Nokia’s India sales up 75% in Q1 with new Airtel, Vi deals, but tariff headwinds loom on profit

Nokia’s India growth soars 75% in Q1 with new Airtel, Vi deals, but tariff headwinds loom on profit

Nokia reported a 75% year-over-year increase in India net sales for Q1 2025, reaching €464 million (approximately Rs 4,501.72 crore), driven by new 4G and 5G deployment deals with Bharti Airtel and Vodafone Idea (Vi).

The newly appointed President and CEO, Justin Hotard, cautioned that ongoing tariff uncertainties could pose short-term challenges, with an expected impact of €20–30 million (Rs 1,936–2,904 crore) on Q2 operating profit.

“Within APAC, net sales in India returned to growth, while the rest of APAC and Greater China declined. In EMEA, both Europe and the Middle East & Africa saw declines,” Nokia said in its Q1 earnings report released April 24.

India also led regional growth for Nokia’s Fixed Wireless Access (FWA) and cloud and network services businesses. “Fixed Networks saw strong growth, with a 9% increase in net sales (on a constant currency basis), largely due to significant expansion in India linked to FWA deployments,” the company noted.

Globally, Nokia’s Mobile Networks business unit posted a 3% year-on-year growth in net sales, reaching €1.73 billion, driven primarily by gains in the Americas and APAC, despite a decline in EMEA.

Hotard, who joined Nokia three weeks ago, acknowledged potential short-term disruptions linked to ongoing tariff challenges. “We will leverage the flexibility of our global manufacturing footprint to mitigate tariff impacts. Based on current assessments, we expect a €20–30 million hit to comparable operating profit in Q2,” Hotard said, adding that tariff-related assumptions have not been factored into the second half of 2025 due to limited visibility.

Looking ahead, Nokia remains focused on long-term growth. “We’re prioritizing capital allocation to drive operational efficiency and invest in high-potential segments. Despite the unforeseen charge in Mobile Networks, we maintain our full-year comparable operating profit guidance of €1.9–2.4 billion, and free cash flow between 50% and 80% of that range,” Hotard said.

In contrast, Swedish rival Ericsson reported a 28% year-on-year decline in Q1 revenue from India, falling to 3.85 billion Swedish crowns (Rs 3,360 crore). With key players like Jio and Airtel having completed their 5G rollouts, Ericsson attributed the decline to a normalisation in operator investment levels.