Archive · 23 Jul 2025
Tata Consumer Reports Coffee Price Drop, Despite Market Volatility
Tata Consumer Products, which sells coffee, says coffee prices are going down but could change.
Even though prices are lower, the company's coffee business is doing well with more sales.
Overall, the company made more money this past quarter than the same time last year.
They also sell tea, which has steady prices.
The company's Starbucks stores are doing well.
But because they bought some coffee at higher prices, their profits are a little lower for now.
They expect things to get better as the prices stabilize.
Tata Consumer Products (TCPL) reports declining coffee prices but warns of continued volatility.
Arabica and Robusta coffee prices have moderated, but remain volatile.
TCPL's India coffee business saw a 67% revenue increase on 33% volume growth.
Consolidated revenue for TCPL grew 10% year-on-year, with a 15% jump in quarterly net profit.
The company's Starbucks cafe chain reported positive same-store sales growth.
- Who
- Tata Consumer Products (TCPL), including its CEO Sunil D’Souza, and the Starbucks cafe chain.
- What
- Tata Consumer Products (TCPL) reported on coffee prices, company financial performance, and Starbucks sales.
- When
- The report covers the March quarter, with the investor presentation released on Wednesday.
- Where
- India, with operations also mentioned in North and South India.
- Why
- TCPL is reporting on coffee price declines, financial results, and business performance to inform investors and the public.
Company Perspective
Market Trends
Profitability Impact
Company Perspective
Falling coffee prices will impact profitability due to existing high-priced inventory. It may take another quarter to stabilize.
Market Trends
Falling coffee prices could create margin compression.
- TCPL Quarterly Net Profit
- ₹332 crore
- Revenue Growth (Year-on-Year)
- 10%
- India Coffee Business Revenue Growth
- 67%
- India Coffee Volume Growth
- 33%
- Starbucks Store Count
- 485
- Arabica Coffee Prices (Year-on-Year, March Quarter)
- 97% higher