New Delhi, Nov. 10 -- Specialty coffee chain Blue Tokai Coffee Roasters turned EBITDA positive in the financial year ended March 2026 as revenue grew sharply, driven by an expansion in its cafe network.
However, its net loss widened during the year, weighed down by higher lease-related costs and a provision against a loan to its Japan associate.
Founded by Matt Chitharanjan, Namrata Asthana and Shivam Shahi, Blue Tokai is backed by A91 Partners, Verlinvest, Anicut Capital and 12 Flags, among others.
Muhavra Enterprises Pvt Ltd, which operates Blue Tokai, reported total income of Rs 525.5 crore in FY26, up 58% from Rs 332.9 crore a year earlier, according to its consolidated financial statements. Revenue from operations rose 59% to Rs 517.7 crore. The company reported EBITDA of about Rs 31.3 crore, a VCCircle analysis shows.
Its firm's net loss, however, widened 54% to Rs 82.9 crore from Rs 53.9 crore, as total expenses grew 62% to Rs 608.4 crore. Depreciation nearly doubled to Rs 87.2 crore as the company added outlets, while finance costs rose to Rs 27 crore from Rs 16.4 crore, largely due to interest on new leases. Its right-of-use assets, which relate to leased premises, nearly doubled to Rs 279.5 crore.
The company also made a provision of Rs 10.4 crore against a loan extended to its associate, Blue Tokai Coffee Japan.
During FY26, Blue Tokai merged TheGOT Hospitality Pvt Ltd, which operates the Got Tea brand, into itself with effect from April 1, 2025. The National Company Law Tribunal approved the scheme in August 2026. The company now operates under the Blue Tokai, Suchali's and Got Tea brands.
Blue Tokai raised about Rs 73 crore through preference shares in FY26. Despite the fundraise, its cash, bank balances and liquid investments fell to about Rs 47 crore at the end of March 2026 from about Rs 122 crore a year earlier. Meanwhile, borrowings rose to Rs 55.8 crore from Rs 46.5 crore.
Published by HT Digital Content Services with permission from VC Circle.