Starbucks holds ground in India as Tata JV narrows losses
Starbucks crossed 500 Indian stores, but FY26 growth came from tighter expansion, stronger same-store sales and a much smaller loss.
Starbucks is still expanding in India, but Tata Starbucks is doing it on a far stricter leash. The joint venture crossed 500 stores across 80 cities in FY26, lifted revenue 7 per cent to Rs 1,367 crore and narrowed its net loss to Rs 49.47 crore, while posting a third straight quarter of positive like-for-like sales growth.
That combination matters because the chain added only 23 net new stores during the year, a much slower pace than the 58 net new openings it delivered in FY25 and the 95 it added in FY24. Instead of chasing a store-count sprint, Tata Starbucks leaned more heavily on deeper city penetration, local pricing, beverage innovation, new food offerings, seasonal collaborations and gifting to keep growth moving.
The shift is a clear break from the ambition Tata Starbucks set out in January 2024, when it said it aimed to operate 1,000 cafes in India and double its workforce by 2028. Later that year, the company said it would rein in outlet growth after high inflation dented consumer confidence, even as it kept saying it remained on track for the 2028 target. The message now is less about speed and more about durability.
The latest year also showed how much the chain has changed its growth formula. FY25 ended with 479 stores across 80 cities after 58 net new openings and 19 new cities. FY24 was faster still, with 95 new stores and 20 new cities, including more Tier 2 city expansion, drive-thrus, airport locations and 24-hour stores. By FY26, the emphasis had moved away from broad rollout and toward making each market, format and menu update work harder.
That is why the sales trend is so important. A third consecutive quarter of positive like-for-like growth suggests existing cafes are carrying more of the load, which is exactly what a more disciplined market needs if it wants to grow without sacrificing margins. For Tata Starbucks, the headline is no longer just expansion. It is the ability to keep revenue rising, losses narrowing and the brand relevant in a market that is now clearly in its prove-profitability-first phase.
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