India’s D2C ecosystem continues to witness strong topline momentum across food and beverage brands, and Sid’s Farm is a clear example of this trend. The Hyderabad-based mass-premium dairy brand reported a sharp 38% year-on-year growth in operating revenue to ₹168 crore in FY25, up from ₹122 crore in FY24, underscoring rising consumer demand for traceable, quality-focused dairy in Direct-to-Consumer India.
Including other income of ₹2 crore, Sid’s Farm’s total income stood at ₹170 crore for the year ended March 2025. Founded in 2016, the brand has built a strong reputation by managing the entire dairy value chain, sourcing milk directly from farmers and delivering fresh milk and dairy products to urban consumers—an approach that has resonated well within D2C brands India and premium daily-consumption categories.
The FY25 revenue performance places Sid’s Farm among the latest D2C startups showing consistent scale in India’s food and beverage segment. However, the year also highlighted the cost pressures that often accompany rapid expansion in D2C business India, especially in supply-chain-heavy categories like dairy.
Total expenses rose 47% year-on-year to ₹196 crore, compared to ₹133.5 crore in FY24. The largest cost component remained material consumed, which increased 41% to ₹126 crore and accounted for over 64% of total expenses. This reflects higher procurement volumes, increased farmer payouts, and inflationary pressures across the dairy ecosystem—key themes emerging across D2C industry news.
Employee benefit expenses climbed 47% to ₹25 crore as the company continued to invest in operations, delivery, and management talent to support growth. Advertising and brand-building costs nearly doubled to ₹7 crore, signalling a stronger push toward customer acquisition and brand visibility in an increasingly competitive D2C ecosystem India. Distribution and transportation expenses rose to ₹8 crore and ₹5 crore respectively, while other operating costs added ₹25 crore during FY25.
As a result of these investments, losses widened to ₹27 crore in FY25, compared to ₹10.5 crore in FY24. The company reported an EBITDA margin of -14.58% and a ROCE of -45.24%, reflecting the near-term impact of scaling costs. On a unit-economics basis, Sid’s Farm spent ₹1.17 to earn every rupee of operating revenue, up from ₹1.09 the previous year.
Despite the losses, the financials point to a deliberate growth phase rather than demand weakness—an increasingly common pattern across D2C startup news as brands prioritise reach, infrastructure, and farmer-linked sourcing over short-term profitability.
As of March 2025, Sid’s Farm reported cash and bank balances of ₹1 crore, while current assets increased to ₹45 crore, indicating ongoing working-capital deployment to support operations. To date, the company has raised approximately $12.2 million in funding, including a $10 million round co-led by Omnivore and the Narotam Sekhsaria Family Office, placing it firmly among VC-backed D2C brands in India’s food sector.
Within the broader context of D2C market trends 2025, Sid’s Farm’s FY25 performance reflects both the opportunity and challenge of building scaled, trust-led food brands. As consumers continue shifting toward fresh, transparent, and locally sourced dairy, brands like Sid’s Farm are positioned for long-term relevance—provided operating leverage improves as scale deepens.
For investors tracking India’s D2C market news and insights, Sid’s Farm represents a classic scale-up story: strong demand, rising brand equity, and near-term cost pressure in pursuit of a larger, defensible dairy platform.
