Microsoft India revenue jumps 28% to cross USD 3.4 billion in FY25

Microsoft Corporation (India) reported strong financial growth for the fiscal year ending 31 March 2025 (FY25). Regulatory filings shared on Monday, 17 November 2025, show the company’s total revenue surged 28 percent to reach Rs 29,303 crore (approximately USD 3.4 billion).

This marks a significant increase from the Rs 22,892 crore reported in the preceding fiscal year, FY24. The company’s net profit also saw a sharp increase, rising by over 38 percent to Rs 1,245.18 crore for the year.

Cloud and AI power the results

The primary drivers behind this financial acceleration were rising corporate spending on cloud consumption and the fast adoption of Artificial Intelligence (AI) offerings across India. The country’s digital focus, backed by substantial investments from Microsoft, is now yielding tangible returns.

Microsoft's global strategy centres on its Intelligent Cloud platform, anchored by Azure. In India, this strategy translates into increased adoption of enterprise cloud services and AI tools like Copilot. Microsoft is not only selling software but also powering the digital backbone for local start-ups, large enterprises, and government agencies.

The company’s major expense component, cost royalty, also increased by roughly 29 percent to Rs 20,294.13 crore in FY25. This cost reflects payments made to the parent company for licenses and intellectual property, directly correlating with the higher sales volumes of its core products and services like Azure, Microsoft 365, and Dynamics 365.

Strategic investment in infrastructure

The recent financial performance supports the company’s continuing commitment to the Indian market. In January 2025, CEO Satya Nadella announced a major investment of USD 3 billion over two years to expand Microsoft's cloud and AI infrastructure in India.

This investment aims to develop a scalable AI computing ecosystem. It directly supports the country's rapidly expanding AI start-up scene and research community. Microsoft already operates three datacenter regions in the market, with a fourth scheduled to go live in 2026. This expansion demonstrates the company's focus on meeting the rising demand for local data processing, which satisfies privacy and compliance requirements for clients. The company plans to begin processing Copilot data locally in India by the end of 2025.

Beyond infrastructure, Microsoft also stated a plan to train 10 million people in India on AI skills by 2030, reinforcing its effort to build the necessary local talent pool.

Context in the global market

The strong results from the Indian market mirror Microsoft’s overall global success driven by cloud and AI. Globally, Microsoft’s cloud revenue climbed 26 percent in its first quarter of fiscal year 2026, with Azure services growing 40 percent. The company’s financial success in India is therefore an important local indicator of the global pivot toward an AI-first, cloud-centric business model.