Blue Tokai, the Gurugram-based specialty coffee chain, recorded annual operating revenue of over ₹500 crore for the first time in FY26, marking a nearly 60% increase over the previous financial year. The growth highlights the company’s expanding operations amid increasing demand for specialty coffee in India. However, rising operating costs continued to weigh on its profitability.
The company’s revenue from operations increased 59.4% to ₹518 crore in FY26, compared with ₹325 crore in FY25. Including other income of ₹7.5 crore, Blue Tokai’s total income reached ₹525.5 crore for the financial year ended March 2026.
Coffee and related products remained the company’s largest revenue contributor, generating ₹513 crore during FY26, up from ₹322 crore in the previous fiscal year. The increase reflects the expansion of its café network and packaged coffee business as organised specialty coffee consumption continues to gain traction across India.
However, expenditure growth outpaced revenue growth during the year. Blue Tokai’s total expenses climbed 61.7% to ₹608 crore in FY26. Additionally, the cost of materials consumed, its largest expense component, increased 65.5% to ₹187 crore.
Despite the higher cost base, the company’s EBITDA rose to ₹23 crore from ₹19.4 crore in FY25. Nevertheless, its EBITDA margin contracted to 4.44% from 5.97% in the previous financial year. Meanwhile, its net loss widened 53.7% to ₹83 crore, compared with ₹54 crore in FY25.
Blue Tokai also reported a negative return on capital employed of 11.94%. Furthermore, its cash and bank balances declined significantly to ₹39 crore from ₹118 crore a year earlier.
Looking ahead, the specialty coffee chain is prioritising retail expansion and international market entry. In July 2026, co-founder and CEO Matt Chitharanjan outlined the company’s ambition to expand its store network from approximately 240 outlets to 800 by FY30. As part of this strategy, Blue Tokai plans to open around 120 additional stores in FY27 while pursuing international expansion, starting with Dubai. The company has also set March 2028 as its target for achieving profitability.
Blue Tokai operates in India’s increasingly competitive organised café market, where it competes with established players such as Third Wave Coffee, Tata Starbucks, Café Coffee Day, and Barista. Meanwhile, Tata Starbucks reported operating revenue of ₹1,367 crore in FY26 and reduced its net loss by approximately 27% to ₹98.95 crore.
As Blue Tokai accelerates its expansion, improving operational efficiency and controlling costs will remain critical to its financial performance. Although crossing the ₹500 crore revenue milestone marks a significant step in its growth journey, the company must balance its expanding retail footprint with sustainable profitability.
