Costa Coffees India FY25 sales jump 30 pc to ₹198 cr; gross margin declines marginally
The growth was driven by store expansion, as the number of outlets increased from 179 to 220 in FY25, according to the latest annual report of Devynai International Ltd (DIL).
Its revenue from operations was ₹ 151.8 crore, and profit stood at 116.6 crore for the financial year ended March 31, 2024.
Costa Coffee's gross margin declined marginally to 75.4 per cent from 76.8 per cent in FY24, primarily because of inflation in coffee beans and other input materials.
"The brand contribution margin came down from 17 per cent to 16.1 per cent, with average daily sales (ADS) per store declining from ₹ 33,000 to ₹ 27,000, translating into a reduction of same store aales growth (SSSG) from 8.7 per cent to 4.1 per cent during this period," said DIL.
Costa Coffee is operated in India through its franchise partner DIL, a leading QSR (Quick Service Restaurant) chain operator.
Earlier this year, in April, Costa Coffee's Global CEO Philippe Schaillee, who was on a visit here, told PTI that India is going to be among the top five global markets for the British coffee chain brand.
The coffee brand, now owned by beverage major Coca-Cola, is currently among the top ten global markets.
"Costa Coffee is aggressively expanding in India, targeting 40-50 new outlets annually despite global economic uncertainties. DIL sees India as a high-potential market, driven by a growing preference for premium coffee among millennials and Gen Z," said DIL.
This trend is manifest in the fact that the coffee space in the country is growing at 10 to 12 per cent, double the rate of global markets.
"India, which is among Costa's top 10 markets globally, has the potential to get into the top five markets in five years, and Costa Coffee is just the sweetly aromatic spot to seize this strong opportunity," the report said.
According to DIL, India, which is largely a 'chai' (tea) loving nation, is becoming a country of a growing populace of coffee lovers, with a massive cultural shift in its drinking habits over the years.
Coffee is now the first love of many Gen Z Indians influenced strongly by Western culture, which is often a part of their work ethos.
"At Costa Coffee, this has actuated a strong focus on expanding the brand's presence in high footfall locations, such as airports and multiplexes," said DIL.
In the Indian cafe market, Costa Coffee competes with international chains such as Starbucks, Tim Horton, McCafe, and Dunkin'.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
29 minutes ago
- Economic Times
Railways to go airport mode: Luggage to be weighed at stations, fines for oversize bags soon
Synopsis Indian Railways will enforce strict baggage rules, requiring passengers to weigh luggage at select stations, with excess weight or bulky items incurring penalties. Baggage limits will vary by class. Redeveloped stations like Prayagraj Junction will feature premium retail outlets and airport-like amenities. From Dec 2026, only ticketed passengers may access terminal areas, mirroring air travel protocols. PTI The Indian Railways is set to implement strict baggage regulations for train passengers, closely mirroring the practices followed in air travel, said a TOI report. As per proposed rules, travellers will be required to pass their luggage through electronic weighing machines at key railway stations, with permissible weight limits strictly enforced. Those carrying baggage beyond the allowed limit or luggage that is too bulky despite being underweight will be subject to additional charges or Railways plans to roll out premium single-brand stores at revamped stations, offering products like clothing, footwear, electronics, and travel accessories. An official said the initiative aims to enhance passenger convenience, generate additional revenue, and give stations a modern, airport-style allowances differ by travel class—70 kg for AC First Class, 50 kg for AC Two Tier, 40 kg for AC Three Tier and Sleeper Class, and 35 kg for General Class. Oversized luggage that disrupts onboard space may incur penalties, even if within weight limits."The move is aimed at ensuring a more efficient and comfortable travel experience, especially for passengers on long-distance routes," said senior divisional commercial manager (DCM) Himanshu Shukla of the Prayagraj division of NCR. The initial rollout will cover major stations under the NCR zone, including Prayagraj Junction, Prayagraj Chheoki, Subedarganj, Kanpur Central, Mirzapur, Tundla, Aligarh Junction, Govindpuri and at these stations will only be allowed access to the platforms after their baggage has been weighed and cleared within the prescribed limits, said Junction is undergoing a massive redevelopment under the Amrit Bharat Station Scheme, with an investment of Rs 960 crore. The project is set to transform the station into a model rail hub, featuring a nine-storey structure equipped with world-class amenities. Facilities will include spacious waiting lounges, high-speed Wi-Fi, solar energy systems, rainwater harvesting, automated ticket vending machines and digital information Dec 2026, access to the terminal area will be permitted only to passengers with a valid train ticket, which will function as a "boarding pass" — like airports. Non-travellers will need a platform ticket, which will now act as a "visitor pass".Prayagraj Junction's transformation is especially significant considering the massive footfall expected during the upcoming Kumbh and Maha Kumbh festivals. To manage this efficiently, the station will follow a seven Core Service (CS) concept to streamline arrival and departure traffic. The new infrastructure will also be divyang-friendly, culturally integrated and designed as a green building powered by solar energy."Once completed, Prayagraj Junction is set to become a model for station redevelopment, with Kanpur and Gwalior among those expected to follow in its footsteps," said Shukla. (With TOI inputs)
Mint
29 minutes ago
- Mint
Nifty 50's decade-long rally faces valuation risks, said Equirus; picks 28 large and midcap stocks
Indian equities have delivered one of the strongest multi-year rallies globally, with the Nifty 50 climbing from around 8,400 in December 2014 to over 26,000 by September 2024, despite multiple corrections. According to Equirus Securities, this surge has been fueled by resilient domestic demand, aggressive policy support, and robust corporate earnings. Yet, with valuations well above historical averages, the brokerage stresses that sustaining momentum will hinge on consistent earnings delivery. Equirus noted that the index weathered the 2015–16 slowdown, the March 2020 COVID crash near 8,000, and the 2022 global tightening-led pullback. Post-pandemic, the rally was driven by fundamentals — India's five-year EPS CAGR of ~18% is the highest globally, while ROE has averaged ~15%, second only to the US. However, valuations now exceed long-term bands, reflecting rich pricing for future growth. Going ahead, the brokerage believes that near-term leadership is expected to shift toward largecaps and quality midcaps, while smallcaps face stretched valuations. Auto, Cement, NBFCs, and FMCG are among Equirus' overweight calls, while sectors such as Building Materials, Industrials, and Defense remain underweight. Equirus flagged caution on smallcaps, pointing out that the Nifty Smallcap 100 trades at a significant premium to its 10-year +1 standard deviation, despite earnings cyclicality that makes them vulnerable in risk-off phases. Midcaps, though also trading above historical multiples, enjoy stronger earnings visibility thanks to sectoral tailwinds and balance sheet improvements. Largecaps, while not cheap, remain closer to their long-term bands and offer a better margin of safety. Equirus highlighted that smallcap forward P/E stands at 1.25x vs. its long-term average of 0.88x, close to peak valuations, while Nifty 50 itself trades above its 10-year average. With CY25 EPS forecasts cut by 13.8% — the steepest since the pandemic — the brokerage advises a barbell approach: favoring largecaps for safety, selective midcaps for structural growth, and caution in smallcaps until earnings catch up. Equirus' top 28 stock picks span across largecaps, midcaps, and smallcaps. Largecap ideas: ABB India, BPCL, Cholamandalam Investment, Godrej Consumer, HDFC Bank, Infosys, JSPL, Ultratech Cement. Mid- and small-cap ideas: AB Real Estate, Alkem Labs, Arvind Fashions, Avalon Tech, Berger Paints, Blue Star, Federal Bank, Gateway Distriparks, Grindwell Norton, Hero MotoCorp, IGL, JK Lakshmi Cement, Jyothy Labs, Lumax Industries, Marico, PI Industries, PNC Infratech, Polycab India, Prudent Corporate, Ujjivan Small Finance Bank. According to Equirus, these companies combine sectoral tailwinds, strong balance sheets, and earnings visibility, making them attractive in a market where valuation discipline is critical. Source: Equirus Equirus further emphasized that Nifty earnings downgrades remain a recurring theme. Over the past decade, EPS estimates have almost always ended lower than initial projections, with cuts ranging from ~2% to ~37%. For CY25, downgrades already stand at -13.8% (from 1,289.7 to 1,111.6), the steepest since the pandemic. CY24 saw a relatively moderate 4% cut, though late-year downgrades emerged across global cyclicals and domestic consumption. The brokerage pointed out that deep early cuts, such as those for CY25, often signal cautious assumptions for the following fiscal year. Unless a strong macro or earnings surprise emerges, recovery remains uncertain. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Hans India
29 minutes ago
- Hans India
Additional US tariffs to impact $48 billion of India's exports, govt to safeguard trade: Minister
If America imposes additional 25 per cent on India, around $48.2 billion of India's merchandise export to the US is likely to be subject to those tariffs, the Parliament was informed on Tuesday. Reciprocal tariff at the rate of 25 per cent has been imposed on certain goods exported from India to the US, starting from August 7. Further, additional rate of duty of 25 per cent with effect from August 27 has been imposed on certain goods exported from India. 'The government has taken note of tariff imposition by the US. It is estimated that around $48.2 billion of India's merchandise export (based on 2024 trade value) to the US will be subject to the above additional tariffs,' Minister of State for Commerce and Industry Jitin Prasada said in a written reply to a question in Lok Sabha. He further said that the government is committed to secure and advance country's national interest and protect the welfare of our farmers, workers, entrepreneurs, exporters, MSMEs and all sections of industry and 'take all necessary steps to help mitigate impact on trade including through appropriate export promotion and trade diversification measures'. It is estimated that around 55 per cent of the total value of India's merchandise exports to the US is subject to the 25 per cent first line of US reciprocal tariffs. No additional tariffs have been imposed on Indian exports to the US in sectors like pharmaceuticals and electronics as yet. According to the minister, a combination of different factors, such as product differentiation, demand, quality, and contractual arrangements, would determine the impact of reciprocal tariffs on India's exports, including in the textiles sector. New Delhi has reiterated that the latest tariff actions by US President Donald Trump are "unfair, unjustified and unreasonable". "We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India," the government had said in a statement.
