Scrip ID

ZAPPFRESH

Financial Performance (H2 FY26 vs H2 FY25)

  • Revenue from Operations: ₹1,564 Mn (83.6% growth YoY)
  • Cost of Goods Sold: ₹852 Mn
  • Gross Profit: ₹712 Mn
  • Other Expenses: ₹333 Mn (13.9% growth YoY)
  • EBITDA: ₹311 Mn (90.6% growth YoY)
  • EBITDA Margins: 19.9% (150 bps improvement)
  • Depreciation: ₹22 Mn (41.1% growth YoY)
  • Other Income: ₹15 Mn (1101.2% growth YoY)
  • Finance Cost: ₹69 Mn (79.1% growth YoY)
  • Profit Before Tax: ₹232 Mn (98.8% growth YoY)
  • PBT Margins: 10.5% (158 bps improvement)
  • Tax: ₹88 Mn (236.3% growth YoY)
  • Profit After Tax: ₹143 Mn (58.8% growth YoY)
  • PAT Margins: 6.5% (41 bps decline)
  • EPS Diluted: ₹7.46 (35.4% growth YoY)

Full Year FY26 Performance

  • Revenue from Operations: ₹2,208 Mn
  • EBITDA: ₹474 Mn
  • EBITDA Margins: 21.5%
  • Profit Before Tax: ₹349 Mn
  • Profit After Tax: ₹213 Mn
  • PAT Margins: 9.6%

Management Commentary

Mr. Deepanshu Manchanda, Managing Director & Chairman, provided commentary highlighting:

  • Zappfresh was founded in 2015 with a focus on fresh, safe, and transparently sourced meat
  • Strategic expansion across categories, sourcing ecosystems, and distribution channels over past six months
  • Entry into ready-to-eat segment through Meevaa Foods following Ambrozia acquisition
  • Strengthened seafood backward integration through FPO-led sourcing model and integrated aquaculture platform
  • Expansion of retail partnership network for deeper market penetration
  • Focus on scaling responsibly, deepening partner relationships, and building sustainable food platform

Business Model Overview

Vertically integrated farm-to-fork fresh food platform with end-to-end quality control featuring:

  • Direct farmer procurement bypassing wholesales/trades (12-14% margin benefit)
  • In-house secondary processing covering cutting, portioning, and packing
  • Standardized SKUs ensuring consistency and storage efficiency
  • Omnichannel ordering via app, website, and stores
  • Cold-chain dispatch with third-party logistics

Strategic Priorities

1. Acqui-Hiring Model: Successful acquisitions including Dr. Meat (Sukos Food Pt. Ltd., July 2023), Bonsaro (Majestic Aliments India Pvt. Ltd., July 2024), and Ambrozia Frozen Foods Pvt Ltd.

2. Growth Playbook: Four-fold scale-up strategy including:

  • Pin-code led expansion within existing geographies
  • Meevaa Foods brand scale-up through Zappfresh network
  • Export opportunity build-out into Canada, Middle East, US, and Europe
  • E-commerce expansion on Amazon and Big Basket

3. Asset-Light Retail Network: Low Capex, partner-led expansion

4. Product Portfolio Expansion: Introduction of more SKUs complementary to current portfolio, upcoming acquisitions to diversify product profile

5. Backward Integration in Seafood:

  • Signed MoU with Ghaziabad-based aquaculture farm operator covering ~270 acres in Village Masurie
  • Developing ~500 tons annual capacity aquaculture project
  • 300-farmer sourcing alliance via FPO model
  • Seafood contributes ~27% of non-veg revenue (targeting ~30% mix)
  • Expected ~200-300 bps gross margin uplift in seafood vertical

Operational Highlights

  • Curated SKU assortment improving margins through scale, mix, and efficiency
  • HoReCa partner network with long-term, strong institutional customer relationships
  • Diversified geographic revenue split with balanced state-wise contribution
  • 360° branding & marketing strategy across all consumer touchpoints
  • Now live on leading e-commerce platforms including Amazon and Big Basket

Awards & Recognitions

  • CII IPO Trailblazer 2025 Award for governance, sustainable growth, and long-term impact
  • AMA FutureScape 2025 Winner for Innovation in Brand Retailer Partnership and Outstanding Start-up in Agri-Food Sector
  • IIMSAM Recognition for Mr. Manchanda as Goodwill Ambassador to advocate for UN Sustainable Development Goals

CSR Initiatives

  • Empowering Women Farmers Through Sustainable Livelihoods with technology access and financial support
  • Direct procurement of 1,000 kg of poultry from women farmers ensuring fair pricing
  • Empowering Girls Through Beti Foundation with education support and hygiene drives
  • Community welfare support including financial, food, and in-kind assistance

Leadership Team

  • Mr. Deepanshu Manchanda: Managing Director & Chairman (16+ years in strategy and partnerships)
  • Mrs. Priya Aggarwal: Director (13+ years in brand strategy and communication)
  • Mrs. Suman Chaudhary: Independent Director (22+ years in agribusiness sector)
  • Mr. Achal Kapoor: Independent Director (Company secretary with 9+ years legal experience)
  • Mr. Akhil Gupta: Chief Strategic Officer (22+ years in financial services)
  • Mr. Mohammad Arif Khan: Director (10+ years in technology and fintech)
  • Mr. Surendra Gond: Chief Operating Officer (Dual MBAs with LLB and LLM)
  • Mr. Devender Gupta: Chief Human Resource Officer (30+ years experience, ex-Haldiram and Dabur)

Historical Financials (FY25 vs FY26)

  • Revenue from Operations: ₹1,456 Mn (FY25) to ₹2,208 Mn (FY26) - 51.6% growth
  • Gross Margin: 34.8% (FY25) to 29.2% (FY26)
  • Employee Cost: ₹70 Mn (FY25) to ₹98 Mn (FY26)
  • Other Operating Expenses: ₹223 Mn (FY25) to ₹235 Mn (FY26)
  • EBITDA: ₹163 Mn (FY25) to ₹474 Mn (FY26) - 190.8% growth
  • EBITDA Margins: 12.5% (FY25) to 21.5% (FY26)
  • Profit After Tax: ₹90 Mn (FY25) to ₹213 Mn (FY26) - 136.7% growth
  • PAT Margins: 6.9% (FY25) to 9.6% (FY26)

Balance Sheet Highlights (FY26)

  • Equity: ₹223 Mn
  • Reserves & Surplus: ₹1,160 Mn
  • Long term Borrowings: ₹91 Mn
  • Property, plant and equipment: Details not fully quantified in disclosure

Cash Flow Statement (FY26)

  • Cash Flow From Operations: Not fully quantified
  • Cash Flow From Investments: ₹786 Mn
  • Net Cash Flow: Not fully quantified