Microsoft India has reported a robust financial performance for fiscal year 2025, with a significant surge in both profit and revenue. The IT giant's profit after tax jumped by 38.66% to ₹1,245.18 crore for the financial year that ended on March 31, 2025. This is a notable increase from the ₹898 crore profit recorded in the previous financial year. The company's revenue from operations also experienced substantial growth, rising by 27.44% to ₹28,754.77 crore, compared to ₹22,561.91 crore in FY24.
The total revenue for Microsoft India surged by 28% to ₹29,303 crore. This impressive growth is attributed to increased cloud consumption and the growing adoption of AI offerings across the country. Microsoft is planning to begin processing Copilot data locally in India by the end of 2025, aligning with the increasing demand for data privacy and control. This move is part of a broader strategy to expand local data processing to 15 countries.
While revenue and profit witnessed strong growth, the company's expenses also saw a considerable increase. Royalty expenses, a major component, rose by approximately 29% year-over-year, reaching ₹20,294.13 crore in FY25 from ₹15,738.1 crore in the preceding fiscal year. Employee costs also increased, rising by 14.5% to ₹1567.9 crore during the reviewed period, compared to ₹1,368.6 crore in FY24.
Microsoft India's strong financial results align with the global performance of Microsoft, which has seen significant growth in its cloud and AI platforms. For the fourth quarter of FY25, Microsoft's revenue increased by 18% year-over-year to $76.4 billion, and net profit surged by 24% to $27.2 billion. The company's Azure cloud platform has been a key driver of growth, surpassing $75 billion in annual revenue with a 39% year-over-year increase. Microsoft is also increasing its capital expenditure to support its expanding AI and cloud infrastructure.
CEO Satya Nadella has emphasized that Microsoft is undergoing a "generational tech shift with AI," and the company is focused on delivering AI solutions across its cloud services. Microsoft's performance has been well-received by investors, with shares rising after the earnings release. Microsoft is expected to be a leader in capturing GenAI spending over the next three years.
These results come ahead of Satya Nadella's visit to India in December, where he is expected to meet with officials and address AI-related conferences.
