Costa Coffee Brews a Strong Year in India: Revenue Up 49% to ₹152 Crore in FY24
British coffee chain Costa Coffee has reported a 49% surge in revenue from operations in India, reaching ₹151.8 crore in FY24, according to the annual report by Devyani International Ltd (DIL) — the brand’s master franchisee in the country.
DIL, part of the RJ Corp group and also the operator of KFC, Pizza Hut, and Vaango, attributed the growth to rapid store expansion and increasing coffee consumption among India’s young, urban demographic.
Strong Growth and Expansion
Costa Coffee’s gross profit rose 45% year-on-year to ₹116.6 crore, up from ₹80.4 crore in FY23. The brand added 67 new stores during the financial year — its biggest expansion to date — taking the total count to 179 outlets across India.
“In FY24, revenue from operations stood at ₹151.8 crore as against ₹101.8 crore in the previous year, registering a growth of 49% driven by store expansion,” DIL said.
Over the past two years, Costa Coffee has more than tripled its store footprint, growing from 55 stores to 179.
Per-Store Sales Dip, but Stabilization Expected
Despite the topline growth, average daily sales per store declined to ₹32,710 in FY24 from ₹35,085 a year earlier. DIL noted that this was due to the high number of new stores still in the early ramp-up phase, adding that performance is expected to improve as newer locations mature.
“As the new stores stabilise and reach their maturity level, this performance is expected to improve,” the company stated.
Strategic Focus: Airports and High-Footfall Spots
DIL is placing a strong emphasis on airport outlets and high-traffic locations to position Costa Coffee as a premium experience brand.
“With domestic travel booming, airports are buzzing with activity, making them prime spots for our premium coffee,” DIL said. “Our presence aligns perfectly with the demand for quality experiences travellers seek.”
The company plans to continue this momentum by adding 60–70 new stores annually going forward.
Competing in India’s Booming Coffee Market
Costa Coffee is stepping up its game in India’s fast-growing coffee market, competing with Tata Starbucks (a 50:50 joint venture between Tata Consumer Products and Starbucks Corporation) and Barista.
“Our approach is about opening new channels and experimenting with different venues,” DIL said. “The goal is to identify what works, understand consumer demand, and scale the successful strategies.”
A Confident Outlook
As India’s café culture continues to flourish, DIL says it remains focused on brand-building, experimentation, and sustainable growth.
“We are confident of crafting a stronger tomorrow as we continue to pour our efforts into building the brand and seizing business opportunities,” the company added.
