Google India reported significant shifts in its financial performance for the fiscal year ending March 2025 (FY25), marked by an 11.3 percent rise in gross advertising revenue to Rs 34,742 crore, compared to Rs 31,221 crore in FY24.
However, net advertising revenue dipped by 2 percent to Rs 2,694.4 crore due to substantially higher payouts to Google Asia Pacific for the purchase of advertisement space, which rose 12.6 percent to Rs 32,047.6 crore. The company also saw strong growth in its enterprise products business, with gross sales increasing 32.4 percent to Rs 2,054.9 crore. Payments to Google Asia Pacific for services related to enterprise products rose 33.8 percent to Rs 1,868.4 crore, leading to net sales of Rs 186.5 crore, up 20 percent year-on-year.
Rising ITES Earnings Offset Decline in Ad Sales for Google India in FY25
Google India’s revenue model primarily revolves around reselling advertising space for Google Ads and other advertising products within the Indian market. It also earns revenue by reselling cloud services, productivity tools such as Gmail and Google Docs, and by providing IT-enabled services (ITES) to its group companies. Revenue from ITES climbed to Rs 2,459.2 crore, compared to Rs 2,389.6 crore in the previous fiscal. Profit from the ITES segment stood at Rs 330 crore, slightly higher than Rs 319.4 crore last year. Despite these gains, revenue from operations saw an unusual 3 percent decline, falling to Rs 5,340.1 crore from Rs 5,518.1 crore, mainly due to reduced sales from advertising space and enterprise products. Net sales from these segments dropped 3 percent to Rs 2,880.9 crore, while profit fell to Rs 920 crore from Rs 1,049 crore. Nevertheless, total revenues grew 3 percent year-on-year to Rs 6,115.9 crore, and net profit remained nearly flat at Rs 1,436.90 crore.
On the expense front, Google India’s employee benefits rose 7.9 percent to Rs 2,145.9 crore, driven by a 13.4 percent rise in salaries and wages, while share-based payments declined 5.5 percent. Total expenses dropped 1.2 percent to Rs 4,136.3 crore. With over a billion users, India remains Google’s largest user base globally and a vital region for future growth, supported by more than 10,000 employees across the country.
Summary:
Google India’s FY25 performance showed mixed trends, with gross ad revenue rising but net ad revenue declining due to higher payouts. Enterprise and ITES segments grew, yet overall operational revenue fell 3 percent. Total revenue rose slightly, profits stayed flat, and employee costs increased as India remained Google’s key growth market.
