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India's Tata Coffee reported a more-than-5% rise in its first-quarter profit on Wednesday as net sales in its tea plantation and instant coffee businesses improved.

The coffee processor's net profit attributable to shareholders rose to 474.8 million rupees ($5.8 million) in the quarter ended June 30 while revenue from operations rose nearly 6% to 7.01 billion rupees.

"Tea plantations' performance was robust in the quarter, driven by higher crop production and lower cost of production," said managing director Chacko P Thomas.

Several coffee processors, including Tata Coffee, said in recent months that demand from restaurants, cafes and offices bounced back as people ventured out more frequently.

Shares of Tata Coffee, which exports to over 40 countries, are up 1.2%.

The company, which also supplies to chain stores of a joint venture between Starbucks and parent Tata Consumer Products, said revenue from its value-added products business rose 3% from a year earlier.

The segment constitutes almost 82% of the company's total income and includes the production and sale of roasted, ground, and instant coffee products.

Last month, Reuters reported that Starbucks is revamping its strategy in India, changing prices and expanding into smaller cities amid fierce competition from domestic startups.

Tata Coffee's total expenses, however, rose more than 8%, making its earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin contract to 16.73% from 17.61% a year earlier.

The company said that lower bag volumes and higher input costs impacted the performance of its unit, Eight O'clock Coffee.