Costa Coffee, the British coffee chain owned by Coca-Cola, recorded a 30.76% increase in revenue in India for FY25, totaling ₹198.5 crore, according to Devyani International Ltd (DIL), its India franchise operator based in New Delhi, India. The profit rose by 28.4% to ₹149.7 crore, driven by aggressive store expansion across the country. However, a marginal decline in gross margin was observed due to inflation in coffee and other input costs.
Costa Coffee, a globally renowned British coffee brand owned by Coca-Cola, reported a significant 30.76% year-on-year rise in its India operations revenue, reaching ₹198.5 crore for the financial year ending March 31, 2025. The brand is operated in India by New Delhi-based Devyani International Ltd (DIL), a leading Quick Service Restaurant (QSR) operator.
The profit for FY25 also saw a jump of 28.4%, climbing to ₹149.7 crore from ₹116.6 crore in FY24. The growth was largely attributed to an aggressive expansion strategy, with Costa Coffee increasing its store count from 179 to 220 across India during the year.
However, the report also highlighted a slight dip in gross margin—from 76.8% in FY24 to 75.4%—driven by inflation in coffee beans and other input materials. Additionally, the brand’s average daily sales (ADS) per store dropped from ₹33,000 to ₹27,000, reducing the same-store sales growth from 8.7% to 4.1%.
DIL emphasized that Costa Coffee is now focusing on high-footfall areas such as airports and multiplexes to further its reach, capitalizing on the growing demand for premium coffee among India’s youth, especially Gen Z.
Earlier this April, Costa Coffee’s Global CEO Philippe Schaillee stated that India is poised to become one of the brand’s top five global markets. India currently ranks among the top ten.
The Indian coffee retail space is witnessing robust growth at 10–12% annually—twice the pace of global markets. Costa Coffee competes with major international and domestic players including Starbucks, Tim Hortons, McCafe, Dunkin’, Blue Tokai, and Third Wave Coffee.
India’s changing beverage preferences, particularly among young urban consumers, are reshaping the traditionally tea-dominated culture, and Costa Coffee is positioning itself at the center of this transformation.
