Google India gross ad revenue rises 11.3% YoY, net ad revenue falls 2%: Report

Google India reported steady topline growth in the financial year ended March 2025, driven by higher gross advertising sales and growth in enterprise products, even as net advertising revenue declined due to higher payouts to group entities, as per a media report.

According to filings with the Registrar of Companies, shared by business intelligence platform Tofler, gross advertising revenue rose 11.3% year on year to Rs 34,742 crore in fiscal 2025, from Rs 31,221 crore a year earlier. Net advertising revenue, however, fell 2% to Rs 2,694.4 crore, as payments for advertising inventory increased.

Payments to Google Asia Pacific for advertising space increased 12.6% to Rs 32,047.6 crore in FY25, compared with Rs 28,477.8 crore in the previous year, offsetting much of the growth in gross advertising sales.

Enterprise products recorded faster growth during the year. Gross sales from offerings such as cloud services and productivity tools increased 32.4% to Rs 2,054.9 crore. Payments for related services to Google Asia Pacific rose 33.8% to Rs 1,868.4 crore, resulting in net enterprise revenue of Rs 186.5 crore, up 20% from the previous year.

Revenue from IT-enabled services provided to group companies also increased, rising to Rs 2,459.2 crore from Rs 2,389.6 crore a year earlier. Profit from this segment grew to Rs 330 crore.

Despite gains in some segments, revenue from operations declined 3% year on year to Rs 5,340.1 crore. Net sales from advertising space and enterprise products fell to Rs 2,880.9 crore from Rs 3,128.5 crore, while segment profit declined to Rs 920 crore from Rs 1,049 crore in FY24.

Total revenue for the year rose 3% to Rs 6,115.9 crore. Net profit was largely unchanged at Rs 1,436.9 crore, compared with Rs 1,424.9 crore in the previous year.

On the cost side, employee-related expenses increased 7.9% to Rs 2,145.9 crore, reflecting higher salary and wage payouts, while share-based compensation costs declined. Overall expenses fell 1.2% to Rs 4,136.3 crore.