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

Yu Foods, a D2C instant food brand, has experienced significant growth in its revenue, doubling it to ₹75 crore in the fiscal year 2026 (FY26). This marks an impressive 114% increase from the previous fiscal year, when the revenue stood at ₹35 crore. The co-founder and CEO, Bharat Bhalla, shared these details with Inc42, highlighting the brand's strong performance despite facing challenges.

Bhalla explained that Yu Foods registered growth in sales throughout the fiscal year, with sales reaching ₹10 crore in March. Despite this impressive top-line growth, the startup's net loss for FY26 was around ₹8 crore, slightly higher than the ₹7.7 crore in the previous fiscal year. The EBITDA margin for the fiscal year improved to about -4%, indicating a gradual improvement in the company's financial health.

Founded in 2021 by former investment bankers Bharat Bhalla and Varun Kapur, Yu Foods specializes in ready-to-eat instant meal bowls, including pasta, noodles, and beverages. The startup has raised an equity funding of approximately $12 million to date from investors such as the Asian Paints promoter group, Startup India Seed Fund, and Hardik Pandya.

Bhalla mentioned that around 40% of the brand's sales are currently driven by performance marketing, while the remaining sales come organically. Marketing spend typically accounts for about 10-12% of revenue, though mature products require less spending. The top-line growth in FY26 was primarily attributed to higher sales of existing products like whole wheat noodles, Korean ramen, and beverages, rather than new product launches.

Yu Foods did not expand into new geographies during the fiscal 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 stated that the company focused on selling more through the same channels and in the same markets. Quick commerce platforms such as Blinkit and Zepto have emerged as key sales channels for the brand, driving the majority of its revenue.

To support the rising demand, Yu Foods expanded its manufacturing setup in the last fiscal year. The startup currently operates a facility of about 50,000 square feet and works with three dedicated beverage bottling plants. In 2026, Yu Foods raised a debt of approximately $3 million to further fuel its growth.

Despite the challenges faced by the startup, the revenue growth in FY26 is a testament to the brand's ability to adapt and thrive in the competitive instant food market. With a strong focus on existing products and optimizing sales channels, Yu Foods is poised to continue its trajectory of growth and expansion in the coming years.