Zoho is still enormously profitable, but its profit has fallen slightly over last year.
The Chennai-based software giant reported a consolidated revenue of Rs 12,313 crore in FY25, up 17.8 percent year-on-year from Rs 10,456 crore in FY24. Net profit, however, dipped to Rs 3,191 crore from Rs 3,299 crore — a decline of about 3.3 percent. For context, Zoho’s revenue was just Rs 6,711 crore in FY22, making the last three years a period of near-doubling in scale.
The profit dip comes down to expenses growing faster than revenue. Total expenses rose 30.5 percent to Rs 9,216 crore in FY25 — outpacing the 17.8 percent revenue growth by a wide margin. Marketing, legal, and operational costs climbed to Rs 4,114 crore from Rs 3,169 crore, while depreciation and amortisation jumped to Rs 741 crore from Rs 514 crore, reflecting heavier infrastructure investment.
Profit before tax stood at Rs 4,327 crore, with a tax outgo of Rs 1,112 crore — up from Rs 819 crore in FY24.
One bright spot: cash. Zoho’s cash and cash equivalents nearly tripled to Rs 1,878 crore at the end of FY25, from Rs 710 crore a year earlier. Total income, including other income, rose to Rs 13,543 crore from Rs 11,193 crore; other income alone came in at Rs 1,231 crore, up from Rs 737 crore.
Zoho has long stood apart from the Indian startup ecosystem by being deeply profitable and entirely bootstrapped — no external capital, no IPO pressure, no quarterly earnings calls. Founder Sridhar Vembu has consistently prioritised long-term investment over short-term margin optimisation, and the FY25 numbers suggest that philosophy continues — with spending accelerating even as topline growth holds strong.
The slight profit decline is unlikely to alarm anyone at Zoho. A company doing Rs 3,191 crore in net profit, growing revenue at nearly 18 percent, and sitting on a rapidly expanding cash pile is, by any measure, in good health. The question for FY26 is whether the surge in expenses — particularly on infrastructure and operations — begins to generate commensurate returns in revenue growth.