Zoho Reports 17.7% Revenue Growth, Profit Decline in FY25

Zoho Reports 17.7% Revenue Growth, Profit Decline in FY25

Synopsis

In financial year 2025, Zoho focused on cost controls and process efficiencies to help sustain margins. The company said its performance remained “satisfactory”. The company operates across a wide range of software products, including cloud applications, enterprise tools, and communications platforms. It continues to invest in infrastructure such as data centres and office campuses.
Agencies
Zoho founder Sridhar Vembu
SaaS firm Zoho Corporation reported operating revenue of Rs 12,313 crore in FY25, up 17.7 % from Rs 10,456 crore reported a year ago, according to filings with the Registrar of Companies on Wednesday. The Chennai-based company reported a net profit of Rs 3,191 crore, slightly lower than Rs 3,299 crore recorded in FY24.

In financial year 2025, Zoho focused on cost controls and process efficiencies to help sustain margins. The company said its performance remained “satisfactory”.

The firm’s expenses rose to Rs 9,216 crore in FY25, from Rs 7,061 crore a year ago, on account of rising employee benefit costs and other expenses.

It attributed growth to rising revenue from operations and other income, alongside continued investments in product development and infrastructure. Earlier this week, the government said it has migrated around 16.68 lakh official email accounts of ministries and departments to a cloud-based platform managed by Zoho, with total expenditure reaching Rs 180.10 crore to the government.

The company operates across a wide range of software products, including cloud applications, enterprise tools, and communications platforms. It continues to invest in infrastructure such as data centres and office campuses.

During the year, the company also expanded its global footprint, incorporating multiple overseas subsidiaries across regions including the US, Europe, and Asia.

Geographically, North America remained the largest market for Zoho, contributing 41% of revenue at Rs 5,028 crore (FY25). Asia and Europe followed with 30% (Rs 3,711 crore) and 23% (Rs 2,819 crore), respectively. Other markets such as Latin America, Africa, Australia, and New Zealand also contributed to the overall revenue.

Zoho’s performance comes at a time when SaaS firms are navigating a valuation reset, as AI-led tools narrow product differentiation across categories.

Sridhar Vembu, founder of Zoho Corporation had stepped down as chief operating officer (CEO) in January 2025 to become the company’s Chief Scientist, focusing on R&D and AI initiatives. Co-founder Shailesh Kumar Davey had taken over as the new Group CEO.

This editorial summary reflects ET Tech and other public reporting on Zoho Reports 17.7% Revenue Growth, Profit Decline in FY25.

Reviewed by WTGuru editorial team.