Tata Starbucks, the joint venture between Tata Consumer Products and Starbucks Corporation, reported revenue from operations of ₹1,367 crore in financial year 2025-26 (FY26), marking a 7% increase from ₹1,277 crore in FY25. The company also reduced its net loss by approximately 27%, bringing it down to ₹98.95 crore from ₹135.7 crore in the previous financial year.
The improvement came as the coffee chain expanded its Indian network beyond 500 stores and recorded positive same-store sales growth. However, despite improving operating performance, Tata Starbucks remains loss-making at the net-profit level. Its next challenge will be to convert revenue growth and a larger store network into sustainable profitability.
Key Takeaways
- Revenue: ₹1,367 crore in FY26, up 7% year-on-year.
- Net loss: ₹98.95 crore, down approximately 27% from ₹135.7 crore.
- Store network: 502 outlets across 80 cities as of March 31, 2026.
- Expansion: The company opened 23 net new stores during FY26.
- Operating performance: EBITDA reached ₹234 crore, with a reported margin of approximately 17%.
- Growth strategy: Tata Starbucks is targeting further expansion while focusing on store productivity and profitability.
Tata Starbucks Revenue Rises 7% in FY26
Tata Starbucks generated ₹1,367 crore in revenue from operations during FY26, compared with ₹1,277 crore in FY25. This represents an increase of approximately ₹90 crore over the previous year.
The growth was supported by new store openings, positive same-store sales growth and product innovation. The company introduced new beverages and food offerings, seasonal collaborations and an expanded gifting portfolio to attract customers.
Same-store sales growth is particularly important for a retail business because it measures sales growth at outlets that have been operating long enough to provide a comparable performance baseline. Positive growth suggests that revenue improvement was not driven entirely by opening additional locations.
Coffee and related products remained the primary source of revenue. The company’s My Starbucks Rewards loyalty programme also contributed to its business through customer engagement and repeat purchases.
Net Loss Falls to ₹98.95 Crore
Tata Starbucks reduced its net loss to ₹98.95 crore in FY26, compared with ₹135.7 crore in FY25. The improvement reflects higher revenue and efforts to manage operating costs.
The company also reported EBITDA of ₹234 crore during the financial year, with an EBITDA margin of approximately 17%. EBITDA measures earnings before interest, taxes, depreciation and amortisation. It helps assess operating performance before several financing and accounting costs are considered.
Importantly, positive EBITDA does not mean the company has become profitable after all expenses. Tata Starbucks continued to report a net loss after accounting for depreciation, interest and other applicable costs.
The gap between operating earnings and net profit remains an important indicator to monitor as the business expands.
Tata Starbucks Financial Performance: FY25 vs FY26
| Financial metric | FY25 | FY26 | Change |
|---|---|---|---|
| Revenue from operations | ₹1,277 crore | ₹1,367 crore | +7% |
| Net loss | ₹135.7 crore | ₹98.95 crore | Down 27% |
| Total expenses | ₹1,446 crore | ₹1,514 crore | +4.7% |
| Coffee beans and related purchases | ₹336 crore | ₹356 crore | +6% |
| Employee benefit expenses | — | ₹225 crore | +9.8% |
| EBITDA | — | ₹234 crore | — |
| EBITDA margin | — | 17% | — |
Figures are based on reported company disclosures and financial reporting. Dashes indicate figures not specified in the cited comparison.
Expenses Rise as the Store Network Expands
Tata Starbucks’ total expenses increased 4.7% to ₹1,514 crore in FY26 from ₹1,446 crore in FY25. The increase was slower than the 7% growth in revenue, helping improve the company’s financial performance.
Coffee beans and related product purchases rose 6% to ₹356 crore from ₹336 crore. These purchases accounted for approximately 24% of total expenditure.
Employee benefit expenses increased 9.8% to ₹225 crore. The company also incurred costs related to store rentals, electricity, advertising, freight and administrative overheads.
For every ₹1 of operating revenue, Tata Starbucks spent approximately ₹1.11. This indicates that the business still needs to improve its overall cost structure and revenue generation to achieve net profitability.
Starbucks India Crosses 500 Stores Across 80 Cities
Tata Starbucks reached 502 stores across 80 Indian cities by March 31, 2026. The company opened 23 net new outlets during FY26, crossing the milestone of 500 stores.
Its expansion strategy is focused on strengthening its presence in existing markets while entering selected new locations. The company has also been building its presence in Tier II and Tier III cities, alongside established metropolitan markets.
Tata Starbucks has previously outlined an ambition to reach approximately 1,000 stores by 2028. Tata Consumer Products Chairman N. Chandrasekaran has also discussed adding around 50–100 stores annually and said the Indian market could eventually support a much larger network.
However, store expansion alone will not guarantee profitability. New outlets require investment in property, equipment, employees, inventory and marketing. The company will need sufficient customer demand and strong sales per outlet to justify those investments.
Competition Intensifies in India’s Coffee Market
Starbucks operates in India’s premium café segment, where competition has expanded beyond established chains.
Its competitors include Café Coffee Day, Costa Coffee, Blue Tokai, Third Wave Coffee Roasters, Tim Hortons and several emerging coffee brands. These companies compete through pricing, product variety, store locations, customer experience and delivery availability.
Café Coffee Day reported revenue of ₹1,094 crore and a net profit of ₹14 crore, according to figures cited in recent industry coverage. While this provides a broad comparison of business scale, the companies have different operating models and cost structures.
Starbucks’ premium positioning gives it an established brand proposition, but it also makes pricing and customer spending important factors. As more coffee brands target urban consumers, the company must maintain customer loyalty while improving the economics of individual stores.
The Bigger Picture
Tata Starbucks’ FY26 performance reflects a business making progress on two fronts: growing its revenue and reducing its losses. Revenue increased 7%, while the net loss narrowed by approximately 27%. Positive same-store sales growth and EBITDA of ₹234 crore suggest that its operating performance is improving.
The next phase will test whether this progress can continue as the company adds more outlets. A larger network can improve brand visibility and operational efficiencies, but it also brings additional costs and capital requirements. The company’s ability to increase sales at existing stores, manage expenses and improve returns on invested capital will be central to its long-term performance.
Looking Ahead
Tata Starbucks is expected to continue expanding its Indian store network while focusing on operational efficiency and customer experience. Its ambition to reach approximately 1,000 stores by 2028 provides a significant expansion target, although the pace of new openings will need to remain aligned with demand and store-level economics.
For investors and the wider café industry, the key indicators to watch will be revenue growth, same-store sales, EBITDA margins, net losses and the performance of newly opened outlets. The FY26 results show that Tata Starbucks is moving towards better financial performance, but consistent net profitability remains the larger milestone.
Frequently Asked Questions
1. What was Starbucks India’s revenue in FY26?
Tata Starbucks reported revenue from operations of ₹1,367 crore in FY26, compared with ₹1,277 crore in FY25.
2. How much did Starbucks India’s net loss decline?
Its net loss declined by approximately 27% to ₹98.95 crore in FY26 from ₹135.7 crore in FY25.
3. How many Starbucks stores are there in India?
Tata Starbucks operated 502 stores across 80 Indian cities as of March 31, 2026.
4. Is Starbucks India profitable?
Not at the net-profit level. The company reported EBITDA of ₹234 crore in FY26 but still recorded a net loss of ₹98.95 crore.
5. Who owns Starbucks India?
Starbucks operates in India through Tata Starbucks, a 50:50 joint venture between Tata Consumer Products and Starbucks Corporation.
6. What is Starbucks India’s store expansion target?
The company has previously outlined a target of approximately 1,000 stores by 2028. Tata Consumer Products Chairman N. Chandrasekaran has also discussed adding around 50–100 stores annually.
Get the day’s top stories in your inbox
One concise email. No spam, unsubscribe anytime.
