Yu Foods, a direct-to-consumer instant food brand, has announced that its revenue more than doubled in fiscal year 2026. CEO and cofounder Bharat Bhalla reported to Inc42 that the company’s operating revenue increased by 114%, reaching ₹75 Cr, up from ₹35 Cr in FY25.
Bhalla noted that sales grew consistently throughout the year, culminating in ₹10 Cr in sales in March.
Despite the revenue growth, Yu Foods’ bottom line remained relatively stable as the company continued to invest in expansion. The net loss for FY26 was approximately ₹8 Cr, slightly higher than the ₹7.7 Cr reported in the previous fiscal year. However, the EBITDA margin improved to approximately -4% for the year.
Founded in 2021 by former investment bankers Bharat Bhalla and Varun Kapur, Yu Foods specializes in ready-to-eat instant meal bowls, including pasta and noodles. The company has raised approximately $12 million in equity funding to date, with investments from the Asian Paints promoter group, Startup India Seed Fund, and Hardik Pandya.
Bhalla stated that performance marketing currently drives about 40% of the brand’s sales, with the remainder coming from organic sources. Marketing expenses typically account for 10-12% of revenue, although mature products require less investment.
The CEO added that the revenue growth in FY26 was primarily driven by increased sales of existing products such as whole wheat noodles, Korean ramen, and beverages, rather than from the introduction of new products.
Yu Foods did not expand into new geographic areas during the year, with operations mainly concentrated in North India and parts of South India and a limited presence in western and eastern markets.
Instead of expanding into new regions, Yu Foods focused on increasing sales through existing channels and markets. Quick commerce platforms like Blinkit and Zepto have become key sales channels for the brand, driving a significant portion of its revenue.
To support the increasing demand, Yu Foods expanded its manufacturing capabilities in the last fiscal year. The company currently operates a 50,000 sq ft facility and partners with three dedicated beverage bottling plants.
In 2026, Yu Foods raised approximately $3 million in debt. Bhalla indicated that the company may seek to raise an equity round of approximately $5 million in FY27.
Looking ahead, Yu Foods expects quick commerce to remain its primary growth channel and plans to gradually expand into new product categories once the current portfolio achieves stable margins.
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