DSM Fresh Foods H1 revenue rises as profit declines

DSM Fresh Foods Limited reported consolidated total revenue of Rs 165.89 crore for the half year ended September 30, 2026, while profit after minority interest declined to Rs 7.30 crore from Rs 7.51 crore in the preceding half year. Total expenses increased to Rs 155.67 crore, exceeding the increase in revenue.

How did DSM Fresh Foods perform in the September 2026 half year?

DSM Fresh Foods recorded revenue from operations of Rs 165.48 crore in the half year ended September 30, 2026, compared with Rs 124.97 crore in the half year ended March 31, 2026. Other income declined to Rs 40.44 lakh from Rs 1.15 crore, resulting in total revenue of Rs 165.89 crore against Rs 136.12 crore.

The increase in total revenue was Rs 29.77 crore between the two reported half-year periods. The March 31, 2026 half-year figures were derived by deducting the unaudited results for the half year ended September 30, 2025 from the audited results for the year ended March 31, 2026, according to the filing.

DSM Fresh Foods prepared these as consolidated results, including Avyom Foodtech Private Limited and DM Fresh Foods FZ-LLC, U.A.E., both 100% subsidiaries, and Varuna Aquatech Private Limited, a 70.96% subsidiary. The September 2026 result included a minority-interest deduction of Rs 17,000 before arriving at profit after minority interest.

Why did DSM Fresh Foods’ profit fall despite higher revenue?

DSM Fresh Foods’ profit after minority interest fell by Rs 20.96 lakh because total expenses rose to Rs 155.67 crore in the September 2026 half year from Rs 114.64 crore in the preceding half. Profit before tax declined to Rs 10.21 crore from Rs 11.49 crore despite the Rs 29.77 crore increase in total revenue.

Cost of goods sold, the largest disclosed expense, increased to Rs 118.34 crore from Rs 93.02 crore. Other expenses rose to Rs 21.48 crore from Rs 10.96 crore, employee benefits expense increased to Rs 9.05 crore from Rs 5.46 crore, and depreciation and amortisation expense rose to Rs 2.94 crore from Rs 1.36 crore.

Finance costs were Rs 4.48 crore for the half year ended September 30, 2026, compared with Rs 4.13 crore in the March half. Changes in finished-goods inventory reduced expenses by Rs 60.74 lakh, compared with a Rs 97.90 lakh reduction in the preceding half, providing a smaller offset to the growth in other cost lines.

What were DSM Fresh Foods’ tax and earnings-per-share results?

DSM Fresh Foods reported current tax expense of Rs 3.05 crore for the September 2026 half year, compared with Rs 3.05 crore in the March 2026 half. Deferred tax was a credit of Rs 13.67 lakh in the September period, whereas the preceding half included deferred-tax expense of Rs 13.13 lakh.

Profit from continuing operations after tax was Rs 7.30 crore for the September half, against Rs 7.51 crore in the March half. The filing reported no profit or loss from discontinuing operations in either period, so the reported profit relates to continuing operations.

Basic and diluted earnings per share, or EPS, were Rs 3.28 on a non-annualised basis in the September half, compared with Rs 5.52 in the March half. Annualised basic and diluted EPS were Rs 6.55 and Rs 6.65 respectively, while equity share capital remained Rs 22.29 crore in both periods.

What changed in DSM Fresh Foods’ balance sheet and cash flow?

DSM Fresh Foods’ consolidated total assets and liabilities rose to Rs 284.00 crore at September 30, 2026, from Rs 194.58 crore at March 31, 2026. Property, plant and equipment increased to Rs 36.22 crore from Rs 7.92 crore, while trade receivables rose to Rs 76.87 crore from Rs 55.63 crore.

Long-term borrowings increased to Rs 30.80 crore at September 30 from Rs 9.13 crore at March 31, while short-term borrowings stood at Rs 79.98 crore at September 30. Inventories rose to Rs 11.17 crore from Rs 8.53 crore, and cash and cash equivalents declined to Rs 4.92 crore from Rs 9.23 crore.

The consolidated cash-flow statement reported net cash used in operating activities of Rs 27.71 crore for the period ended September 30, 2026, compared with Rs 47.84 crore for the year ended March 31, 2026. The September-period operating cash movement included increases in trade receivables of Rs 21.24 crore and long-term loans and advances of Rs 16.04 crore.

Investing activities used Rs 18.44 crore for the period ended September 30, including purchases of fixed assets of Rs 31.60 crore and Rs 13.11 crore from investments. Financing activities generated Rs 41.84 crore, including Rs 24.65 crore from short-term borrowings and Rs 21.67 crore from long-term borrowings, leaving cash and cash equivalents Rs 4.31 crore lower.

How much of DSM Fresh Foods’ IPO proceeds remained unused?

DSM Fresh Foods had utilised Rs 58.25 crore of the Rs 59.06 crore gross proceeds from its October 7, 2025 initial public offering, or IPO, as at September 30, 2026. The unutilised balance was Rs 81.35 lakh, according to the utilisation statement accompanying the consolidated results.

Capital-expenditure utilisation was Rs 10.18 crore against a proposed Rs 10.68 crore, leaving Rs 50.19 lakh unused. Working-capital utilisation was Rs 24.83 crore against a proposed Rs 25.00 crore, leaving Rs 16.74 lakh, while marketing expenditure had Rs 1.69 lakh remaining.

General corporate purpose spending totalled Rs 2.12 crore against a proposed Rs 2.18 crore, leaving Rs 5.64 lakh. Issue expenses were Rs 6.14 crore against a proposed Rs 6.21 crore, leaving Rs 7.10 lakh; the filing does not specify a date for deploying the remaining IPO proceeds.

Conclusion

DSM Fresh Foods increased consolidated total revenue to Rs 165.89 crore in the half year ended September 30, 2026, but higher costs reduced profit after minority interest to Rs 7.30 crore. Cost of goods sold, employee benefits, other expenses, depreciation and finance costs all increased from the preceding half-year period.

The disclosed matter to watch is use of the Rs 81.35 lakh of IPO proceeds remaining at September 30, 2026, including Rs 50.19 lakh allocated to capital expenditure and Rs 16.74 lakh to working capital. The Audit Committee and Board approved the results on November 14, 2026.