Tata Starbucks trims FY26 loss to Rs 49 crore as India footprint brews bigger

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.

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.