When Babu Rao arrived in Hyderabad in 1975, he had only determination and no train ticket. He found work as a salesman in a textile shop, but had no place to stay. For about 15 days he slept on footpaths and used a railway station waiting room to bathe.
A few months later Rao moved to a restaurant, where he learned the ins and outs of a food business. A customer who saw his work offered him a job at a newly opened café – Niloufer Café. Rao started as a waiter, sweeping floors and washing utensils.
The owner trusted Rao and later handed over the café to him. In 1978, Babu Rao officially founded Café Niloufer. The café’s simple menu of Irani chai and Osmania biscuits quickly won loyal customers.
A 2026 case study noted that the original outlet sold about 20,000 cups of ready‑to‑drink chai a day. Over the years the brand added bakery items, cakes, snacks and packaged tea.
In 2025 the company opened a 40,000‑sq‑ft outlet in Hitech City, described as India’s biggest tea café at the time, seating more than 700 guests.
Financial data show the company’s revenue grew from ₹24.76 cr in FY21 to ₹206 cr in FY25 – an eight‑fold rise. However, net margins fell from 7 % to 3.8 % as costs rose.
Total debt now stands at about ₹1,727 cr against equity of ₹340 cr, reflecting heavy investment in expansion.
ABR Café and Bakers is now working with advisors to raise external capital. A potential transaction could value the company at ₹1,500–1,899 cr, marking a major milestone for a business that began on Hyderabad’s footpaths.