Boba Bhai Revenue Jumps 139 Percent to Rs 68 Crore, but FY26 Losses Widen to Rs 21.8 Crore

Boba Bhai reported a 139 percent year-on-year increase in revenue from operations to Rs 68 crore in FY26, compared with Rs 28.44 crore in FY25. However, the company's net loss also widened to Rs 21.8 crore from Rs 9.96 crore as it expanded its store network and recorded higher operating expenses.

Food and beverage sales contributed Rs 67.26 crore, accounting for 99 percent of operating revenue, up 137.1 percent from the previous fiscal. Revenue from scrap sales increased to Rs 28 lakh from Rs 7 lakh. Including Rs 1 crore in other income, the company's total income stood at Rs 69 crore in FY26, compared with Rs 29.44 crore in FY25.

The expansion came with a sharp increase in operating costs. Cost of materials consumed, the company's largest expense category, rose 138.5 percent to Rs 25 crore. Employee benefit expenses increased 210.3 percent to Rs 13.5 crore, while advertising and promotional spending grew 139.9 percent to Rs 13 crore. Commission expenses rose 155.9 percent to Rs 11.44 crore.

Other expenses increased 120.3 percent to Rs 31.46 crore and accounted for 35 percent of total expenditure. Overall, total expenses rose 2.3 times to Rs 90.4 crore in FY26 from Rs 39 crore in FY25. The company had 188 employees at the end of March 2026.

Despite the revenue growth, Boba Bhai's losses widened 2.2 times during the year. Its operating efficiency improved marginally, with the company spending Rs 1.33 to generate every rupee of operating revenue, compared with Rs 1.37 in FY25. EBITDA margin improved to -30.35 percent from -34.67 percent, while return on capital employed (ROCE) declined to -41.12 percent from -32.47 percent. Cash and bank balances also fell to Rs 2.85 crore from Rs 24.07 crore.

Boba Bhai raised Rs 40 crore in March 2026 to support its expansion. The company currently operates around 100 stores across eight cities and plans to enter 10 cities in FY27. It is also targeting an additional 150-200 stores by the end of the fiscal.

The next phase of expansion will place greater focus on store-level profitability and cash generation. With material, employee, marketing and commission expenses rising alongside revenue, the company's ability to improve unit economics will be an important factor in sustaining its growing retail network.