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Tata Starbucks, the 50:50 joint venture between Tata Consumer Products and Starbucks Corporation, has established itself as one of India’s largest coffee chains by revenue and store count. While the company has grown over the years, its bottom line remains in the red. Starbucks’ revenue from operations grew a modest 7% year-on-year to Rs 1,367 crore in FY26 from Rs 1,277 crore in FY25, according to its standalone financial statements sourced from the Registrar of Companies (RoC). Incorporated in September 2011, the company operates cafes across India under the Starbucks brand. By 2025, Tata Starbucks had expanded to over 390 stores across 54 Indian cities, with approximately 4,300 partners (employees). Importantly, the company aims to expand its network to around 1,000 stores by 2028. The sale of coffee and related products accounted for most of its revenue. The remaining income came from its loyalty programme, My Starbucks Rewards, through which customers earn loyalty points called Stars. The procurement of coffee beans and other related products accounted for 24% of the company’s total expenditure. This cost increased 6% to Rs 356 crore in FY26 from Rs 336 crore in FY25. Employee benefit expenses also rose 9.8% to Rs 225 crore during the same period. Rent, electricity, advertising, freight and other overheads took total expenses up 4.7% to Rs 1,514 crore in FY26 from Rs 1,446 crore in FY25. With controlled spending, Starbucks narrowed its net loss by 27% to Rs 99 crore in FY26 from Rs 136 crore in FY25. However, its EBITDA stood at Rs 234 crore during the year. At a unit level, the company spent Rs 1.11 to earn every rupee of operating revenue. On a standalone basis, its return on capital employed (ROCE) stood at -2.6%, while its EBITDA margin was 17%. Its closest competitor, Café Coffee Day, reported revenue of Rs 1,094 crore and a net profit of Rs 14 crore. Starbucks also competes with several newer coffee brands, including Blue Tokai, Rage Coffee, Third Wave Coffee Roasters, Slay Coffee, Sleepy Owl and Seven Beans Co. As newer coffee brands build their own loyal customer base, competition in India’s coffee market is getting stronger. For Starbucks, the challenge is not just to expand its store network but to get customers to keep coming back for its premium offerings. The question is whether India’s appetite for expensive coffee is deep enough to support its ambitious expansion plans while bringing its bottom line into the black. For Starbucks, a business that looks unlikely to hit the $200 million mark by 2030 raises its own issues of attention and perhaps, even relevance, if profits remain elusive.
document fetched 2026-10-31 02:57