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Sridhar Vembu's Zoho crosses Rs 12,000 crore revenue in FY25, profit slips amid rising costs

Sridhar Vembu's Zoho crosses Rs 12,000 crore revenue in FY25, profit slips amid rising costs

Chennai-based SaaS giant Zoho Corporation has finally surpassed the Rs 12,000 crore mark in annual revenue, even as profitability came under pressure.

According to filings with the Registrar of Companies, the bootstrapped firm reported consolidated revenue of Rs 12,313 crore for the financial year ending FY25, marking a 17.8% increase from the previous year. Total income, including other earnings, rose to Rs 13,543 crore.

However, net profit edged down slightly to Rs 3,191 crore from Rs 3,299 crore in FY24.

The company's in-house software offerings remained central to its expansion. Its Zoho suite contributed 57% of revenue at Rs 7,051 crore, while ManageEngine accounted for 39% at Rs 4,863 crore. Services made up the remaining share.

Geographically, North America continued to be its largest market, contributing 41% of revenue. Asia and Europe followed, accounting for 30% and 23% respectively.

The company's expenses increased at a faster pace than its revenue, climbing 30.5% year-on-year to more than Rs 9,200 crore.

Employee costs were the largest component, rising 29% to Rs 4,347 crore, while advertising and promotional spending jumped over 31% to Rs 2,230 crore.

Infrastructure-related costs also increased, with depreciation and amortisation reflecting continued investment in data centres and technology. Tax expenses rose significantly to Rs 1,112 crore, further affecting the bottom line.

In January 2025, co-founder Sridhar Vembu stepped down from the role of CEO to take on the role of Chief Scientist, with Shailesh Kumar Davey appointed as Group CEO.

Zoho has built a broad portfolio of cloud-based software products for businesses of all sizes. Its offerings span CRM, finance, human resources, collaboration, marketing automation, and other enterprise applications.

Through ManageEngine, the company also provides IT management tools covering network monitoring, cybersecurity, identity management, and IT operations. Zoho additionally offers low-code development through Zoho Creator and workplace productivity software through Zoho Workplace.

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