Tea café chain Chaayos delivered a strong turnaround in FY25, as it recorded 25 percent growth in revenue from operations, crossed the Rs 300 crore milestone, and sharply improved profitability. At the same time, the company reduced its net losses by 53 percent, while EBITDA surged 6.5 times during the financial year ended March 2025, signaling a decisive rebound after a subdued previous year.
According to consolidated financial statements filed with the Registrar of Companies (RoC), Chaayos increased its operating revenue to Rs 310.6 crore in FY25, compared with Rs 248.6 crore in FY24, following a largely flat performance in the prior fiscal year. Consequently, the company regained growth momentum through stronger demand, operational discipline, and improved unit economics.
Founded in 2012 by Nitin Saluja and Raghav Verma, Chaayos currently operates more than 200 outlets across Delhi-NCR, Mumbai, and Bengaluru, offering customized teas, snacks, and beverages through dine-in, takeaway, and online formats. Furthermore, the company plans to double its store footprint to 400 outlets by next year, reinforcing its aggressive yet measured expansion strategy.
Sales of teas, snacks, and beverages continued to drive the bulk of revenue. Specifically, sales of manufactured goods contributed over 96 percent of total revenue at Rs 300 crore, while traded goods added Rs 9.5 crore. In addition, non-operating income stood at Rs 19.1 crore, which pushed total income to Rs 329.7 crore in FY25.
On the cost front, material expenses, which remained the largest cost component, rose 26 percent year-on-year to Rs 96.32 crore. Meanwhile, employee benefit expenses declined slightly by 3 percent to Rs 78.65 crore, reflecting tighter workforce cost management. Depreciation and amortization totaled Rs 51.8 crore, while commissions increased 21 percent to Rs 31.3 crore. At the same time, finance costs reached Rs 29.42 crore, and advertising expenses stood at Rs 14.55 crore. Other operating overheads, including power, legal, and travel costs, added Rs 53 crore, thereby taking total expenses up 9 percent to Rs 355 crore.
As a result of improved operating leverage and disciplined cost control, Chaayos reduced its losses to Rs 25.4 crore in FY25. EBITDA climbed sharply to Rs 37 crore, while the EBITDA margin improved to 11.85 percent, and ROCE stood at -3.72 percent. On a unit-level basis, the company spent Rs 1.14 to earn one rupee of operating revenue, underscoring improving efficiency across its store network.
As of March 2025, the Tiger Global–backed company reported current assets of Rs 155.7 crore, including Rs 17 crore in cash and bank balances. To date, Chaayos has raised over USD 90 million, including a USD 45 million Series C round in June 2022 led by Alpha Wave, with participation from Elevation Capital, Tiger Global, and Think Investments.
Chaayos’ FY25 performance highlights a meaningful shift toward scalable and sustainable growth, supported by revenue expansion, tighter cost structures, and improving profitability metrics. As the company accelerates store expansion while maintaining financial discipline, Chaayos appears well positioned to strengthen its leadership in India’s organized tea café segment over the coming years.
