Tata Starbucks is aggressively expanding its presence in India, planning to add 50 to 100 new stores annually. This expansion is supported by improving financial performance, with the company becoming EBITDA and EBIT positive during FY26. While the company previously aimed for 1,000 stores by 2028, recent discussions with Starbucks Corporation suggest a long-term potential for as many as 8,000 Starbucks outlets in India, reflecting confidence in the country's growing coffee market.
The 50:50 joint venture between Tata Consumer Products and Starbucks Corporation currently operates 502 stores across India, having added a net 23 outlets in FY26. For FY26, revenue from operations increased 7% year-on-year to ₹1,367 crore (approximately $164 million USD), and net losses significantly narrowed to ₹49.47 crore (approximately $5.9 million USD) from ₹135.7 crore (approximately $16.3 million USD) in the previous year. This improved financial trajectory is attributed to store expansion, positive same-store sales growth, operational discipline, product innovation, and cost optimization.
Despite previous challenges, including widening losses of ₹135.7 crore in FY25, and a focus from the CEO on profitable growth rather than just scale, the company has now achieved profitability milestones. Tata Starbucks is now prioritizing improving margins while continuing its network expansion, aiming to leverage its global expertise, local adaptations, and sustainability efforts to capture the promising Indian consumer market.
