PRO FX Tech tunes up FY26 revenue to Rs 177 crore as profit climbs 24 per cent

MUMBAI: Tata Starbucks narrowed its net loss sharply in FY26 as stronger sales, steady store additions and a more measured expansion strategy helped the coffee chain gain ground in an increasingly competitive café market.

The company reported a net loss of Rs 49.47 crore for FY26, down more than 60 per cent from Rs 135.7 crore in FY25, according to the latest annual report of Tata Consumer Products.

Revenue for the year rose 7 per cent year-on-year to Rs 1,367 crore, driven by network expansion, positive same-store sales growth and higher traction across beverages, food and gifting categories.

Tata Starbucks operates cafés in India through a 50:50 joint venture between Tata Consumer Products and Starbucks Corporation.

During FY26, the company added 23 net new stores, taking its overall footprint past the 500-store milestone across 80 Indian cities. The expansion also reflected a wider push beyond metros, with the brand increasing its presence in Tier II and Tier III markets while continuing to deepen its hold in larger urban centres.
BENGALURU: PRO FX Tech Limited struck a higher note in FY2025-26, reporting a 36.6 per cent jump in revenue to Rs 176.72 crore and a 23.9 per cent rise in profit after tax to Rs 15.17 crore, as demand for premium home entertainment and integrated AV solutions continued to gain volume across India.

The company, known for its presence in high-end home audio, automation and integrated AV systems, said growth during the year was powered by stronger execution across both retail and B2B segments, alongside rising consumer appetite for experience-led and premium technology purchases.

Revenue for the financial year rose to Rs 176.72 crore from Rs 129.37 crore in FY25. EBITDA increased 17 per cent year-on-year to Rs 20.26 crore, while PAT climbed to Rs 15.17 crore from Rs 12.24 crore a year earlier.

EBITDA margin for FY26 stood at 11.47 per cent compared to 13.38 per cent in FY25, while PAT margin came in at 8.58 per cent versus 9.46 per cent in the previous year.

The company also closed the March quarter on a strong footing. Q4 FY26 revenue rose 35.36 per cent year-on-year to Rs 49.70 crore, while quarterly EBITDA surged 42.31 per cent to Rs 7.75 crore. Profit after tax for the quarter nearly doubled, rising 99.7 per cent to Rs 6.12 crore.

Quarterly EBITDA margins improved to 15.6 per cent from 14.84 per cent in the same quarter last year, while PAT margins expanded to 12.32 per cent from 8.35 per cent.

Despite macroeconomic uncertainty and currency-related pressures during the year, the company said it managed to protect growth through tighter cost controls, diversified sourcing strategies, stronger inventory buffers and selective pricing increases.

The distribution business, which remains the company’s largest vertical, continued to be a key growth engine. Distribution revenue rose 30.6 per cent year-on-year in FY26, increasing from Rs 89.86 crore in FY25 to Rs 117.36 crore.

Meanwhile, the direct sales segment spanning retail and corporate business delivered even faster growth, climbing 50.3 per cent from Rs 39.50 crore to Rs 59.36 crore during the year.

The company also strengthened its global brand partnerships in FY26. It deepened relationships with professional audio majors Peavey and Crest Audio, while adding premium hi-fi brand Hegel to its portfolio to strengthen its position in the two-channel stereo segment.

Its premium solutions business spans residential, commercial and institutional projects, with clients including Adani Group, Reliance Group and Tata Group.

Commenting on the results, PRO FX Tech Limited managing director Manmohan Ganesh said, “FY26 was a year of consolidation of brands, partnerships and capabilities which has significantly strengthened our foundation across both retail and B2B segments.”

He added that resilient demand across residential, corporate and institutional categories, particularly in premium audio, home automation and integrated AV solutions, helped support the company’s performance despite a challenging environment.

Ganesh also pointed to structural shifts in consumer behaviour, saying rising affluence, digital consumption, streaming, gaming and hybrid work lifestyles were accelerating demand for immersive entertainment and smart living experiences across urban India and increasingly in Tier-II cities as well.

As premium consumption moves beyond metros and Indian consumers continue turning homes into personalised entertainment hubs, PRO FX Tech appears keen to ensure the sound of growth stays loud and clear.

The company said growth during the year was supported not only by store additions but also by innovation across beverage and food offerings, seasonal tie-ups and an expanded gifting portfolio designed to drive repeat engagement.

Tata Starbucks also recorded positive same-store sales growth during the year, indicating that existing outlets operational for more than a year continued to attract higher customer spending and footfalls.

The improved numbers come amid a broader recalibration of the company’s India strategy. With discretionary spending under pressure and competition intensifying in the out-of-home dining and café segment, the joint venture has increasingly shifted focus towards calibrated growth, tighter unit economics and operational efficiency.

According to the company, store rollouts during FY26 were undertaken in a phased and disciplined manner, with profitability taking precedence over rapid expansion.

In its annual report, Tata Consumer Products said, “Tata Starbucks is expanding with discipline, focusing on calibrated store growth, deeper city penetration and stronger format innovation.”

The company added that the strategy is aimed at maintaining the premium positioning of the Starbucks brand while widening accessibility across both established metros and emerging consumption hubs.

India remains one of the key long-term growth markets for Starbucks globally, but the path is increasingly being shaped by local tastes, pricing sensitivities and evolving consumer habits. Industry watchers say global café chains are now balancing ambition with caution as competition from homegrown coffee brands, quick-service chains and boutique cafés continues to intensify.

For Tata Starbucks, FY26 appears to have been less about a caffeine-fuelled sprint and more about brewing sustainable growth, one carefully chosen location at a time.