Tata Starbucks narrows FY26 loss to US$5.1M as revenue rises 7% on strong same-store sales growth
Tata Starbucks cut its FY26 losses sharply while boosting revenue and expanding past 500 stores across India, driven by steady demand and disciplined growth.
INDIA – Tata Starbucks Private Limited has reported a significant reduction in its net loss for the fiscal year ended March 31, 2026, supported by steady revenue growth, positive same-store sales performance, and continued expansion across India.
According to the annual report released by parent company Tata Consumer Products Limited, the joint venture reduced its net loss to Rs 49.47 crore (US$5.12M) in FY26, compared with Rs 135.7 crore (US$14.05M) in FY25, marking a notable improvement in financial performance.
The company attributed the narrowing losses to stabilising unit economics and sustained consumer demand across its store network. It recorded positive same-store sales growth during the year, driven by increased footfall and higher average transaction values. As a result, revenue from operations rose 7% year-on-year to Rs 1,367 crore (US$141.51M).
The improvement in financial results coincided with continued expansion of the coffee chain’s retail footprint. Tata Starbucks Private Limited added 23 net new stores during FY26, crossing the milestone of 500 stores in India.
The expansion increased its presence to 80 cities, strengthening its reach in metro markets while accelerating entry into tier-II and tier-III cities.
The company said its growth strategy remains focused on disciplined expansion and operational efficiency.
“Tata Starbucks is expanding with discipline, focusing on calibrated store growth, deeper city penetration, and stronger format innovation,” TCPL stated in its annual report.
Beyond physical expansion, performance was supported by updated consumer strategies, including localized beverage offerings, menu enhancements, seasonal collaborations, and a growing focus on corporate and retail gifting segments.
The report highlighted that future growth will continue to be driven by a balance of expansion and profitability, with emphasis on improving operational efficiency and maintaining sustainable margins.
India remains a key long-term growth market for Starbucks globally, with evolving consumer preferences and pricing sensitivity shaping its strategy in the country.
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