Microsoft India’s Profit Jumps 39% To INR 1,245 Cr In FY25

Microsoft Corporation (India) (Microsoft India) saw its net profit rise 39% to INR 1,245.2 Cr in the financial year 2024-25 (FY25) from INR 898 Cr in FY24. 

Revenue from operations grew 27% to INR 28,754.8 Cr during the year under review from INR 22,561.9 Cr in the previous year. Total income stood at INR 29,302.6 Cr, including other income of INR 547.9 Cr.

Microsoft India earned a majority of its revenue from its service business, which raked in INR 21,186.1 Cr, or over 73% of the operating revenue, in FY25. Meanwhile, product revenue, including software licences, brought in INR 4,225.5 Cr, while support services added another INR 3,343.2 Cr.

The company’s total expenses rose 27.5% to INR 27,624.1 Cr from INR 21,668.7 Cr in FY24. 

Notably, Microsoft undertook a governance overhaul earlier this year following the suspension of cloud services to Nayara Energy in July in India. The abrupt suspension, triggered by Microsoft’s interpretation of new EU sanctions, cut off Nayara’s access to email servers, Teams and other cloud tools, prompting the company to approach the Delhi High Court.  

Services were restored before the matter was heard, but the episode intensified concerns around India Inc’s dependence on foreign cloud providers.

In the months after the incident, Microsoft introduced a series of governance reforms aimed at preventing similar disruptions. The company said it would now inform customers of any foreign government order mandating service suspension, challenge such orders through legal avenues, and seek injunctive relief where needed to maintain service continuity. 

It also updated its risk-based compliance framework with new validation checks, escalation layers and cross-functional oversight.

Further, Microsoft set up a new Customer Council, chaired by Microsoft India president Puneet Chandok, to deepen engagement with public sector and critical-infrastructure clients on issues such as digital sovereignty, cybersecurity and regulatory expectations.

It said it is also scaling its sovereign-cloud offerings and aligning privacy protocols with India’s regulatory standards.

Breaking Down Microsoft India’s Expenses

Here’re the key expense heads for Microsoft India:

Royalty Expenses: The company pays royalty to its US-based parent for the use of its intellectual property and brand. It paid INR 20,294.1 Cr as royalty during the fiscal year under review, 29% higher than INR 15,738.1 Cr in FY24. 

Employee Benefit Expenses: Microsoft’s employee costs rose 14.6% to INR 1,567.9 Cr from INR 1,368.6 Cr in the year-ago period. 

Advertising Expenses: The company’s advertising costs for the period under review stood at INR 320.8 Cr as against INR 319.3 Cr in FY24.