VAHDAM India records Rs 5.2 crore profit for FY25; ad spend increases 16% to Rs 58 crore
The reliance on exports presents potential risks for FY26 due to announced tariffs by the Trump administration. The firm aims to expand in non-US markets to mitigate impact.
ADVERTISEMENT
Direct-to-consumer (D2C) tea brand VAHDAM India reported a net profit of Rs 5.2 crore for the fiscal year ending March 2025. This marks a turnaround from the Rs 17.7 crore loss recorded in FY24.
Filings with the Registrar of Companies (RoC) show revenue from operations increased 19% to Rs 267.5 crore, up from Rs 225.2 crore the previous year. Including non-operating income of Rs 5.9 crore, total revenue for FY25 stood at Rs 273.4 crore.
Export-Led Growth Sales in markets outside India generated the majority of revenue. Exports to the United States, Europe, and Canada contributed Rs 254.5 crore, representing 95% of total sales. This figure grew 21% from Rs 210 crore in FY24. Revenue from the Indian market totaled Rs 12 crore.
Total expenses for the company rose 6% to Rs 268.2 crore for the fiscal year. Transportation constituted the single largest cost center, accounting for 27% of the total at Rs 71.5 crore, a 6% increase from the previous year. Advertising expenditure also saw an uptick, rising 16% to Rs 58 crore. In contrast, material costs remained unchanged at Rs 48 crore, while employee expenses decreased 6% to Rs 27 crore. The remaining expenditure included Rs 21.4 crore in commissions paid to selling agents and Rs 42 crore in overheads covering rent, legal, and professional fees.
Financial Position and Funding The company reported positive unit economics, with Return on Capital Employed (ROCE) at 4% and EBITDA margin at 2.55%. As of March 2025, VAHDAM held current assets of Rs 144.5 crore, including Rs 64.4 crore in cash and bank balances.
Data indicates VAHDAM India has raised over $40 million in total funding. Investors include Fireside Ventures, Sixth Sense Ventures, and IIFL Asset Management. The most recent round injected $3 million, led by SIDBI Venture.
The reliance on exports presents potential risks for FY26 due to announced tariffs by the Trump administration. The firm aims to expand in non-US markets to mitigate impact.
