Tata Starbucks reported a widened net loss of ₹135.7 crore for FY25, even as its revenue rose by 5% to ₹1,277 crore, according to the latest annual report released by Tata Consumer Products Ltd (TCPL).
The company, a 50:50 joint venture between TCPL and the US-based Starbucks Corporation, had posted a loss of ₹82.16 crore in FY24.
TCPL, which plans to expand its network to 1,000 Starbucks outlets by the end of FY28, attributed the revenue growth to continued store expansion. In FY25, Starbucks opened 58 net new stores and expanded into 19 new cities, bringing its total footprint to 479 stores across 80 cities.
“Revenue from operations reached ₹1,277 crore, marking a 5% increase, driven primarily by an increase in the number of stores,” TCPL noted. The company also highlighted that Tata Starbucks is now the largest organised café chain in India based on the number of outlets.
However, the QSR (Quick Service Restaurant) industry experienced overall demand softness during the year, which led to subdued sales growth and pressured margins.
Despite short-term challenges, Starbucks remains optimistic about its long-term prospects in India. The company noted that while store expansion may proceed at a moderate pace in the near term, it is committed to reaching 1,000 outlets by FY28.
The Indian café market remains significantly under-penetrated when compared to countries with similar GDP per capita, the report observed.
In FY25, TCPL invested ₹125 crore in Tata Starbucks. The company is also eyeing growth through its new vending business, Tata MyBistro, which offers a range of coffee, tea, and beverages tailored for institutional clients.
