Blue Tokai FY25 Financials Show Revenue Growth Amid Cost Pressures

Specialty coffee chain Blue Tokai Coffee Roasters reported an improvement in its financial performance in the year ended March 2025, with its net loss declining by 20.2 percent to Rs 50.2 Cr from Rs 62.9 Cr in FY24. The improvement reflects stronger operating performance, partially offset by higher costs and a tax outgo during the year.

The company’s bottom line was impacted by a tax expense of Rs 11.1 Cr in FY25, compared to a tax gain of over Rs 1 Cr in the previous fiscal year. Loss before tax declined sharply, falling nearly 40 percent to Rs 39.1 Cr from Rs 64.2 Cr in FY24, indicating tighter operational controls amid expansion.

Blue Tokai’s operating revenue crossed the Rs 300 Cr milestone during the year, rising 1.5X to Rs 325.4 Cr from Rs 215.8 Cr in FY24. Including other income of Rs 7.3 Cr, total income increased 50.5 percent year-on-year to Rs 221.1 Cr.

Founded in 2013 by Matt Chitharanjan, Shivam Shahi, and Namrata Asthana, the Delhi NCR-based company operates four roasteries and more than 100 physical outlets across key Indian markets including Delhi NCR, Mumbai, Bengaluru, and Hyderabad. The brand has also expanded internationally with outlets in Tokyo, Japan, and Dubai, UAE.

Since inception, Blue Tokai has raised over USD 97 Mn in funding from investors such as Verlinvest, Anicut Capital, 12 Flags, and A91 Partners. The company operates in a competitive specialty coffee segment alongside brands such as Third Wave Coffee Roasters, SLAY Coffee, Rage Coffee, and Sleepy Owl, as organised café chains continue to scale across urban India.

On the cost side, Blue Tokai’s total expenditure increased 35.3 percent to Rs 385 Cr in FY25 from Rs 284.5 Cr in the previous year. Employee benefit expenses rose 12.6 percent to Rs 94.5 Cr from Rs 83.9 Cr, reflecting continued hiring and workforce expansion. The cost of materials consumed remained the largest expense category, accounting for 27.2 percent of total expenditure at Rs 104.6 Cr, up 19.5 percent from Rs 87.6 Cr in FY24.

Rental expenses saw a significant increase, rising 67 percent to Rs 55.2 Cr from Rs 33 Cr in the previous year. Rent accounted for 14.3 percent of total expenses, highlighting the cost impact of expanding physical retail presence in high-footfall urban locations.

Blue Tokai’s FY25 performance reflects the broader trend within organised café chains, where strong revenue growth driven by store expansion and rising consumer demand is accompanied by increasing fixed and operating costs. The reduction in losses suggests improving unit economics, even as the company continues to invest in scale, talent, and physical infrastructure.