Starbucks India cuts FY26 losses 27% as revenue hits ₹1,367cr
What's the story
Starbucks India has reported a modest 7% year-on-year growth in its revenue from operations for fiscal year 2026 (FY26). The company's standalone financial statements, sourced from the Registrar of Companies (RoC), show that its revenue increased to ₹1,367 crore in FY26 from ₹1,277 crore in FY25. The growth comes despite an increasingly competitive coffee market in India with new players entering the fray.
Expansion plans
Plans to expand to nearly 1,000 stores by 2028
Tata Starbucks, a 50:50 joint venture between Tata Consumer Products and Starbucks Corporation, has grown into one of India's largest coffee chains by revenue and number of stores.
The company had more than 390 stores in 54 Indian cities by 2025 and about 4,300 partners (employees).
It plans to further expand its network to nearly 1,000 stores by 2028.
Revenue sources
Revenue model diversifies with loyalty program
The bulk of Starbucks India's revenue comes from the sale of coffee and related products.
The rest comes from its loyalty program, My Starbucks Rewards, where customers can earn loyalty points called Stars.
This diversified approach to revenue generation has helped the company stay afloat in a competitive market with several new entrants like Blue Tokai, Rage Coffee, Third Wave Coffee Roasters, Slay Coffee, Sleepy Owl, and Seven Beans.
Financial performance
Net loss reduced by 27%
Despite the increased competition and rising costs, Starbucks India managed to cut its net loss by 27% to ₹99 crore in FY26 from ₹136 crore in FY25.
The company's EBITDA stood at ₹234 crore during the year.
At a unit level, it spent ₹1.11 to earn every rupee of operating revenue, with a standalone return on capital employed (ROCE) of -2.6% and an EBITDA margin of 17%.