Tata Consumer Products is progressing steadily toward its goal of opening 1,000 Starbucks outlets in India by FY28, according to MD and CEO Sunil D’Souza. Speaking on the company’s vision, he confirmed that the long-term target remains unchanged, although store openings will be calibrated based on market conditions.
The coffee business is showing signs of recovery, with same-store sales growth improving from a low double-digit decline at the start of FY25 to flat growth by the end of the fiscal. Despite a temporary slowdown in outlet expansion, D’Souza expressed confidence in hitting the 1,000-store mark within the projected timeline.
In Q4 FY25, Tata Consumer Products posted a robust 59% year-on-year increase in net profit to ₹345 crore, driven by double-digit growth in its core food and beverage segment, which accounts for nearly 70% of its revenue. Consolidated revenue rose 17% to ₹4,608 crore.
While EBITDA margins were slightly compressed, mainly due to a 25–30% surge in tea prices, D’Souza expects margins to improve as new crop supplies ease cost pressures. He added that the company will take calibrated price increases in FY26.
Internationally, the UK business performed strongly, positioning Tata as the number two tea brand in the market with solid margins. However, the US division experienced volatility due to fluctuating coffee prices. Still, the company reported a 5% topline and 21% EBIT growth in global operations, signaling a strong overall recovery.
