Meta platforms India profit soars 28.3% to Rs 647.5 crore in FY25 as ad revenue jumps 29%
Meta Platforms India posted a strong FY25 performance, with net profit rising 28.3% to Rs 647.5 crore as digital advertising demand surged. Revenue from operations grew 25% to Rs 3,792.9 crore, while gross ad revenue jumped 29% to Rs 29,392 crore, highlighting India's growing online economy.
New Delhi: The India unit of Meta Platforms has recorded a healthy combination of figures in FY25, with net profits increasing by 28.3 per cent annually to Rs 647.5 crore, mainly due to a growth in digital advertising. Operation revenue increased by 25 per cent to reach Rs 3,792.9 crore due to the increased online activities and increased advertiser demand in the various platforms of the company.
The total income during the year was Rs 3,833.62 crore, 25% higher than in FY24. The growth in gross advertising revenue was even higher, increasing by 29 per cent to Rs 29,392 crore, showing how the Indian economy is becoming increasingly digital and how Meta is penetrating both consumers and businesses.
Advertising remains Meta India’s biggest engine
Meta India makes its major revenues through selling advertisements on Facebook, Instagram, Messenger, and partner websites and apps. Depending on the structure of campaigns, the company records the revenue of impression-based adverts and action-based adverts.
Net advertising revenue has increased by 19.4 per cent in FY25 to reach Rs 2,170.6 crore, and profit of the ad segment has increased 42.3 per cent to Rs 840.9 crore. Meta India now pays royalties and infrastructure fees to commercialise advertising IP locally since it moved to an operating licence model and commercialised its advertising IP in 2022 and had its US parent. Royalty payments grew by 30 to Rs 23,247.7 crore in the year, whereas infrastructure costs rose by 32.2 to Rs 3,861.2 crore.
Services revenue grows; the design unit stays in the red
In addition to advertising, Meta India also offers IT-based business process outsourcing and design support services to its operations in the US. Earnings on IT-enabled services went up 21.4 per cent to Rs 1,377.9 crore, and segment profit went up to Rs 173.8 crore.
Design support revenue has been up by almost three times to Rs 244.4 crore. Nevertheless, this segment remained to be recording losses as it expanded to Rs 60.2 crore in FY25, compared to Rs 20.6 crore in the previous year.
Rising staff costs push overall expenses higher
Total cost rose by 22.6 to Rs 2,881 crore, with employee costs surging sharply. The staff costs increased 36.2 per cent to Rs 648.6 crore with the rise in salaries and a high rate of growth in share-based compensation as Meta kept investing in talent and operations in India.
Why India matters to Meta’s global strategy
India is the most used market, with more than a billion monthly individuals in the Meta family of applications, which includes WhatsApp. The nation is also taking centre stage in the move of the firm towards artificial intelligence and business messaging.
Last year, Meta hired a new Managing Director and head of India operations, Arun Srinivas, and Sandhya Devanathan became in charge of both India and Southeast Asia. Messaging in the business, in particular via WhatsApp, is becoming a strategic emphasis as Meta strives to decrease its reliance on conventional online advertisements. The company just reported that paid messaging on WhatsApp has already reached over a 2 billion annual run rate, which highlights the increasing Indian influence on the next stage of growth at Meta.