Spotify’s India arm has reported its first profit, marking a key milestone in the global music streaming platform’s journey in the country. Spotify India swung to a net profit of Rs 75 crore in FY25, compared with a net loss of Rs 143 crore in the previous financial year, driven by robust revenue growth and sharply lower advertising and marketing spends, according to filings with the corporate affairs ministry.

According to an Economic Times report, the turnaround was led by a sharp rise in paid subscriptions and tighter cost controls. Spotify India LLP posted a 48 per cent jump in revenue from operations to Rs 514 crore in FY25, up from Rs 348 crore a year earlier. Total revenue, including other income, rose 50 per cent year-on-year to Rs 527 crore.

Subscription income surged 89 per cent to Rs 317 crore as the platform, in line with broader industry trends, pushed paid plans while tightening free consumption. Spotify India currently offers three paid plans — Lite at Rs 139 per month, Standard at Rs 99 for the first three months followed by Rs 199 per month, and Platinum at Rs 299 per month. Advertising revenue also grew, rising 38.5 per cent to Rs 187 crore during the year. Spotify India is estimated to have a user base of 70–80 million in the country, though the company did not respond to emailed queries.

A significant reduction in costs further supported the return to profitability. Total expenditure declined to Rs 451 crore in FY25 from Rs 494 crore in the previous year. Advertising and marketing expenses fell steeply to Rs 243 crore from Rs 387 crore, reflecting a more disciplined approach to customer acquisition and brand spending. Personnel expenses increased to Rs 100 crore from Rs 85 crore, while other expenses rose to Rs 100 crore from Rs 13 crore, partially offsetting savings from lower marketing outlays.

On the balance sheet, Spotify India’s total assets stood at Rs 896 crore as of March 31, 2025, compared with Rs 851 crore a year earlier. Cash and cash equivalents increased to Rs 634 crore from Rs 599 crore, indicating a stronger liquidity position.

Despite the profitable year, the Indian unit continues to carry accumulated losses. Reserves and surplus remained negative at Rs 1,221 crore at the end of FY25, though this improved from Rs 1,312 crore in FY24. Globally, Spotify Technology SA disclosed in its annual report that the India business had net operating loss carry-forwards of €117 million as of December 2024, which can be set off against future taxable profits, subject to regulations.

Spotify India operates as a limited liability partnership between Spotify AB, which holds a 99.99 per cent stake, and Spotify Ltd, which owns the remaining 0.01 per cent. The FY25 performance signals a meaningful shift for the streaming major in one of its most competitive and price-sensitive markets, as paid subscriptions begin to translate into sustainable financial gains.