Google India’s ad engine grows in FY25, but net advertising revenue slips

Google India recorded steady topline growth in the financial year ended March 2025, led by higher gross advertising sales and expanding enterprise products, even as net advertising revenue declined due to rising payouts to group entities.

According to filings with the Registrar of Companies, shared by business intelligence platform Tofler, Google India’s gross advertising revenue increased 11.3% year-on-year to ₹34,742 crore in FY25, up from ₹31,221 crore in the previous year. However, net advertising revenue fell 2% to ₹2,694.4 crore, reflecting higher payments made for purchasing advertising inventory.

Payments to Google Asia Pacific for advertising space rose 12.6% to ₹32,047.6 crore during the year, compared with ₹28,477.8 crore in FY24, offsetting much of the growth in gross ad sales.

Enterprise products emerged as a faster-growing segment. Gross sales from enterprise offerings such as cloud services and productivity tools climbed 32.4% to ₹2,054.9 crore. At the same time, payments for related services to Google Asia Pacific increased 33.8% year-on-year to ₹1,868.4 crore, resulting in net enterprise revenue of ₹186.5 crore, up 20% from the previous year.

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Google India also derives revenue from providing IT-enabled services to group companies. Income from this segment rose to ₹2,459.2 crore in FY25 from ₹2,389.6 crore a year earlier, with profits increasing to ₹330 crore.

Despite gains in select segments, revenue from operations declined 3% year-on-year to ₹5,340.1 crore. This was driven by lower net sales from advertising space and enterprise products, which fell to ₹2,880.9 crore from ₹3,128.5 crore. Segment profit also declined to ₹920 crore from ₹1,049 crore in FY24.

Total revenue for the year increased 3% to ₹6,115.9 crore, while net profit remained largely flat at ₹1,436.9 crore, compared with ₹1,424.9 crore a year earlier.

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On the cost side, employee-related expenses rose 7.9% to ₹2,145.9 crore, reflecting higher salary and wage payouts, even as share-based compensation costs declined. Overall expenses fell marginally by 1.2% to ₹4,136.3 crore, helping contain pressure on profitability.

India remains Google’s largest market globally by user base, with over a billion users across its platforms. The country also continues to be a strategic focus for the company’s long-term growth, particularly in areas such as artificial intelligence and cloud services. Google employs more than 10,000 people in India, making it one of its largest workforces outside the United States.