Tea-café chain Chaayos revealed that the company successfully narrowed its net loss to ₹25.4 crore for the fiscal year ended March 31, 2025 (FY25).
This represents a significant 53% reduction in losses compared to the ₹54 crore loss reported in FY24, marking a major step toward the brand’s goal of full net profitability.
1. Financial Performance: The “Turnaround” Year
Chaayos staged a strong recovery in FY25, moving from a period of flat growth to double-digit expansion:
- Operating Revenue: Grew by 25% to reach ₹310.6 crore in FY25, up from ₹248.6 crore in FY24.
- Total Income: Including non-operating sources, the company’s total income crossed the ₹300 crore mark for the first time, ending at ₹329.7 crore.
- EBITDA Surge: The most notable metric was a 6.5x jump in EBITDA, which rose to ₹37 crore, reflecting vastly improved operational efficiency.
2. Cost Management & Efficiency
While revenue grew by 25%, total expenses were kept in check, rising only 9% to ₹355 crore.
- Material Costs: The largest cost head (tea leaves, snacks, etc.) rose 26% to ₹96.3 crore, in line with sales growth.
- Manpower: Employee benefit expenses actually declined by 3% to ₹78.6 crore, suggesting that the company’s investment in automated ordering screens and AI-driven workflow is paying off.
- Unit Economics: Chaayos now spends ₹1.14 to earn one rupee of operating revenue, a sharp improvement from the ₹1.31 it spent in FY24.
3. Strategic Focus: “Meri Wali Chai” at Scale
The FY25 results reflect a successful shift in strategy from “aggressive footprint expansion” to “store-level profitability”:
- Product Mix: Sales of manufactured goods (brewed tea and snacks) accounted for 96% of total revenue.
- Premiumization: The company has leaned heavily into its “premium chai” positioning, allowing for higher average billing per customer (averaging between ₹150–₹300).
- Current Footprint: Chaayos currently operates over 200 outlets across Delhi-NCR, Mumbai, and Bengaluru, with a goal to reach 400 outlets by next year.
4. Funding and Valuation
As of February 2026, the Tiger Global-backed startup remains one of the most well-capitalized players in the Indian “Chai-QSR” (Quick Service Restaurant) space:
- Total Funding: Over $90 million raised to date from marquee investors including Alpha Wave Global, Elevation Capital, and Think Investments.
- Cash Position: As of March 2025, the company reported current assets of ₹155.7 crore, providing a comfortable runway for its next phase of expansion.
Conclusion: On the Verge of Net Profit
Chaayos has successfully navigated the “post-pandemic survival” phase to enter a high-efficiency growth phase. By halving its losses while growing revenue by 25%, the company is now at an inflection point. If the current trajectory holds, Chaayos is expected to report its first-ever net profit in the upcoming FY26 financial year.
