Yu Foods’ Revenue Doubles To ₹75 Cr In FY26: CEO Bharat Bhalla

D2C instant food brand Yu Foods’ revenue more than doubled in FY26. Cofounder and CEO Bharat Bhalla told Inc42 that the brand’s operating revenue zoomed 114% to ₹75 Cr from ₹35 Cr in FY25. 

The cofounder said that the startup registered growth in sales throughout the fiscal year, with its sales touching ₹10 Cr in March.

Meanwhile, Yu Foods’ bottom line remained largely flat even as the startup continued to spend on expansion. Its net loss for FY26 was about ₹8 Cr, slightly higher than the ₹7.7 Cr in the previous fiscal. EBITDA margin for the fiscal year improved to about -4%.

Founded in 2021 by former investment bankers Bhalla and Varun Kapur, Yu Foods sells ready-to-eat instant meal bowls, including pasta, noodles, and more. It has raised an equity funding of about $12 Mn to date from Asian Paints promoter group, Startup India Seed Fund, and Hardik Pandya.

Bhalla said about 40% of the brand’s sales are currently driven by performance marketing, while the remaining come organically. Marketing spend typically accounts for about 10-12% of revenue, though mature products require less spending.

He said that the top line growth in FY26 came largely from higher sales of existing products like whole wheat noodles, Korean ramen, and beverages, rather than new launches. 

The startup did not expand into new geographies during the year. Its operations remain concentrated in North India and parts of South India, with limited presence in western and eastern markets. 

Instead of entering new regions, Bhalla said Yu Foods focused on selling more through the same channels and in the same markets. Quick commerce platforms such as Blinkit and Zepto have emerged as a key sales channel for the brand, driving the majority of its revenue. 

To support rising demand, Yu Foods expanded its manufacturing setup in the last fiscal. The startup currently operates a facility of about 50,000 sq ft and works with three dedicated beverage bottling plants. 

Yu Foods raised a debt of about $3 Mn in 2026. Bhalla said the brand may look to raise an equity round of about $5 Mn in FY27. 

Going ahead, Yu Foods expects quick commerce to remain its main growth channel. The brand also plans to gradually expand into new product categories once the current portfolio reaches stable margins. 

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