Tata Starbucks reports ₹135.7 crore loss in FY25 despite 5% revenue growth
Tata Starbucks' loss has widened to ₹135.7 crore in FY25, but its revenue increased by 5 per cent to ₹1,277 crore, according to the latest annual report of Tata Consumer Products Ltd (TCPL).
Tata Starbucks, which operates the QSR chain of Starbucks cafes in a 50:50 JV with TCPL and US-based Starbucks Corporation, had reported a net loss of ₹82.16 crore in FY24.
TCPL, which aims to have a network of 1,000 cafes by the end of FY28, is experiencing revenue growth, helped by the expansion of a number of stores. Starbucks has opened 58 net new stores and entered 19 new cities in FY25, taking the count to 479 stores across 80 cities.
"The revenue from operations stood at ₹1,277 crore, improved by 5 per cent...driven by a higher number of stores," TCPL, the FMCG arm of Tata Group, said adding that it has now become the largest organised cafe operator in India based on store count.
The year witnessed demand softness in the overall QSR (Quick Service Restaurant) space. Consequently, the sales growth was subdued, and profitability remained muted.
Starbucks continue to focus on long-term business opportunities in India, it said.
"Tata Starbucks is the largest organised cafe operator in India based on store count, though the industry is significantly under-penetrated in comparison to similar per capita income GDP countries," it said.
Despite a more moderate number of store openings in the short term, the JV "remains committed to increasing our store base in India and get to 1,000 outlets by FY28," it added.
In FY25, TCPL has invested ₹125 crore in Tata Starbucks.
Besides, it also expects growth from its vending business 'Tata MyBistro', a new entrant in the segment offering a variety of coffee, tea and other drinks mainly to institutional customers.
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