Photo: Collected
Costa Coffee India's master franchisee Devyani International Limited (DIL) has declared the coffee brand a "core pillar" of its growth strategy, despite cutting its store count for the first time in more than five years.
According to DIL's annual report for 2025-2026, Costa's Indian network has reduced by 22 outlets in the financial year 2026. Despite this, revenue grew by seven per cent year-on-year. Total revenue in the financial year 2026 was Rs 212.5 crore (US$ 22.2 million), compared to Rs 198.5 crore (US$ 20.74 million) in the financial year 2025.
DIL had 198 cafes in operation at the end of the financial year 2026, down from 220 outlets at the end of the financial year 2025. The company said Costa is targeting unconventional, high-traffic locations for new expansion opportunities and the brand aims to open 40 to 50 outlets annually.
“Costa Coffee is expanding its geographic footprint in the country, identifying India as a high-potential market for sustainable growth,” the report said.
“The brand’s strategy is largely focused on expanding its presence in travel hubs, airports, railway stations and corporate campuses, moving beyond the traditional high-street model of metro cities.”
Costa is also eyeing the tastes of Gen G and millennials and sees the shift from tea to specialty coffee in the region as a major opportunity. To this end, it has introduced several permanent and limited-edition menu items, such as iced matcha latte and goji berry matcha.
“Coffee culture in India has emerged as a niche opportunity,” the report added.
Costa Coffee’s brand proposition is focused on attracting this niche customer segment, driven by the massive shift from tea to specialty coffee among Gen Z and millennials.
“To deepen our connection with these segments, we have developed our cafes into creative hubs, where local special events are hosted to engage younger customers.”
DIL said it has taken a “more disciplined and selective approach” to expansion across its portfolio in fiscal 2026.
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Source: Online/GFMM
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