VAHDAM India Reports Significant Profit Growth in FY26
VAHDAM India has experienced impressive growth, with the direct-to-consumer tea brand achieving profitability in FY25 and further amplifying its success in FY26. The net profit soared over six times to reach Rs 32 crore. The brand continues to generate nearly all its revenue from international markets, with the US being its primary focus.
In FY26, VAHDAM India’s operational revenue increased by 31% compared to the previous year, rising from Rs 267.5 crore in FY25 to Rs 349.6 crore, according to the consolidated financial statement submitted to the Registrar of Companies.
Operational Revenue and Market Breakdown
As an e-commerce platform specializing in teas, spices, and superfoods, VAHDAM India sources its products directly from Indian farms and sells them within the country and across critical global markets, including the US, Canada, and Europe. Sales from these categories represented the company’s primary revenue source during the fiscal period.
International markets dominated VAHDAM’s revenue, accounting for nearly 96% of total operational revenue at Rs 335.3 crore. The US market contributed significantly, with over 53% of revenue at nearly Rs 187 crore. Europe followed with contributions of Rs 97.8 crore, while other regions around the globe added Rs 50.65 crore. In stark contrast, the Indian market only contributed Rs 14.3 crore, making up just over 4% of overall operational revenue.
Additional Income and Expenses
The company also garnered Rs 10.2 crore in non-operating income, leading to a total revenue of Rs 359.8 crore in FY26. For the direct-to-consumer firm, advertising and promotional costs became the highest expenditure at Rs 95.9 crore, marking a 65% year-on-year increase. Transportation costs were the second-largest expense, totalling Rs 70 crore.
Material costs rose by 32% year-on-year to Rs 63.4 crore. Employee expenses increased by 30% to Rs 35 crore, which included Rs 3.76 crore in ESOP expenses. VAHDAM India also disbursed Rs 28.9 crore in commissions to selling agents. Other operational expenses—comprising rent, legal fees, professional wages, and various miscellaneous costs—totalled Rs 41.4 crore, leading to overall costs of Rs 334.6 crore in FY26, up from Rs 268.2 crore in FY25.
Profitability and Financial Metrics
Ultimately, the company’s net profit jumped to Rs 32.2 crore in FY26, a stark increase from Rs 5.2 crore in FY25, largely driven by the surge in international revenue. VAHDAM India also witnessed improvements in its Return on Capital Employed (ROCE) and EBITDA margin, enhancing to 9.5% and 5%, respectively. Additionally, EBITDA rose significantly to Rs 17.5 crore during the fiscal period, growing 2.7 times.
On a unit basis, the firm invested Rs 0.96 to generate a single rupee of operational revenue in FY26. By the close of March 2026, VAHDAM India recorded Rs 154 crore in current assets, which included Rs 42 crore in cash and bank balances.
To date, VAHDAM India has successfully raised over $40 million in funding, including a recent $3 million round led by SIDBI Venture last year. Key investors comprise Fireside Ventures, Sixth Sense Ventures, and IIFL Asset Management.