Costa Coffee’s retail footprint in India contracted for the first time in more than five years, with the British coffee chain ending FY26 with 198 stores, down from 220 outlets a year earlier. Despite the reduction in its café network, the brand reported a 7% year-on-year increase in revenue.
According to the latest annual report of Devyani International Limited (DIL), Costa Coffee’s exclusive franchise partner in India, the chain recorded a net reduction of 22 stores during FY26. The decline comes after several years of consistent expansion in India’s organised café market.
Costa Coffee’s revenue from operations rose to Rs 212.5 crore in FY26 from Rs 198.5 crore in FY25. The increase came despite a smaller store network, contrasting with FY25 when the brand posted 30.76% revenue growth alongside rapid outlet expansion.
The coffee chain has witnessed significant growth over the past five years, expanding from 44 stores in FY21 to 55 in FY22 before more than doubling its network to 112 outlets in FY23. It further increased its footprint to 179 stores in FY24 and 220 in FY25 before declining to 198 stores in FY26.
While Devyani International did not disclose the reasons behind the reduction in Costa Coffee outlets, the company said it adopted “a more disciplined and selective approach to expansion” across its brand portfolio during the financial year.
Costa Coffee continues to be identified as one of Devyani International’s key growth drivers alongside KFC and Pizza Hut. The brand remains focused on India’s premium out-of-home coffee segment, with Gen Z and millennial consumers continuing to be central to its growth strategy.
The company has also been refreshing its menu to align with evolving consumer preferences in India’s organised café market. The reduction in stores during FY26 suggests a shift towards a more measured expansion strategy after adding 176 outlets between FY21 and FY25.
India also remains a key market in Costa Coffee’s long-term global strategy. In April 2025, Costa Coffee Global CEO Philippe Schaillee identified India as one of the company’s top 20 markets globally and said it is expected to become one of Costa Coffee’s top five markets in the coming years.
