FY25 results

Spotify’s India business returned to profitability in FY25, reporting a net profit of ₹75 crore, a sharp reversal from a net loss of ₹143 crore in the previous fiscal year. The turnaround was driven by strong revenue growth, led by a surge in paid subscriptions, along with a significant cut in advertising and marketing expenses, according to regulatory filings. Spotify India LLP recorded a 48% year-on-year increase in revenue from operations to ₹514 crore in FY25, up from ₹348 crore in FY24. Including other income, total revenue climbed 50% to ₹527 crore from ₹351 crore in the previous year. Subscription revenue emerged as the key growth engine, jumping 89% to ₹317 crore, as the music streaming industry increasingly nudged users towards paid plans by limiting free-tier consumption. In India, Spotify currently offers three subscription options: Lite at ₹139 per month, Standard priced at ₹99 per month for the first three months and ₹199 per month thereafter, and Platinum at ₹299 per month. Advertising revenue also showed healthy growth, rising 38.5% to ₹187 crore during the year. Spotify is estimated to have a user base of around 70–80 million in India. The company did not respond to queries seeking comment on the results. The Indian entity operates as a limited liability partnership, with Spotify AB holding a 99.99% stake and Spotify Ltd owning the remaining 0.01%. Improved profitability was further aided by strict cost management. Total expenditure fell to ₹451 crore in FY25 from ₹494 crore a year earlier. Advertising and marketing expenses declined sharply to ₹243 crore from ₹387 crore, delivering substantial savings. However, personnel costs rose to ₹100 crore from ₹85 crore due to higher hiring and compensation, while other expenses increased to ₹100 crore from ₹13 crore, partially offsetting the reduction in marketing spends. On the balance sheet front, total assets increased to ₹896 crore as of March 31, 2025, compared with ₹851 crore a year earlier. Cash and cash equivalents also rose to ₹634 crore from ₹599 crore, reflecting a stronger liquidity position. Despite the return to profitability, Spotify India continued to carry accumulated losses. Reserves and surplus remained negative at ₹1,221 crore at the end of FY25, though this improved from ₹1,312 crore in FY24. As per Spotify Technology SA’s global annual report, the India unit had net operating loss carry-forwards of €117 million as of December 2024. These losses can be offset against future taxable profits, subject to applicable laws and regulations. Source: Economic Times