Microsoft India earnings surge on robust cloud, support services demand

Microsoft Corporation (India) Private Limited, the Indian subsidiary of the Satya Nadella-led tech giant, saw its profit grow by over a third, primarily driven by strong revenue growth across its software products and services business.

The company reported a net profit of Rs 1,245.2 crore for the fiscal year 2024-25—up 38.6% from Rs 898 crore earned in the previous year, as stated in its financial filing with the Registrar of Companies (RoC).

The tech firm recorded operating revenue of around Rs 28,754.8 crore in FY25, an increase of 27.5% year-on-year (YoY). Its total income, including interest income on bank deposits, rose 28% to Rs 29,302.6 crore in the fiscal year ended March 2025.

In India, the company is in the business of manufacturing, replicating, marketing and selling Microsoft retail software products and services.

Microsoft India generated Rs 4,225.5 crore from its products, Rs 21,186.1 crore from its services, and Rs 3,343.2 crore from support services, including marketing support and data centre infrastructure support.

However, the company is required to pay royalties for receiving non-exclusive rights to manufacture, replicate, license, distribute, and sell Microsoft retail software products, as well as for search and online advertising in India.

The firm paid royalties of Rs 20,294.1 crore in FY25, up 29% YoY, for Microsoft retail software products and services. This increase was driven by higher sales and increased cloud services demand.

Globally, big tech companies, including Microsoft, Google, Meta, and Amazon, have carried out layoffs over the past year as part of their restructuring efforts to manage costs.

However, for Microsoft’s India subsidiary, the employee benefit expense for FY25 was Rs 1,567.9 crore, a 14.6% YoY increase, driven by growth in salary, ESOP/ESPP cost, and staff welfare due to expanded operations and higher headcount.

Microsoft India’s net worth increased 6.2% YoY to Rs 21,265 crore in FY25. The company didn’t raise any additional capital in the fiscal. The company’s authorised share capital and paid-up capital remained unchanged.

Last month, Microsoft reported strong quarterly gains for its first quarter, with revenue rising 18% YoY and net profit surging 12% YoY, driven by robust cloud adoption and AI workloads.

The tech giant witnessed a “very strong start” to its financial year 2026, Chairman and CEO Nadella noted, highlighting that the company is “building a planet-scale cloud and AI factory”.