Zappfresh Q1 Revenue Jumps 58% to ₹74 Crore; Retail Expansion and Blinkit Fuel Growth

DSM Fresh Foods Ltd, the parent company of omnichannel meat and seafood brand Zappfresh, reported a strong business update for Q1 FY27, with revenue from operations rising 58% year-on-year to around ₹74 crore. The company attributed the growth to rapid retail expansion, stronger omnichannel distribution, and increasing demand from both consumer and institutional customers.

Following the completion of the Meevaa Foods acquisition in early July, DSM Fresh Foods said its combined business is now operating at a pro forma quarterly revenue run rate of approximately ₹85 crore. The company also reaffirmed its ambitious FY28 revenue target of ₹600 crore, supported by continued retail expansion, value-added products, and deeper farm-to-fork integration.

Zappfresh Q1 FY27 Business Highlights

DSM Fresh Foods delivered strong growth across multiple business segments during the June quarter.

Revenue from operations increased to around ₹74 crore, while the acquisition of Meevaa Foods has further strengthened the company's scale and product portfolio.

Key Business Metrics

Metric	Q1 FY27
Revenue from Operations	₹74 crore
YoY Revenue Growth	58%
Pro Forma Quarterly Revenue Run Rate (Including Meevaa)	₹85 crore

Retail Expansion Surpasses FY27 Target

Zappfresh significantly expanded its offline retail presence during the quarter.

The company increased its network to nearly 200 co-branded retail outlets, exceeding its original FY27 target of 150 outlets well ahead of schedule.

Management said it plans to accelerate store expansion further to increase the contribution of its higher-margin B2C business.

Retail Expansion

Particular	Details
Co-branded Retail Outlets	Nearly 200
FY27 Target	150 outlets
Status	Target surpassed ahead of schedule

Enterprise and Omnichannel Growth

DSM Fresh Foods continued expanding across institutional and digital sales channels.

During the quarter, the company:

• Added more than 70 enterprise customers across domestic and export markets.
• Expanded distribution across e-commerce, quick commerce, and modern retail.
• Started Blinkit deliveries in Mumbai, strengthening its quick commerce presence.

Distribution Highlights

Particular	Performance
New Enterprise Customers	70+
Channels Expanded	E-commerce, Quick Commerce, Modern Retail
New Quick Commerce Expansion	Blinkit launches in Mumbai

Strengthening Supply Chain

The company also invested in expanding its sourcing ecosystem to improve supply chain efficiency and support long-term growth.

Key initiatives included:

• Onboarding 10 new sourcing partners.
• Initiating 270-acre land aggregation for backward integration.
• Working with more than 1,700 seafood farmers.
• Incorporating Varuna Aquatech Pvt. Ltd. to strengthen its aquaculture platform.

Supply Chain Initiatives

Initiative	Details
New Sourcing Partners	10
Land Aggregation	270 acres
Seafood Farmers	1,700+
New Subsidiary	Varuna Aquatech Pvt. Ltd.

International Expansion

DSM Fresh Foods continued expanding its international footprint during the quarter.

The company strengthened distribution across:

• United Kingdom
• Canada
• GCC countries

It also onboarded a new distribution partner in Dubai, supporting future export growth.

Global Expansion

Region	Update
United Kingdom	Distribution Expanded
Canada	Distribution Expanded
GCC Markets	Distribution Expanded
Dubai	New Distribution Partner Added

FY28 Outlook

The company reaffirmed its long-term growth guidance.

FY28 Guidance

Metric	Guidance
Revenue Target	₹600 crore
EBITDA Margin	18%–20%

Management expects growth to be driven by:

• Continued retail expansion.
• Higher contribution from value-added products.
• Expansion of the B2C business.
• Deeper backward integration across its farm-to-fork platform.
• Benefits from the Meevaa Foods acquisition.

Key Growth Drivers

• 58% year-on-year revenue growth.
• Meevaa Foods acquisition enhances scale.
• Retail footprint expanded beyond FY27 target.
• Growing enterprise customer base.
• Expansion into quick commerce and exports.
• Strong FY28 revenue guidance.

How much revenue did Zappfresh report in Q1 FY27?

DSM Fresh Foods reported around ₹74 crore in revenue from operations during Q1 FY27, representing 58% year-on-year growth.

What is the company's current quarterly revenue run rate?

Following the Meevaa Foods acquisition, the combined business is operating at a pro forma quarterly revenue run rate of approximately ₹85 crore.

How many retail outlets does Zappfresh operate?

The company has expanded to nearly 200 co-branded outlets, surpassing its FY27 target of 150 stores.

What is DSM Fresh Foods' FY28 revenue target?

The company has reiterated its target of ₹600 crore in revenue with an expected EBITDA margin of 18%–20%.

What supported Zappfresh's growth during Q1 FY27?

Growth was driven by retail expansion, omnichannel distribution, enterprise customer additions, quick commerce expansion, export growth, and supply chain strengthening.