Google India reported a nearly flat net profit of ₹1,437 crore for the financial year ending March 31, 2025, staying close to the ₹1,425 crore recorded in FY24. The company’s revenue from core operations fell 3.2% to ₹5,340 crore, primarily due to softer advertising income, which kept overall profit growth in check.
Despite this, total revenue rose slightly to ₹6,116 crore, helped by “other income” of ₹776 crore. However, the net profit margin slipped to 23.5% from 24.1%, reflecting the impact of lower operational earnings combined with rising expenses.
On the cost side, total expenditure reached ₹4,136 crore. Employee benefits increased by 7.8% to ₹2,146 crore, while tax expenses rose sharply by 22.6% to ₹543 crore, both putting pressure on profitability.
A spokesperson for Google India noted that FY25 results are not directly comparable to FY24, as the previous year included earnings from the company’s IT division, which was spun off into Google IT Services, and adjustments from an earlier Bilateral Advance Pricing Agreement (BAPA) with the tax authorities. These factors had boosted FY24 numbers.
The slight revenue decline comes amid shifts in digital advertising trends and market conditions, prompting the company to manage costs carefully. Analysts say the numbers indicate that while Google India’s bottom line remains stable, operational growth faces headwinds, and margins are under pressure from rising expenses.
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