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Blue Tokai recorded strong business growth in FY26 by crossing the ₹500 crore revenue mark, reflecting its expanding presence in India's organised cafe market. However, rising operating costs weighed on profitability, with the company's net losses widening 53.7% during the fiscal year ended March 2026.
Revenue from operations surged 59.4% to ₹518 crore in FY26, compared with ₹325 crore in FY25, according to the company's consolidated financial statements shared in media reports.
The company also reported ₹7.5 crore in other income, taking its total income to ₹525.5 crore during the last fiscal year.
Sales of coffee and related products remained Blue Tokai's primary source of operating revenue, increasing 59.3% to ₹513 crore in FY26 from ₹322 crore in FY25. Lease income grew 36.2% to ₹3.5 crore, while revenue from services stood at ₹1 crore during the fiscal year.
Despite the revenue growth, higher operating expenses put pressure on the company's profitability. The cost of materials consumed, its largest cost component, increased 65.5% to ₹187 crore in FY26 from ₹113 crore in FY25. Employee benefit expenses rose 35.9% to ₹130.5 crore, while rent expenses grew 59.6% to ₹26.65 crore.
Depreciation costs nearly doubled to ₹87 crore, while finance costs increased 68.8% to ₹27 crore from ₹16 crore in the previous fiscal year.
Other expenses climbed 70.5% to ₹150 crore in FY26 from ₹88 crore in FY25, accounting for around 25% of total expenditure. Consequently, the Gurugram-based company's total expenses rose 61.7% to ₹608 crore from ₹376 crore in FY25.
On the profitability front, Blue Tokai's EBITDA stood at ₹23 crore in FY26, compared with ₹19.4 crore in the previous fiscal year. However, its EBITDA margin declined to 4.44% from 5.97%. Net losses widened 53.7% to ₹83 crore in FY26 from ₹54 crore in FY25.
The company's return on capital employed (ROCE) stood at -11.94% in FY26. Its cash and bank balances declined to ₹39 crore in FY26 from ₹118 crore in FY25. Meanwhile, total assets increased to ₹697 crore from ₹521 crore in the previous fiscal year.
