Costa Coffee has reduced its physical presence in India to 198 outlets for the fiscal year ending March 2026, down from 220 a year earlier.
The contraction marks the first decline in the brand’s Indian store count in more than five years, according to annual filings reviewed by Hindu Businessline.
Despite the reduction in footprint, the company reported a 7% increase in revenue for the period.
Despite the reduction in footprint, the company reported a 7% increase in revenue for the period.
The divergence between store count and top-line growth suggests a strategic shift toward optimizing unit economics and focusing on higher-performing locations rather than pure volume expansion.
This move comes as India’s broader coffee sector continues to expand, with government data showing that exports of value-added coffee rose approximately 46% over the past three years to reach $686 million in the 2025-26 fiscal year.
The domestic market remains highly competitive, with both international chains and local players vying for share in a rapidly evolving consumer landscape.