Spotify India turns profitable in FY25 as subscriptions surge and marketing costs shrink

Spotify India LLP swung to profitability in the financial year ended March 31, 2025, marking a significant turnaround after posting losses in the previous fiscal. The company’s improved performance was driven by robust growth in subscription and advertising revenues, along with a sharp reduction in marketing expenditure.

Revenue from operations rose 59.8 percent year-on-year to Rs 513.77 crore in FY25, compared with Rs 321.39 crore in FY24. Total income for the year climbed even faster, increasing 62.9 percent to Rs 527.34 crore from Rs 323.77 crore a year earlier.

Subscription income remained the company’s largest revenue contributor, surging 88.8 percent to Rs 316.83 crore from Rs 167.80 crore in FY24. The strong growth reflects improved monetisation of paid users on the platform. Advertising revenue also recorded healthy momentum, rising 38 percent year-on-year to Rs 186.73 crore, indicating stronger advertiser demand.

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On the cost side, employee benefit expenses increased 17.7 percent to Rs 100.36 crore, up from Rs 85.28 crore in the previous fiscal, reflecting continued investments in talent and operations. However, overall cost discipline helped offset these increases. Total other expenses declined 15.1 percent year-on-year to Rs 340.71 crore.

A major contributor to margin expansion was a steep cut in advertising and marketing expenditure, which fell 37.1 percent to Rs 243.23 crore in FY25 from Rs 386.81 crore in FY24. The reduction points to a more measured approach toward customer acquisition and brand spending as the platform scales.

As a result of higher revenues and tighter cost controls, Spotify India reported a profit before tax of Rs 76.76 crore in FY25, compared with a loss of Rs 143.36 crore in the previous year. After tax, the company posted a net profit of Rs 74.62 crore, reversing the net loss of Rs 143.36 crore recorded in FY24.

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