Global tech giant Microsoft’s India business reported 38.66 per cent growth in net profit in INR on year-on-year basis for the financial year 2025, driven by the uptick in cloud consumption and increased adoption of artificial intelligence (AI) offerings.
Profit for the period stood at Rs 1,245.2 crore crossing Rs 1,000-crore mark for the first time, against Rs 898 crore in FY24. Revenue for FY25 stood at Rs. 29,303 crores ($3.3 billion), a 28 per cent jump, from Rs 22,891.58 crore in FY24, according to the company’s filings sourced from Tofler.
The company’s total expenses for the fiscal were reported as Rs 27,624 crore.
Microsoft, which incorporated in India in 1988, offers product and services.
Microsoft’s products include operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; video games.
Service and other revenue includes cloud-based solutions that provide customers with software, services, platforms, and content such as Microsoft Office 365, Microsoft Azure, Microsoft Dynamics 365, and Xbox Live; solution support; and consulting services, the company said.
Satya Nadella’s upcoming visit
These numbers come ahead of Microsoft chief executive Satya Nadella’s expected visit to India in December, as per media reports. This will be his second visit to the South Asian country this year to meet the top government officials.
Nadella will address two AI-related conferences in Bengaluru and Mumbai during his visit, which also includes meetings in New Delhi, reports said.
In a recent interview with Moneycontrol, Jay Parikh, Executive Vice President, CoreAI, Microsoft, said that India's developer community is expanding rapidly and remains a key area of investment for Microsoft, presenting 'huge potential' and an 'exciting space' to learn from.
Push for sovereign AI
In bid to gain market share and customer confidence especially among governments, Microsoft recently announced that it will be rolling out in-country data processing for Microsoft 365 Copilot interactions across 15 countries, starting with India, Japan, Australia and the UK by the of 2025. This caters to governments and highly regulated industries’ demand for sovereign data and AI controls.
In 2026, the technology giant will be expanding this feature to customers in eleven more countries including Canada, Germany, Italy, Malaysia, Poland, South Africa, Spain, Sweden, Switzerland, the United Arab Emirates, and the United States.
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