British coffee chain Costa Coffee, operated in India by Devyani International Ltd (DIL), recorded a 30.76% rise in revenue from operations, reaching Rs. 198.5 crore in FY25. Net profit also grew 28.4% year-on-year to Rs. 149.7 crore, according to DIL’s latest annual report.
The growth was driven primarily by network expansion, with the number of outlets increasing from 179 in FY24 to 220 in FY25.
However, key operating metrics saw pressure. Gross margins declined slightly from 76.8% to 75.4% due to rising input costs, including coffee beans. Brand contribution margin dipped to 16.1% from 17%, while average daily sales (ADS) per store dropped from Rs. 33,000 to Rs. 27,000. This led to a slowdown in same-store sales growth (SSSG) from 8.7% to 4.1%.
Despite these challenges, DIL emphasized its commitment to aggressive expansion, targeting 40–50 new stores annually. Costa Coffee is currently among the brand’s top 10 global markets and is aiming to enter the top five within five years.
The company highlighted the rising demand for premium coffee in India, especially among millennials and Gen Z, as a key growth driver. The Indian café market is growing at 10–12% annually—twice the global average—with Costa focusing on high-traffic areas like airports and multiplexes to strengthen its presence.
Costa Coffee competes in India with other global players such as Starbucks, Tim Hortons, McCafé, and Dunkin’.
