FOR THE FINANCIAL YEAR ENDED MARCH 31, 2026
INDUSTRY STRUCTURE AND DEVELOPMENTS
Global Industry Overview
The global food service industry continues to be reshaped by the accelerated adoption of digital ordering, asset-light delivery formats and multi-brand cloud kitchen models. The pivot away from traditional dine-in real estate towards delivery-first and hybrid formats, which began during the pandemic years, has become a structural feature of the industry rather than a temporary shift, with consumers across geographies increasingly favouring convenience, speed and value in their food choices.
Domestic Industry Overview
Indias food service industry was valued at approximately US$ 85.19 billion in calendar year 2025 and is projected to grow to approximately US$ 139.8 billion by 2030, translating into a CAGR of around 10.4%. Within this, the organised segment - comprising branded restaurant chains, quick-service restaurants ("QSRs") and cloud kitchens - is expanding at a considerably faster pace of approximately 15% CAGR over 2023-26 and is steadily gaining share from the largely fragmented unorganised segment.
The Indian QSR segment alone was estimated at approximately US$ 27.8-30.4 billion in 2025-26 and is expected to grow at a CAGR in the range of 7-9% over the next several years, aided by rising urbanisation, a young and mobile-first population, increasing disposable incomes and continued penetration of aggregator-led food delivery. The cloud kitchen segment, in particular, has emerged as one of the fastest-growing formats within the industry, with the Indian cloud kitchen market estimated at approximately US$ 1.2-1.4 billion in FY26 and projected to grow at a CAGR of over 12% through the next decade, driven by Tier-2 city expansion, falling aggregator commission alternatives such as ONDC, and the capital-efficient nature of the format.
Online food delivery remains heavily consolidated between two national aggregators, which together account for the substantial majority of organised delivery volumes in the country. This has made aggregator relationships a critical determinant of revenue for asset-light, delivery-led operators, including the Company.
The Company operates in this landscape as a pure-vegetarian, multi-brand food services company headquartered in Delhi NCR, offering North Indian, Punjabi and allied cuisines through its flagship "Punjabi Angithi" brand and complementary digital storefronts including Chinese Veg Crunch, Dilli Tawa Parantha, Food of Dreams, Swaad of Punjab and Dum Biryani by Punjabi Angithi, operated through a combination of cloud kitchens, fine dining restaurants, corporate thali services and outdoor catering.
MACROECONOMIC AND REGULATORY DEVELOPMENTS
GST rate rationalisation ("GST 2.0"): Effective September 22, 2025, the GST Council rationalised the tax structure into a simplified two-slab regime. While standalone restaurant services (including QSR and cloud kitchen formats) continue to be taxed at 5% without input tax credit, several essential food inputs used by the Company such as milk, paneer, butter and cheese have moved to lower or nil GST slabs, which is expected to provide some relief on the input cost side, even as the inability to claim input tax credit on rent, utilities and packaging continues to be a structural feature of the restaurant GST regime. Implementation of the four Labour Codes: The Government of India brought the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 into effect from November 21, 2025, consolidating 29 erstwhile central labour statutes. The revised, uniform definition of "wages" (which caps non-wage allowances at 50% of total compensation) is expected to increase statutory contributions such as provident fund and gratuity for labour-intensive businesses such as the Company, once the corresponding central and state rules are finally notified within the one-year transition window ending November 20, 2026.
Consumption and urbanisation trends: Continuing urbanisation, rising per-capita disposable incomes and growth in Indias internet and smartphone user base (over 900 million subscribers) continue to expand the addressable base for organised, delivery-led food services. Input cost environment: Prices of key vegetarian kitchen inputs such as vegetables, dairy products and edible oils remain subject to seasonal and monsoon-linked volatility, which has a direct bearing on gross margins for a pure-vegetarian food operator.
OPPORTUNITIES AND THREATS
Opportunities a) Continued formalisation of Indias food service industry and faster growth of the organised segment relative to the unorganised segment. b) Expansion into Tier-2 cities and new geographies beyond the Companys core Delhi NCR base, leveraging the asset-light, capital-efficient cloud kitchen model; the Company has already commenced operations in Dehradun as a first step outside the NCR region. c) Diversification into fine dining, banquets and outdoor catering to build a presence in the higher-margin, dine-in and events segment, funded through IPO proceeds. d) Growth of corporate and institutional catering (compact catering, corporate thali services) as a stable, less aggregator-dependent revenue stream. e) Reduction in dependence on third-party aggregators over time through investment in owned ordering channels and direct customer relationships. f) Rising acceptance of vegetarian and North Indian/Punjabi cuisine formats across urban and semi-urban India, supporting multi-brand digital storefront strategies.
Threats
a) High dependence on third-party food aggregators - approximately 92% of the Companys revenue from operations in FY25 was derived through online delivery platforms - exposing the business to changes in aggregator commission structures, algorithms and platform policies. b) Geographic concentration of operations in the Delhi NCR region, which exposes the Company to region-specific demand, regulatory or real estate disruptions. c) Intense competition from both organised QSR/cloud kitchen chains and a large, resilient unorganised sector of local eateries and street food vendors. d) Rising real estate/rental costs in high-footfall locations and increasing labour costs, compounded by the compliance cost impact of the new Labour Codes. e) Volatility in prices of key food inputs (vegetables, dairy, edible oils) which can compress margins in a predominantly fixed-price/aggregator-led revenue model. f) Regulatory and food-safety compliance obligations (FSSAI licensing, hygiene standards) across a growing multi-location kitchen network.
SEGMENT-WISE / BUSINESS-WISE PERFORMANCE
The Company operates as a single reportable business segment, namely "food and beverage services", under the applicable accounting standards. Within this segment, the Companys operations are organised across the following formats:
| Business Format | Number of Units (Mar-25) | Number of Units (Mar- 26) | Primary Channel |
| Cloud Kitchens | 19 | 27 | Aggregator delivery (Swiggy/Zomato) |
| Fine Dining Restaurants | 2 | 2 | Dine-in / Banquets (under development) |
| Corporate Thali / Compact Catering | Integrated | Integrated | Direct / Institutional orders |
| Outdoor Catering / Events | Integrated | Integrated | Private & corporate events |
Cloud kitchens remain the primary growth driver of the business, having grown from 19 units as at March 31, 2025 to 27 units as at March 31, 2026, and continue to be the principal channel through which the Companys multiple digital-first brands reach customers via Swiggy, Zomato and other aggregator platforms. The Companys two fine dining restaurants in Delhi NCR cater to dine-in and event-led demand, and a banquet and fine dining facility is under development using IPO proceeds to build out this format further. As the Company presently reports as a single business segment, granular segment-wise financial disclosures are not separately presented; the Board and management nonetheless track unit economics, format-wise revenue contribution and channel mix (aggregator versus direct) as key internal performance indicators.
OUTLOOK
Having successfully listed on the BSE SME platform in May 2026 and delivered revenue growth of 39% and PAT growth of 47% in FY26, the Company intends to sustain its growth momentum through the following strategic priorities:
a) Utilization of net IPO proceeds towards construction of a banquet and fine dining restaurant, development of a centralised kitchen facility, roll-out of new cloud kitchens and upgradation of existing cloud kitchen infrastructure. b) Continued expansion of the cloud kitchen network within Delhi NCR and gradual geographic diversification into new cities beyond NCR and Dehradun, to reduce regional concentration risk. c) Strengthening of the centralised kitchen model to improve standardisation, food quality consistency and operating leverage as the outlet network scales. d) Deepening presence in the corporate catering and events business as a complement to the aggregator-led cloud kitchen revenue base. e) Continued focus on brand-building across the Companys multi-brand digital storefront portfolio to improve customer retention and reduce marginal customer acquisition costs. While management believes the Company is well placed to continue its growth trajectory, the statements above are forward-looking in nature and are subject to the risks, assumptions and uncertainties described elsewhere in this report and in the Companys other public disclosures.
RISKS AND CONCERNS a) Aggregator concentration risk: A substantial majority of revenue is derived through a small number of third-party food delivery platforms, and any adverse change in their commission structure, ranking algorithms or commercial terms could materially affect margins and revenue. b) Geographic concentration risk: Operations remain heavily concentrated in Delhi NCR, exposing the Company to local regulatory, real estate and demand-side disruptions. c) Regulatory and compliance risk: The Company is required to comply with FSSAI food safety norms, local municipal licences, fire and health and safety regulations and, going forward, the new Labour Codes, across an expanding multi-location kitchen network. d) Execution risk on capital expenditure: The IPO proceeds are earmarked for construction of a banquet/fine dining facility, a centralised kitchen and new cloud kitchens; delays in execution, cost overruns or lower-than-anticipated returns on this capex could affect financial performance. e) Input cost and margin risk: Volatility in vegetable, dairy and edible oil prices, combined with the inability to claim input tax credit under the 5% GST regime applicable to standalone restaurants, can compress operating margins. f) Human resource and labour cost risk: The Companys operations are relatively labour-intensive; wage inflation and the compliance cost impact of the new wage definition under the Labour Codes are monitored as an ongoing risk. g) Competitive risk: The Company competes with both organised national/regional QSR and cloud kitchen chains and a large unorganised sector, which can exert pricing and margin pressure. The Board and senior management periodically review these risks as part of the Companys risk management framework and take mitigating steps, including diversifying revenue channels, strengthening vendor and rental contracts, and building internal control and compliance processes commensurate with the Companys scale as a newly listed entity.
RISKS AND CONCERNS INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company has in place internal control systems commensurate with the size, scale and nature of its operations, covering areas such as procurement, inventory and food cost management, cash handling across multiple kitchen and restaurant locations, aggregator reconciliation, payroll and statutory compliance. These systems are designed to ensure that assets are safeguarded, transactions are appropriately authorised, recorded and reported, and that applicable laws and regulations are complied with.
Following its listing on the BSE SME platform, the Company has strengthened its internal control and financial reporting framework to align with the requirements applicable to a listed entity, including enhanced documentation of standard operating procedures across its cloud kitchen and fine dining formats, periodic internal audit coverage, and oversight by the Audit Committee of the Board. The Audit Committee reviews the internal audit findings and the adequacy of internal financial controls periodically, and no material weakness was reported during the year that, in managements view, would have a significant bearing on the Companys financial statements.
DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
The Company delivered a strong financial performance in FY26, its first year as a listed entity, continuing the growth trajectory established over the preceding two financial years:
| Particulars | FY 2023-24 | FY 2024-25 | FY 2025-26 | Y-o-Y Growth (FY26) |
| Revenue from Operations ( in Crore) | 65.94 | 101.31 | 140.87 | 39% |
| Profit After Tax ( in Crore) | 4.64 | 8.22 | 12.04 | 47% |
| Basic Earnings Per Share ( ) | N.A.* | 6.48 | 9.54 | 47% |
| Return on Net Worth (%) | - | 90.39% | Refer note below | - |
Revenue from operations grew by approximately 39% year-on-year to 140.87 crore in FY26 from 101.31 crore in FY25, following growth of approximately 54% in FY25 over FY24 ( 65.94 crore) and approximately 290% in FY24 over FY23 ( 16.88 crore), reflecting the scale-up of the Companys cloud kitchen network from 19 to 27 units and continued strong order volumes through aggregator platforms. Profit after tax grew by approximately 47% to 12.04 crore in FY26 from 8.22 crore in FY25, aided by operating leverage as the cloud kitchen network scaled and centralised procurement benefits, partly offset by continued reliance on third-party aggregator commissions.
Basic earnings per share increased to 9.54 in FY26 from 6.48 in FY25. The Companys return on net worth stood at 90.39% and return on equity at 57.34% for FY25, reflecting the capital-efficient, asset-light nature of the cloud kitchen model; these ratios are expected to normalize going forward following the infusion of fresh equity capital of 30.70 crore pursuant to the IPO completed in May 2026.
On the balance sheet and cash flow front, the Companys net worth increased materially during the year on account of the fresh issue proceeds. Net proceeds from the fresh issue of equity shares are being deployed, in line with the objects stated in the Red Herring Prospectus, towards (i) construction of a banquet and fine dining restaurant (approximately 11.8-11.9 crore), (ii) construction of a centralized kitchen facility (approximately 4.2-4.3 crore), (iii) roll-out of new cloud kitchens
(approximately 4.7-4.9 crore), (iv) upgradation of existing cloud kitchen facilities (approximately 1.6-2.3 crore) and (v) general corporate purposes. Proceeds from the offer for sale component of the IPO accrued to the selling shareholder and did not form part of the Companys cash flows.
The Companys shares were listed on the BSE SME platform on May 27, 2026 at an issue price of 77 per share, and opened at 118.10 per share, reflecting strong investor confidence in the Companys growth trajectory and business model.
HUMAN RESOURCES / INDUSTRIAL RELATIONS DEVELOPMENTS
As at March 31, 2026, the Company had a workforce of approximately 306 employees supporting its network of 27 cloud kitchens and 2 fine dining restaurants across Delhi NCR and Dehradun. The Companys human resource focus during the year centred on scaling its kitchen operations workforce in line with the growth in the number of outlets, training staff on standardised recipes and food safety protocols across locations, and preparing for compliance with the new Labour Codes that came into effect on November 21, 2025.
The Company continued to maintain cordial industrial relations during the year, with no material disputes reported. Management is undertaking a review of employment contracts, wage structures and statutory benefit computations to align with the revised definitions under the Code on Wages, 2019 and the Code on Social Security, 2020, ahead of the notification of final central and state rules.
Note: This Management Discussion and Analysis report contains forward-looking statements that reflect managements current expectations and assumptions and are subject to risks and uncertainties. Actual results may differ materially from those expressed or implied. The financial and business information referenced above has been compiled from the Companys Red Herring Prospectus and publicly available disclosures for the periods indicated, and should be read together with the audited financial statements and notes thereto form.
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