Low PE Food Products Stock Jumps 15% As Company Reports 58% YoY Revenue Growth, Expands Retail Network to 200 Outlets; Check Details

On Wednesday, Indian equity benchmark indices traded lower, with the benchmark Nifty 50 index declining 181.05 points, or 0.75 per cent, to 24,006.65. Amid the broader market weakness, DSM Fresh Foods (Zappfresh) share price jumped 14.69 per cent to Rs 77.99 after the company released its business update for the quarter ended June 30, 2026.

DSM Fresh Foods Q1 FY27 Business Update

DSM Fresh Foods reported provisional and unaudited revenue from operations of approximately Rs 74 crore for Q1 FY27, registering a 58 per cent year-on-year growth. Following the successful completion of the Meevaa Foods acquisition in the first week of July 2026, the combined business is operating at an approximate pro-forma quarterly revenue run-rate of Rs 85 crore, representing an 82 per cent YoY increase on a pro-forma basis.

The company stated that the quarter witnessed significant progress in strengthening its omnichannel presence through rapid retail expansion, deeper customer relationships, continued scaling of Meevaa Foods and investments across its integrated farm-to-fork ecosystem. It also highlighted progress in executing its long-term strategy through expansion of its branded consumer business, strengthening backward integration, scaling its aquaculture platform, expanding international distribution and increasing its presence across e-commerce, quick commerce and modern retail channels.
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Business Highlights

During the quarter, the company added more than 70 enterprise customers, strengthening its institutional business across domestic and export markets. It expanded its customer reach through Amazon, Blinkit, modern retail and other omnichannel channels, while commencing Blinkit deliveries in Mumbai.

DSM Fresh Foods also expanded its retail footprint to approximately 200 co-branded retail outlets, surpassing its original FY27 target of 150 outlets ahead of schedule. The company expects the expanded retail network to increase the contribution of its higher-value B2C business during FY27.

The acquisition of Meevaa Foods was completed in the first week of July 2026, with the company continuing to scale the brand across retail, e-commerce and quick commerce platforms in the frozen, ready-to-eat and ready-to-cook categories.

Integrated Farm-to-Fork Ecosystem and Guidance

The company strengthened its integrated aquaculture ecosystem by onboarding additional farmers, partnering with Farmer Producer Organisations (FPOs), adding 10 new sourcing partners, and initiating 270 acres of land aggregation. It now works with more than 1,700 seafood farmers across its sourcing ecosystem and has incorporated Varuna Aquatech Private Limited to support long-term aquaculture development.

On the international front, DSM Fresh Foods expanded its distribution network across the UK, Canada and GCC markets, including onboarding a distribution partner in Dubai.

The company reiterated its long-term guidance of achieving Rs 600 crore in revenue by FY28, with an EBITDA margin of 18–20 per cent, driven by expansion of its branded consumer business, value-added products, omnichannel growth, backward integration and operating leverage across its integrated platform.

Management Commentary

Commenting on the performance, Mr. Deepanshu Manchanda, Managing Director, Zappfresh, said: "We have begun FY27 with strong business momentum, reflecting the resilience of our integrated business model and disciplined execution across the value chain. Our institutional business continues to scale through deeper customer relationships across domestic and export markets, while our consumer brands, particularly Meevaa, continue to gain strong traction in the value-added foods segment. The strategic initiatives undertaken during the quarter further strengthen our sourcing ecosystem, omnichannel distribution capabilities and integrated farm-to-fork platform, strengthening our ability to address the rapidly growing organised fresh protein market. We remain focused on building a scalable, technology-enabled business that consistently delivers superior quality and long-term value for all our stakeholders."

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Disclaimer: The article is for informational purposes only and should not be construed as investment advice.