Captain Fresh’s FY26 Profit Halves To ₹20 Cr Despite 52% YoY Revenue Jump

IPO-bound B2B seafood brand Captain Fresh’s consolidated net profit declined 54% to ₹19.6 Cr in the financial year ended March 31, 2026 (FY26) from ₹42.4 Cr in FY25.

The drop in profit came despite a 52% jump in consolidated operating revenue to ₹5,093 Cr from ₹3,352.3 Cr in FY25. Including other income, total income stood at ₹5,169 Cr during the fiscal, according to the company’s annual report. 

Meanwhile, its adjusted EBITDA rose 2.7X to ₹371 Cr from ₹136 Cr in the previous fiscal, it said in a statement. 

The startup’s bottom line was weighed down by one-time IPO-related costs, a swing from tax credit to tax expense, higher losses from discontinued operations, and a sharp rise in impairment and financial liability remeasurement charges. 

Despite these expenses, Captain Fresh’s profit before exceptional item and tax jumped nearly fourfold to ₹105.8 Cr in FY26 from ₹27.6 Cr in FY25. 

One-Time Costs Weigh Down PAT

Captain Fresh incurred ₹30 Cr in legal, professional, advisory, regulatory, and other costs related to its proposed IPO. These were booked as an exceptional item in FY26.

The startup also incurred a tax expense of ₹29.4 Cr in FY26 compared to a tax credit of ₹36.2 Cr in the previous fiscal year.

Meanwhile, its loss from discontinued operations increased 73% to ₹26.8 Cr from ₹15.5 Cr. The company classified its Dayscatch, B2B non-factory, and other domestic business segments as discontinued operations after deciding to transfer them as part of a strategic restructuring exercise. 

Captain Fresh’s impairment losses on financial assets surged to ₹92.9 Cr in FY26 from ₹9.5 Cr in FY25. It also booked ₹61.9 Cr towards the remeasurement of a financial liability related to a put option, compared to nil in the previous year.

Nevertheless, Captain Fresh’s gross margin expanded to 23.5% in FY26 from 17% in FY25. 

Captain Fresh had ₹2,300 Cr debt at the end of FY26, of which ₹440 Cr was long-term debt, while the remainder comprised working capital financing. Its debt-to-equity ratio stood at 1.6 during the year, which it is also targeting to reduce to 1.3-1.5. 

The company said it carried higher inventory during FY26 to ensure uninterrupted customer supply amid global disruptions. This, it said, was the reason behind its higher working capital requirements during the fiscal. 

As operating conditions normalise, Captain Fresh expects this inventory build-up to reverse. Captain Fresh said its receivables are insured and that none of them were disputed during the period under review. Its targeting ₹10,000 Cr in revenue in FY27. 

Where Did Captain Fresh Spend In FY26?

The seafood wholesaler’s expenses jumped over 50% to ₹5,063 Cr from ₹3,369.5 Cr in FY25, broadly in line with the growth in its operating revenue. 

Employee Benefit Costs: Expenses under this head increased almost 120% to ₹426 Cr from ₹194.8 Cr in the previous year. Expenses incurred on salaries, bonuses and allowances doubled during the year to ₹382.0 Cr in FY26 from ₹189.1 Cr in FY25. 

The rise came amid a significant expansion in the group’s operations and the acquisition of Spain-based Frime during FY26.

Material & Inventory Costs: The spending under this category jumped 41% to ₹3,898.6 Cr from ₹2,781.4 Cr in FY25.

Freight Charges: Captain Fresh spent ₹143.8 Cr on freight and forward charges during the year under review, up 43% from ₹101 Cr. 

Zooming Into Captain Fresh’s Business 

Founded in 2020 by Utham Gowda, Captain Fresh began as a tech-led B2B seafood supply chain platform and has since expanded into a global packaged seafood business. 

It operates a portfolio of seafood brands across Europe and North America. Its European processing footprint includes Frime in Spain, Koral in Poland, Senecrus in France and CFT in Denmark through a joint venture. In North America, it distributes through CenSea, Ocean Garden and Ocean Edge, largely across foodservice channels.  

The company sources seafood from more than 30 countries across three oceans. In FY26, Ecuador accounted for 17% of sourcing, followed by Indonesia at 15%, India at 12%, and Vietnam at 9%. 

Captain Fresh said it serves nearly 2,500 customers, including more than 50 of the world’s largest seafood buyers.

Captain Fresh’s Delayed IPO Plans

The FY26 performance comes as Captain Fresh continues to prepare for a potential public listing. After converting into a public entity in June 2025, it confidentially pre-filed its DRHP with SEBI for a $400 Mn IPO in August 2025, comprising a $200 Mn fresh issue and a $150-200 Mn offer-for-sale component.

However, it withdrew the IPO papers in December 2025, citing delays in obtaining regulatory clearances for a European acquisition. The company said it planned to refile after securing the approvals.

The acquisition in question was completed in March 2026, when Captain Fresh acquired Spanish tuna processor Frime. However, it is yet to refile its IPO papers. 

The company subsequently raised ₹290 Cr in debt from Blue Earth Capital to scale manufacturing, global distribution and hiring. 

Captain Fresh has raised nearly $250 Mn to date from investors including Accel, Tiger Global, Prosus Ventures, Z47, Evolvence Group, and British International Investment.

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