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). The co-founder and CEO, Bharat Bhalla, shared this information with Inc42, highlighting the brand's impressive financial performance. This marks a 114% increase in operating revenue compared to the previous fiscal year, when it stood at ₹35 crore.

Despite the substantial growth in revenue, Yu Foods' net loss for FY26 remained largely flat, amounting to around ₹8 crore. This is only slightly higher than the net loss of ₹7.7 crore in the previous fiscal year. The EBITDA margin for the fiscal year improved marginally to about -4%.

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 revealed that around 40% of the brand's sales are currently driven by performance marketing, with the remaining sales coming 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 a key sales channel 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 addition, Yu Foods raised a debt of approximately $3 million in 2026 to further support its growth and operations.

The co-founder's strategy of focusing on existing markets and optimizing sales through quick commerce platforms has proven effective in driving revenue growth. As Yu Foods continues to expand its manufacturing capabilities and leverage digital sales channels, it is well-positioned to maintain its momentum and solidify its presence in the instant food market.