Chaayos Crosses Rs 300 Cr Revenue in FY25; EBITDA Jumps 6.5X
•February 9, 2026
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Companies Mentioned
Why It Matters
The turnaround demonstrates that niche QSR concepts can achieve scalable profitability in India, attracting further investor capital and intensifying competition in the specialty beverage segment.
Key Takeaways
- •Revenue hit Rs 310.6 crore, up 25% YoY
- •EBITDA surged to Rs 37 crore, 6.5× increase
- •Losses narrowed to Rs 25.4 crore, down 53%
- •Outlets target 400 by FY26, doubling footprint
- •Material costs rose 26%, pressuring margins
Pulse Analysis
Chaayos’ FY25 performance marks a pivotal shift for India’s specialty tea market, where consumer appetite for premium, customizable beverages has been rising steadily. After a stagnant FY24, the chain leveraged its strong brand presence in Delhi‑NCR, Mumbai and Bengaluru to capture higher footfall and online orders, translating into a 25% revenue uplift. This growth aligns with broader trends of urban millennials seeking experiential dining options, positioning Chaayos as a bellwether for niche quick‑service concepts that blend convenience with personalization.
The financial uplift stems largely from disciplined cost management and improved unit economics. While material costs climbed 26%—reflecting higher tea leaf and snack input prices—Chaayos trimmed employee benefits and optimized commission structures, driving EBITDA to Rs 37 crore and lifting the EBITDA margin to nearly 12%. The company now spends just Rs 1.14 for every rupee of operating revenue, a notable efficiency gain that narrows losses and signals a sustainable path to profitability, even as inflationary pressures persist across the food‑service sector.
Looking ahead, Chaayos’ aggressive expansion to 400 outlets by FY26 underscores its confidence in scaling the model. Backed by more than $90 million in funding, including a $45 million Series C led by Alpha Wave, the firm is poised to deepen market penetration and explore new formats such as cloud kitchens. Investors will watch how the chain balances rapid outlet rollout with margin preservation, while competitors may accelerate their own specialty beverage offerings to capture a share of the burgeoning tea‑centric consumer spend.
Chaayos crosses Rs 300 Cr revenue in FY25; EBITDA jumps 6.5X
After flat revenue growth in FY24, tea café chain Chaayos staged a strong comeback in the fiscal year ended March 2025 and posted 25% revenue growth to cross the Rs 300 crore mark. During the same period, the company narrowed its losses by 53%, while EBITDA jumped 6.5 times.
Chaayos’ revenue from operations grew by 25% to Rs 310.6 crore in FY25 from Rs 248.6 crore in FY24, according to its consolidated financial statement filed on the Registrar of Companies (Roc).
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Founded in 2012 by Nitin Saluja and Raghav Verma, Chaayos sells a variety of teas and other snacks and beverages with dine-in, takeaways, and online ordering facilities. It has over 200 outlets across Delhi-NCR, Mumbai and Bengaluru. The company is aiming to have 400 outlets by next year.
The sale of teas, snacks, and beverages remained the firm’s primary revenue source. Sales of manufactured goods accounted for over 96% of total revenue at Rs 300 crore, while sales of traded goods stood at Rs 9.5 crore.
The company generated Rs 19.1 crore from non-operating income, which took its total income to Rs 329.7 crore in the last fiscal year.
On the expense front, Chaayos’ largest cost component, the cost of materials, rose 26% year-on-year to Rs 96.32 crore in FY25. Employee benefits expenses declined marginally by 3% to Rs 78.65 crore. Other major costs included depreciation and amortization at Rs 51.8 crore and commissions, which increased 21% to Rs 31.3 crore.
Finance cost and advertisement expenses were recorded at Rs 29.42 crore and Rs 14.55 crore respectively. Other expenses, including power & fuel, legal & professional, travelling expenses added another Rs 53 crore to total expenses for the firm, which increased 9% to Rs 355 crore in FY25.
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A 25% increase in revenue from operations, along with tighter cost control across verticals, helped Chaayos cut its losses by 53% to Rs 25.4 crore in FY25. The company also posted a sharp improvement in profitability, with EBITDA rose nearly 6.5X to Rs 37 crore, while ROCE and EBITDA margin improved to -3.72% and 11.85%, respectively.
On a unit basis, the company spent Rs 1.14 to earn one rupee of operating revenue in FY25. As of March 2025, the Tiger Global–backed firm reported current assets of Rs 155.7 crore, which included Rs 17 crore in cash and bank balances.
Chaayos has raised over $90 million across multiple funding rounds, including its $45 million Series C round in June 2022 led by Alpha Wave, with participation from Elevation Capital, Tiger Global, and Think Investments.
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