SoftBank swings back to black with $3.5 billion Q4 profit, but Swiggy, Ola markdowns sour India bets

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Japan's SoftBank Group posted a net profit of $3.5 billion (¥546 billion) in the January–March quarter, bouncing back after a loss in the previous quarter. The profit was largely driven by gains from investments in global tech giants like Alibaba, T-Mobile, and Deutsche Telekom.

For the full fiscal year ended March 2025 (FY25), the company reported a consolidated net profit of around $7.4 billion (¥1.15 trillion), its first in last four years, reversing a loss of $1.47 billion (¥227.6 billion) in the previous year.

Despite an overall strong quarter, some of its India bets continued to weigh on the Japanese investor's performance.

In the March quarter alone, SoftBank said the value of public companies held by Vision Fund 2—such as Ola and Swiggy (valued based on comparable listed peers)—fell 21.7%, contributing to a 2.7% decline in the fund’s portfolio value over the same period.

"The fair value of investments held at the fourth quarter-end decreased by 2.7% from the previous quarterend. Down 21.7% QoQ for public portfolio companies, mainly due to share price declines in Swiggy and Ola Electric Mobility," the consolidated financials read.

The Vision Funds segment posted an investment gain of $2.5 billion (¥387.6 billion). This was led by Vision Fund 1, which reported a $6.1 billion (¥940.5 billion) gain—thanks to rising valuations in companies like ByteDance and Coupang. SoftBank said the fair value of Vision Fund 1’s investments rose 4.1% in the March quarter. Public portfolio companies saw a 0.8% increase, driven by gains in DiDi and Auto1, though this was partially offset by declines in FirstCry and other holdings.

In contrast, Vision Fund 2 recorded a loss of $3.4 billion (¥526.5 billion) for FY25, mainly due to markdowns in Swiggy, Ola, and other portfolio companies. In the quarter alone, the Vision Fund 2 booked an investment loss of $708 million.

'...Hopefully we will be able to see some good recovery from there," Softbank director Yoshimitsu Goto said during the company's earnings presentation on Tuesday.

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Swiggy, whose stock has declined 42% so far in 2025, reported a net loss of Rs 1,081 crore, compared to a loss of Rs 555 crore during the same quarter last year. Its loss on the Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) front also widened to Rs 961 crore, from Rs 485 crore last year, as cash burns on account of quick commerce investment surged.

Ola Electric, meanwhile, posted a net loss of Rs 564 crore in the October–December quarter, hit by discount-led promotions to counter growing competition in the EV space.

Both companies are currently trading below their IPO issue prices, putting SoftBank’s potential exit timelines under further strain.

While SoftBank did not sell any shares in Swiggy during its IPO in November, it offloaded around $25 million worth of shares in Ola Electric in August and sold a $110 million stake in FirstCry during its IPO the same month.