Melt n Mellow Q2 FY27 EBITDA rose 566% with freezer growth

Melt n Mellow reported EBITDA of Rs 3.53 crore in Q2 FY27, up 566% year on year, as it added 1,472 deep freezers and operated a network of more than 18,750 units. The ice-cream brand recorded a 16.00% EBITDA margin and Rs 22.50 crore in quarterly revenue.

How did Melt n Mellow’s Q2 FY27 profitability change?

Melt n Mellow’s Q2 FY27 EBITDA was Rs 3.53 crore, representing 566% year-on-year growth, while revenue rose 65% year on year to Rs 22.50 crore. The presentation reports a 16.00% EBITDA margin for the quarter, with an improvement of 1,200 basis points. A basis point is one-hundredth of a percentage point, so the reported movement indicates a 12-percentage-point margin improvement from the comparable period.

The quarterly result follows a broader turnaround stated by management. Melt n Mellow was EBITDA-loss-making in FY25 but became EBITDA-positive in FY26, which management says was one year ahead of its original target. The presentation does not disclose FY25 or FY26 revenue, EBITDA amounts, or the original profitability target date, so the reported transition establishes the direction of the change but not its full-year financial scale.

The contrast between 65% revenue growth and 566% EBITDA growth is the presentation’s clearest operating comparison for Q2 FY27. It shows that EBITDA expanded faster than sales during the quarter, alongside the margin increase, although the presentation does not break out costs, pricing, product mix, or capacity utilisation that would quantify the reasons for the change.

How large is Melt n Mellow’s freezer and distribution network?

Melt n Mellow had more than 18,750 deep freezers across retail touchpoints and added 1,472 freezers during Q2. The freezer estate supports a business that is 96% business-to-consumer, or B2C, and 4% business-to-business, or B2B, according to the presentation. Because ice cream requires temperature-controlled storage at the point of sale, the freezer rollout is a disclosed part of the brand’s distribution infrastructure.

The brand also listed more than 205 distributors and 13 company depots across key markets. It reported 95% distributor retention and identified Mumbai, Pune, Hyderabad, Bengaluru, Goa and Nagpur among the markets served. The company says the depots are intended to improve product availability, service efficiency and response time, though it provides no depot-level sales or service metrics.

Melt n Mellow’s stated target is to reach 26,500 deep freezers in FY27, compared with the current base of more than 18,750. Reaching that target would require more than 7,750 additional freezers from the reported base. The presentation frames this rollout as continued investment in cold-chain infrastructure, rather than as a completed deployment, making execution against the FY27 target a material next step.

What products and manufacturing capacity support Melt n Mellow’s expansion?

Melt n Mellow listed more than 196 stock-keeping units, or SKUs, spanning ice-cream cones, kulfi, choco bars, Creamy Bliss tubs and 700 millilitre family packs. Its core lines include 12 cone flavours, six kulfi flavours, six choco-bar flavours, 12 Creamy Bliss tub flavours and 16 family-pack flavours. This range addresses individual servings as well as at-home consumption formats.

The brand introduced six differentiated formats: Novelties, Cakes, Charms, Marvel Bars, Pastries and Zero Added Sugar. These formats total 32 disclosed SKUs, based on six Novelties, six Cakes, four Charms, 11 Marvel Bars, two Pastries and three Zero Added Sugar products. Pack sizes range from 15 millilitres for Charms to 1,000 millilitres for Cakes, while the zero-added-sugar range includes Rich Vanilla and Cashew Delight products in 100-millilitre to 500-millilitre formats.

Manufacturing is located at Aurangabad, also called Sambhaji Nagar in the presentation, with installed ice-cream capacity of 1 lakh litres per day. The facility also has milk-product capacity of 20 metric tonnes per day and bakery capacity of 10 metric tonnes per day. Melt n Mellow cites automated extrusion and stick lines, cone filling, a blast rotary tunnel, homogeniser and pasteuriser as components of the production system, along with an end-to-end cold chain from sourcing to delivery.

Where is Melt n Mellow expanding and what is the next retail plan?

Melt n Mellow entered Tamil Nadu through five clearing-and-forwarding, or CNF, locations covering Vellore, Hosur, Erode, Tiruvannamalai and Salem. The presentation says these locations create a platform for further penetration in the state. This move adds Tamil Nadu to a distribution footprint that already includes markets in western and southern India, but no sales contribution from the new state is disclosed.

The next branded-retail plan is the first “Mellow & Co” franchise-owned, company-operated, or FOCO, store, which the presentation says is expected soon. The source does not provide a launch date, store location, investment amount or planned store count. It therefore identifies a new channel under development rather than a current contributor to Q2 FY27 sales or EBITDA.

Melt n Mellow is also positioning its portfolio around dairy-based ice cream, family packs and reduced-sugar options. The presentation notes that the goods and services tax, or GST, rate on ice cream was reduced to 5% from 18%, effective 22 September 2025. It links the market opportunity to projected Indian ice-cream industry size of Rs 45,000 crore by 2028, while attributing the market figures to industry sources cited in the presentation.

Conclusion

Melt n Mellow’s disclosed Q2 FY27 figures show a financial change alongside a physical distribution buildout: Rs 3.53 crore of EBITDA, 566% year-on-year EBITDA growth and a 16.00% margin, supported by a network exceeding 18,750 freezers. The business had moved from an EBITDA loss in FY25 to positive EBITDA in FY26, before the Q2 FY27 result, while retaining a predominantly B2C mix of 96%.

The central item to watch is delivery against management’s FY27 target of 26,500 deep freezers, compared with more than 18,750 reported currently. Other disclosed milestones are the expected first Mellow & Co FOCO store and further Tamil Nadu development through five CNF locations; the presentation does not yet disclose sales, profitability or timing for either initiative.