Tata Starbucks, the 50:50 joint venture between Tata Consumer Products and Starbucks Corporation, has narrowed its net loss in FY26 and crossed the 500-mark in terms of stores. The disclosures were made in Tata Consumer’s FY26 annual report released on Monday.

The improved financial performance also comes at a time when the Tata Group and Starbucks are revamping their India strategy by pivoting the JV, which runs Starbucks cafes, toward cost-effective stores and more locally-tuned pricing and menu options.

The strategic reset comes amid a broader discretionary slowdown and competitive out-of-home retail market in India, experts said, compelling global brands such as Starbucks to slow down aggressive store rollouts and focus on unit economics instead.

In FY26, Tata Starbucks saw net loss reduce by nearly 27% to Rs 98.95 crore from Rs 135.7 crore (net loss) reported in FY25. Revenue rose 7% year-on-year in FY26 to Rs 1,367 crore, aided by both store expansion and sales growth.
“Growth was primarily driven by store expansion, with the company opening 23 net new stores during the year,” the company said.

Besides store addition, the growth was supported by innovation in beverages and food programme, seasonal collaborations and enhanced gifting portfolio, it added. Tata Starbucks’ same-store sales growth (SSG) was positive for the year, said Tata Consumer. SSG evaluates the percentage change in total sales for stores that have been operating for a year or more.

A positive SSG, say analysts, indicates that established locations (open for at least a year) are generating more revenue than in previous periods, driven by factors like increased foot traffic and higher average order values. In FY26, the JV crossed the milestone of 500 stores, operating from 80 cities, strengthening presence across metros while building momentum in Tier II and III cities, it said.

According to the company, the store additions were calibrated and phased, with a clear focus on improving profitability and operational efficiency. “Tata Starbucks is expanding with discipline, focusing on calibrated store growth, deeper city penetration and stronger format innovation,” it said.

The company’s strategy balances premium positioning with widening access, strengthening presence across metros while building momentum in Tier II and III cities, it said. The company also said that it remained committed to enhancing customer and partner experiences, and driving profitable growth through execution focus and productivity initiatives.