Zappfresh Owner DSM Fresh Foods Targets ₹600 Crore Revenue by FY28

DSM Fresh Foods Ltd, the BSE SME-listed company that operates the fresh-meat brand Zappfresh, has announced plans to achieve ₹600 crore in revenue by FY28. This target marks nearly a threefold increase from its FY26 turnover of ₹220.8 crore, supported by an expanding retail network, a scaled-up domestic frozen-food business, and increased push into international markets.

The company enters this expansion phase following a period of strong financial performance. In FY26, DSM reported a 69 per cent increase in revenue, while EBITDA climbed 91 per cent to ₹31.1 crore. Net profit for the period rose by 59 per cent to ₹14.3 crore, providing a profitable foundation for the upcoming growth phase.

Deepanshu Manchanda, Founder and Managing Director of DSM Fresh Foods, confirmed the target to reach ₹600 crore by FY28. To achieve this, the company is introducing multiple growth engines alongside its core fresh-meat operations. Zappfresh aims to expand its physical retail presence to 200 stores by the end of the year, while its international frozen-food segment is projected to generate ₹70-80 crore this year.

The physical retail expansion utilizes a partner-store model rather than a capital-heavy, company-owned network. Under this arrangement, local entrepreneurs operate outlets utilizing Zappfresh branding and supply systems, enabling deeper penetration into the mass market.

Alongside physical stores, Zappfresh is broadening its product basket. In the domestic market, the company is exploring offerings such as spices, roomali roti, and parathas through local meat shops. It also maintains institutional relationships, supplying parathas to Domino's for use in tacos. Chicken remains the company's largest category at 50 per cent of the business, followed by fish and mutton.

Unlike many quick-commerce grocery models, Zappfresh is deliberately avoiding 10-minute delivery promises. The company relies on a two-hour delivery slot, which allows adequate time for sorting, grading, collection, and inventory management to maintain supply chain robustness and protect profit margins.

International markets form another key pillar for scale. DSM is targeting regions including the UK, Europe, US, and Canada. Additionally, a recently signed memorandum of understanding with a Dubai distributor will extend its footprint into the UAE and Saudi Arabia. The company tailors its frozen portfolio to individual export markets, offering items such as baingan bharta for the US, and momos, spring rolls, and samosas for Canada. Its product line centers on clean-label, protein-rich foods without added chemicals and preservatives.

Despite the emergence of premium D2C food brands, DSM continues to prioritize mass-market reach and value over a restricted digital consumer base. The company expects profit margins to remain consistent with the previous year despite raw material pressures, with execution across retail, domestic frozen foods, and international channels acting as the core drivers toward its FY28 target.

"DSM Fresh Foods demonstrates how careful unit economics and a focus on profitability can successfully guide a BSE SME-listed company toward ambitious scaling. By opting for a partner-store model instead of a capital-heavy retail rollout, and avoiding the unsustainable margins often associated with ultra-fast delivery, Zappfresh is building a resilient foundation. Their balanced approach of expanding domestic mass-market categories alongside tailored international frozen-food offerings provides a practical blueprint for sustainable growth in the food supply sector." — Dr. Shishir Gupta, Founder & CEO, StartupLanes