Blue Tokai FY26: Revenue Crosses Rs 500 Cr as Losses Widen

Blue Tokai’s revenue from operations rose 59.4% to Rs 518 crore in FY26 from Rs 325 crore in FY25, according to consolidated financial statements reviewed by Entrackr. The company also reported Rs 7.5 crore in other income, taking total income to Rs 525.5 crore for the fiscal year.

Sales of coffee and related products remained the core driver, rising 59.3% to Rs 513 crore from Rs 322 crore. Lease income increased 36.2% to Rs 3.5 crore, while services revenue stood at Rs 1 crore.

The company’s expansion came with a heavier cost base, and operating costs outpaced revenue growth. Material costs, the largest expense component, rose 65.5% to Rs 187 crore from Rs 113 crore.

Employee benefit expenses increased 35.9% to Rs 130.5 crore, while rent expenses grew 59.6% to Rs 26.65 crore. Depreciation costs nearly doubled to Rs 87 crore, finance costs rose 68.8% to Rs 27 crore, and total expenses increased 61.7% to Rs 608 crore.

Blue Tokai’s EBITDA increased to Rs 23 crore in FY26 from Rs 19.4 crore in FY25, but its EBITDA margin declined to 4.44% from 5.97%. Net losses widened 53.7% to Rs 83 crore from Rs 54 crore in the previous fiscal year.

The company’s ROCE stood at -11.94% in FY26, and it spent Rs 1.17 to earn a rupee. Cash and bank balances fell to Rs 39 crore from Rs 118 crore, while total assets rose to Rs 697 crore from Rs 521 crore.

Blue Tokai operates in a competitive coffee market, with Third Wave Coffee cited among its main rivals. Third Wave had not disclosed FY26 financials, while Tata Starbucks reported Rs 1,367 crore in operating revenue and a 27% reduction in net losses during the year.

The comparison shows the scale gap as Blue Tokai looks to strengthen its position in India’s organised cafe market. Its next phase will depend on growing its store network while improving store-level economics, customer retention, and operating efficiency.