iD Fresh Food Nears 28% To ₹879 Cr Revenue in FY26: P.C. Musthafa's Sees 3x Profit Growth

Bengaluru-based iD Fresh Food, founded by entrepreneur P.C. Musthafa and his four cousins, reported a 27.7% YoY increase in consolidated operating revenue to ₹870 crore in FY26. More significantly, its profit before tax and exceptional items more than tripled to ₹79 crore from ₹24 crore in the previous financial year, reflecting stronger underlying business performance.

The company's financial statements, reviewed by The Unicorn Magazine, show that iD Fresh Food continued to expand its ready-to-cook and packaged food business during the year. Its total income, including ₹8 crore in other income, stood at approximately ₹879 crore.

The company had reported operating revenue of ₹681 crore in FY25.

However, its reported bottom line was affected by exceptional accounting entries worth approximately ₹713 crore, primarily associated with changes in the fair valuation of preference shares and the deconsolidation of a subsidiary. These adjustments make it important to distinguish reported earnings from the company's underlying operating performance.

Manufactured Food Products Contribute ₹671 Cr

Manufactured products remained the backbone of iD Fresh Food's business, contributing approximately ₹671 crore, or 75% of its operating income in FY26.

Its product portfolio includes idli and dosa batter, Malabar parathas and other ready-to-cook food products. The company also sells traded products such as curd, paneer, chapatis, coffee, specialty batter and frozen foods.

iD Fresh operates manufacturing facilities across Bengaluru, Hyderabad, Mumbai, Haryana and Ajman in the UAE, supporting its domestic and international distribution network.

The business has built its presence around fresh, preservative-free food products that offer consumers the convenience of packaged food while retaining the appeal of traditional home-cooked meals.

Raw Material Costs Remain the Biggest Expense

The company's total expenses increased 20.5% to approximately ₹801 crore in FY26 from ₹665 crore in FY25.

Raw material procurement continued to account for the largest share of expenditure, rising 18.3% to ₹394 crore. Employee benefit expenses increased 16% to ₹168 crore.

Despite higher operating costs, revenue growth helped improve profitability before exceptional items.

iD Fresh reported EBITDA of ₹111 crore for FY26, with an EBITDA margin of approximately 13%. Its return on capital employed (ROCE) stood at 17.4%.

P.C. Musthafa's Journey From a Small Kitchen to a ₹870 Cr Business

Founded in 2005, iD Fresh Food began its journey in a 50-square-foot kitchen in Bengaluru. P.C. Musthafa started the business alongside his cousins Abdul Nazer, Shamsudeen TK, Jafar TK and Noushad TA.

The company initially focused on fresh idli and dosa batter before expanding into parathas, dairy products and other packaged food categories.

Over the years, it attracted investments from Helion Venture Partners, Premji Invest and TPG NewQuest.

In January 2026, funds advised by Apax Partners announced a strategic investment in iD Fresh Food, acquiring a significant minority stake from existing shareholders Premji Invest and TPG NewQuest. The financial terms were not disclosed.

What Lies Ahead for iD Fresh Food?

iD Fresh's FY26 performance highlights the commercial opportunity in India's ready-to-cook food market. Products that were traditionally prepared at home are increasingly finding space in organised retail and modern distribution channels.

However, the category is becoming more competitive, with brands expanding their offerings across batters, parathas, snacks and other convenience foods.

For founder P.C. Musthafa, the next phase will involve balancing expansion with manufacturing efficiency, distribution costs and customer retention.

The company has demonstrated that traditional Indian food can become a sizeable packaged-food business. Its next challenge is to protect margins while competing for a larger share of consumers' everyday food spending.

FY26 financial highlights

Disclaimer: This article is for information purposes only and is not investment advice. Investments in securities are subject to market risks. Please read the official offer documents before investing.