Archian Foods, the parent company of the popular beverage brand Lahori Zeera, has reported a massive 73% jump in revenue for the fiscal year ending March 31, 2025. According to regulatory filings with the Registrar of Companies (RoC), the Punjab-based startup’s revenue from operations reached ₹540 crore, up from ₹312 crore in FY24.
However, despite the triple-digit top-line growth, the company’s bottom line remained under pressure. Net profit (PAT) was reported as flat at ₹25 crore, as the costs of aggressive distribution and rising raw material prices offset the revenue gains.
1. The Financial Breakdown (FY25)
Lahori Zeera’s performance highlights a strategic decision to prioritize market share over margin expansion in a highly competitive summer beverage market.
| Metric | FY25 (Actual) | FY24 (Actual) | Change (YoY) |
| Revenue from Operations | ₹540 Crore | ₹312 Crore | ↑ 73% |
| Total Revenue | ₹543 Crore | ₹315 Crore | ↑ 72% |
| Total Expenses | ₹499 Crore | ₹278 Crore | ↑ 80% |
| Net Profit (PAT) | ₹25 Crore | ₹23 Crore | Flat |
2. Why Expenses Skyrocketed
The “80% jump” in expenditure was driven by the high cost of scaling a heavy, low-margin product across India’s vast geography.
- Procurement (63% of Costs): The largest expense was raw materials and packaging, which rose over 70% to ₹316 crore. This includes the cost of glass bottles, PET, and natural spices like cumin (zeera).
- Logistics & Transportation: This cost doubled to ₹52 crore, accounting for 10% of total spending. Being a beverage brand, “moving liquid” is expensive, especially as Lahori expanded its reach into South and West India.
- Employee & Staffing: Total manpower costs reached ₹63 crore, driven by a 49% increase in permanent staff and a near-doubling of contractual labor to manage peak summer production.
3. Valuation & Investor Confidence
Despite the flat profits, investors remain bullish on Lahori’s ability to disrupt legacy players like Coca-Cola and PepsiCo in the “Desi” (ethnic) soda category.
- Motilal Oswal Investment: In May 2025, the company raised ₹200 crore from Motilal Oswal’s private equity arm, valuing the firm at approximately ₹2,800 crore ($329 million).
- Shareholding: Following the round, the founders (Nikhil Doda, Saurabh Munjal, and Saurabh Bhutna) hold 70.76%, while Verlinvest remains a major backer with 19.64%.
4. Strategic Outlook: The “₹1,000 Crore” Target
The management has set an ambitious goal to cross ₹1,000 crore in revenue by FY26. To achieve this, the company is pivoting its strategy:
- New Formats: Moving beyond the iconic glass bottles into PET bottles and spout packs to reduce breakages and logistics costs.
- GCC Expansion: The company is reportedly eyeing entry into the Middle East (GCC) market, targeting the massive Indian diaspora in the UAE and Saudi Arabia.
- Quick-Commerce Push: While 85% of sales are still offline, Lahori is aggressively partnering with platforms like Blinkit and Zepto to capture urban “last-minute” demand.
5. Challenges: The “28% GST” Hurdle
The brand continues to face a major regulatory headwind. All carbonated beverages in India are taxed at the highest 28% GST rate plus a 12% cess, regardless of their natural spice content. This “luxury tax” on a ₹10–₹20 product makes it difficult to maintain double-digit net margins while paying distributors and retailers competitive commissions.
