Blue Tokai Crosses Rs 500 Crore Revenue in FY26, but Losses Surge 53.7%

Coffee chain Blue Tokai reported a 59.4% increase in operating revenue to Rs 518 crore in FY26, compared with Rs 325 crore in FY25. However, its net losses widened 53.7% to Rs 83 crore from Rs 54 crore, according to consolidated financial statements reviewed by Entrackr.

Coffee and related product sales contributed Rs 513 crore, up 59.3% from Rs 322 crore in the previous fiscal year. Including Rs 7.5 crore in other income, the company's total income reached Rs 525.5 crore.

Rising operating costs affected profitability. Material costs increased 65.5% to Rs 187 crore, while employee benefit expenses grew 35.9% to Rs 130.5 crore. Rent expenses rose 59.6% to Rs 26.65 crore, and depreciation nearly doubled to Rs 87 crore. Total expenses increased 61.7% to Rs 608 crore from Rs 376 crore in FY25.

Blue Tokai's EBITDA increased to Rs 23 crore from Rs 19.4 crore. However, its EBITDA margin declined from 5.97% to 4.44%, indicating pressure on operating efficiency. The company reported a negative return on capital employed (ROCE) of 11.94% and spent Rs 1.17 to earn every rupee of revenue.

Its cash and bank balances also declined to Rs 39 crore from Rs 118 crore, while total assets increased to Rs 697 crore from Rs 521 crore.

The company faces competition from players such as Third Wave Coffee and Tata Starbucks. Tata Starbucks reported operating revenue of Rs 1,367 crore and a 27% reduction in net losses in FY26.

Blue Tokai's next growth phase will depend on controlling operating costs, improving store-level economics and converting revenue expansion into sustainable profitability.