Krutrim announces strategic pivot to AI cloud services
The company reported revenue of approximately Rs 300 crore in FY26, a threefold increase over FY25, and its first annual net profit.
AI firm Krutrim has repositioned the company as a focused domestic AI Cloud Services provider, while announcing its financial figures for FY26.
The company reported revenues of approximately Rs 300 crore in FY26, a threefold increase over FY25, and its first annual net profit, with a profit after tax margin of over 10%.
The repositioning follows a business realignment undertaken in late 2025, which involved a deliberate reallocation of capital and talent, including a pause on chip design initiatives to concentrate the company's resources on building and scaling its core AI cloud services stack.
The result is a full-stack cloud service built entirely in-house, deployed at large scale without external dependencies. Krutrim’s platform reflects a high degree of vertical integration across the cloud stack, enabling optimised performance, cost efficiency, and greater control for AI and enterprise workloads.
Krutrim is among the limited players in India operating a full-stack, domestically built AI cloud services at production scale, supporting complex, real-time workloads across sectors such as mobility, manufacturing, and customer operations.
The pivot has yielded a structurally different business. Krutrim is now financially self-sustaining, with no immediate requirement for external funding, including from its founder.
"The company has reached an important milestone of being profitable, self-funded, and gaining market traction. Our AI cloud is built for Indian enterprises, by Indian engineers. The external client momentum we are seeing validates the depth of our platform," a Krutrim spokesperson said.
The repositioning has begun generating external market traction.
Krutrim said it is seeing increasing adoption with over 25 large enterprise customers, including leading telecom service providers, top financial institutions, consumer internet platforms, AI and deep-tech companies, healthcare, logistics platforms, and digital-first enterprises, a cross-sector roster that reflects the platform's applicability beyond the Ola Group.
Krutrim’s GPU compute capacity is witnessing strong external demand, with a majority of capacity already committed to external enterprise workloads.
With its infrastructure built domestically and a self-funding operating model now in place, Krutrim is positioned to deepen its enterprise cloud footprint amid growing demand for sovereign, India-built AI cloud services.
In June last year, The Economic Times reported that founders and developers it had spoken to considered Krutrim’s models and cloud offerings less mature than those of larger hyperscalers such as AWS and Azure.
The company has also been through repeated restructuring with media reports of exits of senior executives in June 2025, more than 100 job cuts in July, and a third round of layoffs in September last year, which hit about 50 people in the linguistics team, including regional language specialists.
In January 2024, Krutrim raised $50 million at a valuation of $1 billion, making it India’s first AI unicorn. Since then, the company has pushed deeper into cloud, models, and chip work. Efforts include the acquisition of BharatSah’AI’yak in 2025.
With inputs from PTI.