Zoff Foods has achieved a milestone in its business through a crossover of ₹100 crores in revenues in the financial year ending on 31st March, 2025. Although the firm has been able to achieve new heights in its topline, the financial year 2025 also posed significant fiscal challenges. The Aman Gupta-backed company has fallen into major losses in the process, even though the revenue has reached an impressive level. The twin facts of impressive sales and increasing deficits are a testament to the aggressive investment policy that the company is adopting in an effort to consolidate its position in the competitive FMCG arena.
Market performance and impact
Zoff Foods is a company that has experienced a remarkable growth in its topline in the financial year 2025, as its operating revenue grew by approximately 11%. The revenue of the company increased to ₹103 crore, as compared to ₹93 crore that it achieved during the previous financial year. Launched in 2018 by Akash and Ashish Agarwal, the brand is based in Raipur, where it has managed to find its niche in the market since it focuses on high-quality spices, dry fruits, and whole food products. It has been able to cross the ₹100 crore mark in a comparatively short time frame shows the strength of its branding and the increasing consumer demand towards its products in different sales outlets.
Its visibility has helped the brand to become more than a regional player as it takes an omnichannel strategy that enables it to integrate online marketplaces with offline retail. Although the revenue numbers indicate a strong demand for the brand product portfolio, the overall financial performance shows that the expansion has been expensive. Its revenue growth was disappointingly overshadowed by an even steeper increment in the cost of operation, which has affected the overall profitability of the company.
Operational and financial health of Zoff Foods
There was a significant difference between increases in revenue and spending in fiscal year 2025. Although the revenues of the company shifted in the right direction, its overall expenses increased at a much higher rate of 32%. Spending increased to the 2024 financial year by ₹91 crore and to 2025 by ₹120 crore. This over-inflation of costs is the main motive behind the shift of the company towards a marginal loss to a greater deficit.
Raw materials procurement was a significant portion of this expenditure, as it is the largest contributor to expenditure on this brand. The costs of raw materials increased by 22% in the year to ₹73 crore, in comparison to ₹60 crore in the preceding year, and it took about 61% of the total expenditure.
In addition to the price of goods, Zoff Foods took a conscious and vigorous step in the sphere of brand building and recognition. The budget of the company on advertising and marketing practically tripled in the 2025 financial year, as it rose to ₹12 crores as compared to ₹4 crores the previous year. This huge investment was aimed at maintaining the brand at the top of the minds of the consumer, but it also burdened the bottom line immediately.
There was an increase of 25% in employee-related expenses to ₹5 crore, and the company suffered another blow by registering about ₹4 crore in bad debts write-offs. All these led to a loss reported as ₹17 crore, a drastic contrast to the loss of ₹20 lakh in the preceding fiscal year.
Key performance indicators can be used to further explain the financial health of Zoff Foods in the 2025 financial year. The EBITDA margin of the company was -17.96% and the Return on Capital Employed was -54.17%.
The operational inefficiency was further evident on a per-unit basis as the firm incurred costs of approximately ₹1.17 per unit of operating revenue that it was making. This has risen compared to the ₹0.98 per rupee earned in the financial year 2024, meaning that the cost of scaled business is becoming more costly.
These short-run fiscal strains notwithstanding, Zoff Foods is stable in its asset and support bases. Current assets of the company have increased by ₹43.5 crore to ₹50 crore at the end of the year, and its cash and bank balance stood at ₹0.2 crore end of the period.
The company has so far raised approximately $5 million in funds, with JM Financial India being the prime investor. The two founders, Akash and Ashish Agarwal, have a majority stake with a combined share of 52.5% equity. With the brand’s future in place, it is also reportedly gearing up to raise another round of funds in order to facilitate its further growth.
Conclusion
As Zoff Foods proceeds, its mission is still firmly focused on the enhancement of its offline presence and market coverage. The company is also in the process of adjusting its online-based background to have a strong platform in general trade and modern trade stores. The ₹100 crore revenue mark has been reached, which gives a solid base to the future goals of the company. By developing new capital resources and optimising its operational effectiveness, Zoff Foods will be able to overcome these financial challenges and proceed with its growth, turning the existing investment in marketing and infrastructure into long-term market dominance.
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