10.4% from 8.9% in FY25
  • PAT: ₹14.4 crores (59% YoY growth from ₹9 crores in FY25)
  • Adjusted PAT (excluding deferred tax impact): ₹18.4 crores

Business Mix and Segment Analysis

Channel Contribution

  • B2B HoReCa: 68% of revenues (services 300+ restaurants and institutional customers)
  • B2C: 32% of revenues

Category Contribution

  • Chicken: Approximately 50% of revenues
  • Mutton and Seafood: Approximately 50% of revenues combined
  • Fish Contribution: Increased from 21% in H1 to 27% in H2 FY26

Strategic Initiatives and Operational Updates

Aquaculture Development

  • Partnership with nearly 300 seafood farmers
  • Development of integrated aquaculture platform across 270 acres of land in India
  • Initiative expected to improve sourcing reliability, traceability, and quality control
  • Expected margin improvement in seafood category over coming years

Meevaa Foods Launch

  • New frozen ready-to-eat brand launched recently
  • Received 5,000 orders within 48 hours of launch
  • Currently operating at ₹30-40 crore annualized run rate
  • Export focus: 90% of business catering to U.S., Canada, and Europe markets
  • Expected to contribute 15-20% of overall revenues in FY27
  • Capacity available for ₹500 crores revenue

Retail Expansion Strategy

  • Local meat shop partnership initiative: Modernizing neighborhood retailers
  • Pilot with 15-20 stores delivered encouraging results
  • Already onboarded approximately 100 stores
  • Targeting 300-400 partner stores by year-end
  • Each store contributes approximately ₹5 lakhs monthly revenue with 8-10% net margin

Technology and Brand Investments

  • Significant investments in consumer engagement and brand visibility
  • Participation in food retail and lifestyle ecosystem events
  • Meevaa "Me First" campaign generated strong engagement
  • Enhanced technology experience for customers

Recognition and Awards

  • IPO Trail Blazer '25 recognition at CII Unicorn Summit 2026
  • Awards in innovation and brand retail partnership at AMA Futurescape 2025
  • Outstanding startup in Agri food sector award
  • Managing Director appointed as Goodwill Ambassador for United Nations Sustainable Development Goals

Social Impact Initiatives

  • Association with Baby Foundation
  • Contributions towards nutrition awareness, women empowerment, and social welfare initiatives
  • Focus on building responsible, inclusive, and sustainable ecosystem

Forward-Looking Guidance

FY27 Targets

  • Revenue growth guidance: 70-80%
  • EBITDA margin improvement target: 3-4%
  • Meevaa Foods expected to contribute 15-20% of revenues
  • Fish and seafood contribution expected to increase to 30-35%
  • Target to maintain B2B/B2C split around 50:50 at steady state

Growth Drivers

  • Scaling of core Zappfresh business
  • Increasing contribution from Meevaa Foods
  • Expansion of HoReCa relationships
  • Deeper penetration in fish and seafood categories
  • Contribution from upcoming adjacent food verticals
  • Retail store network expansion

Geographic Expansion Plans

  • Focus on West and South markets
  • Planning expansion to Pune, Nashik, and markets near Bangalore
  • Expansion through various projects including fish farming and processing setups

Capital Structure and Financial Position

  • Current cash position: ₹20-25 crores
  • Net debt to equity ratio below 0.5x in FY26 (improved from FY25)
  • Good visibility for securing additional debt facilities
  • Working capital requirements impacting cash flow due to business scaling
  • Positive cash flow expected in 2-3 years

Ownership Structure

  • Promoter holding: 28%
  • Warrant exercise planned by Managing Director post-IPO lock-in period

Risk Factors Mentioned

  • Macroeconomic risks including war impacts
  • Export and shipping challenges
  • Raw material price pressures
  • Execution risks in scaling multiple initiatives simultaneously

Conference Call Participants

Management:

  • Mr. Deepanshu Manchanda - Chairman & Managing Director
  • Mr. Saurabh Gandhi - Chief Financial Officer
  • Mr. Akhil Gupta - Chief Strategic Officer
  • Mr. Harsh Agarwal - Founder's Office

Moderator: Ms. Mehal Gogia - Go India Advisors