Blue Tokai crossed 500 crore in FY26 revenue as losses widened 54%; here is what depreciation, finance costs and store maturity reveal about specialty coffee's growth.
India’s specialty coffee market stood near 26,000 crore in 2025, projected to grow about 14% annually through 2031 as cafe culture spreads.
Blue Tokai has crossed 500 crore in revenue for the first time, with FY26 operating revenue up 59% to 518 crore from 325 crore.
Net loss widened 54% to 83 crore, yet EBITDA stayed positive at 23 crore; depreciation of 87 crore and finance costs explain the gap.
Shivam Shahi, Co-founder, Blue Tokai, told Inc42 that with “backend expenses effectively offset by front-end contribution margins,” profitability at scale is achievable.
Starbucks India, Third Wave Coffee, Subko and Sleepy Owl share this premium space, with Third Wave targeting company-wide break-even in FY27.
Growth has been steady: revenue rose from 216 crore in FY24 to 325 crore in FY25, and now 518 crore.
Verlinvest-backed Blue Tokai raised about 210 crore in September 2025 and fresh investment in May 2026 to fuel global growth plans.
Dubai opened in July 2026, Tokyo in 2024, while about 240 stores aim for 800 by FY30 and revenue of 1,000 crore by 2027.
Value-conscious consumers keep every new cafe’s ramp-up under pressure, and cash balances eased to 39 crore from 118 crore a year earlier.
Yet the path looks credible: profitability targeted by March 2028, positive EBITDA already, and revenue growing near 60% for India’s largest specialty coffee brand.
Editor’s Note
Read the loss carefully: depreciation at 17% of revenue says Blue Tokai is paying today for stores that will mature tomorrow.
That is build-phase cost, not operating weakness.
The real test is cohort maturity. Cafes opened in FY24 and FY25 should now be lifting average sales; finance costs, up 69%, will ease only if they do.
Specialty coffee still has room: packaged coffee, online sales and overseas distribution give Blue Tokai more levers than a pure cafe chain, and that mix should reward patience.
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