One of the leading players in the Indian beverage and cafe industry has experienced a massive performance upsurge. The popular tea café chain Chaayos made a strong financial recovery in the financial year 2025 (FY25) after having recorded a relatively low growth in the previous financial years. The consolidated financial statements of the company, prepared with the Registrar of Companies has shown that Chaayos has passed the ₹300 crore revenue mark, and this is a major milestone in its ten years of operation to universalize the organized tea market in India.
EBITDA growth and losses reduction
This growth rate will be an increment with 25% growth in operations size as compared to the last fiscal year. The revenue of the company due to operations was ₹248.6 crore in FY24 and has increased to ₹310.6 crore in FY25. This revival is credited to a measured approach of growing its outlets and increased attention to its main product lines that helped the brand regain the sluggish growth it had experienced last year.
According to Chaayos, it increased its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) 6.5 times within the period. This is an exponential increase in the EBITDA that is a direct consequence of strict control procedures that have been adopted in terms of costs as well as enhanced efficiencies in its operations distributed throughout the network of over 200 outlets spread across Delhi-NCR, Mumbai, and Bengaluru.
Besides the EBITDA surge, the company achieved a lot in enhancing its bottom line. Chaayos was also able to reduce its net losses by 53%, to ₹25.4 crore in FY25 compared to the ₹54 crore in FY24. The fact that it is capable of increasing revenue and at the same time reducing losses by over half implies that the brand is at an inflection point with its unit economics becoming more sustainable.
Expansion plans and expense management
Nitin Saluja and Raghav Verma founded Chaayos in 2012. Chaayos has established itself on the principle of “Meri Wali Chai”, which gives the tea lovers a thousand options on how they want their tea to be. The company is currently looking to aggressively increase its physical presence with the new FY25 financial momentum. The management has developed a big goal of expanding its existing presence to at least 400 outlets by next year.
The company has been successful in registering positive EBITDA, and its burn rate is significantly lower, making it a favorable brand in the competitive D2C and retail cafe segments. Chaayos is using its brand equity to take a larger portion of the Indian consumer wallet by balancing the online deliveries against the offline dine-in experiences, which now make about an equal contribution to the business.
The sale of teas, snacks, and beverages remains the main engine of growth of Chaayos, as it represents the overwhelming majority of its revenue. The sale of manufactured goods (including freshly prepared tea and food) was more than 96% of the total revenue, which is approximately ₹300 crore.
The rest of the operating revenue was reported to be from traded goods and services. The non-operating income of ₹19.1 crore was registered by the company, and its total income was pushed to ₹329.7 crore for the fiscal year.
At the expenditure level, Chaayos has shown a disciplined approach at the top of its largest cost centers. The cost of materials also increased by 26% to ₹96.32 crore, mostly in line with the growth in the sales volume, but other key expenses were held down. The reduction in benefits paid to employees was 3% to ₹78.65 crore, which means that staffing was optimized, and labor productivity was improved.
Other material expenses were depreciation and amortization of ₹51.8 crore and commissions, which increased by 21% to ₹31.3 crore. The overall cost to the firm increased by 9% to ₹355 crore, which is quite lower than the rate of its revenue growth.
Conclusion
The 2025 fiscal year has been a record year at Chaayos, with the company registering a reentry into the high-growth highway and a record boost in its profitability. The company has crossed the ₹300 crore revenue and has had a 6.5X increase in EBITDA, which is a testimony to the fact that a disciplined focus on premiumization and operational discipline can bring significant results even in a highly competitive market. As it gears up to expand to 400 outlets, the tea giant seems to be on a strong path of establishing itself as a lucrative market leader in the organized food and beverage market in India.
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