Samsung Electronics India Unit's Net Profit Plunges 36% in Fiscal 2025–26 Amid Higher Costs and Royalty Burden

【New Delhi, India—Pragya Awasthi, Correspondent】Samsung India Electronics' consolidated net profit for fiscal 2025–26 fell 36% from the previous year.
According to financial data filed with India's Registrar of Companies (RoC) on the 23rd and obtained through corporate information platform Tofler, Samsung India Electronics' sales rose slightly during the period. However, profitability deteriorated due to increased expenses, including royalty payments, and lower exports.
Samsung India Electronics' consolidated net profit for fiscal 2025–26 was 72.281 billion rupees (1.0227 trillion won), down 36% from 112.875 billion rupees (1.5971 trillion won) in fiscal 2024–25. Sales rose 1.2% to 1.111834 trillion rupees (15.7324 trillion won). Total costs, however, increased 3.54% to 1.04 trillion rupees (14.716 trillion won), outpacing sales growth.
The decline in sales in Samsung India Electronics' core mobile phone business also contributed to its weak performance. Revenue from the 'mobile phones' segment, which includes mobile devices and accessories, fell 1.35% to 814.722 billion rupees (11.5283 trillion won) from 825.95 billion rupees (11.6871 trillion won) in fiscal 2024–25. Samsung Electronics competes with Apple in India's premium smartphone market and with Vivo, Xiaomi, Oppo and realme in other price segments.
Non-mobile businesses, by contrast, posted growth. Revenue from home appliances rose 3.52% to 122.406 billion rupees (1.7332 trillion won). Revenue from the audio-visual segment, including TVs and soundbars, increased 8.5% to 80.559 billion rupees (1.1407 trillion won). Samsung Electronics is expanding its business portfolio in India beyond smartphones to include TVs and home appliances.
While sales in India increased, export revenue declined. Samsung India Electronics' export revenue fell 5.64% to 410.686 billion rupees (5.8153 trillion won) from 435.278 billion rupees (6.1635 trillion won) in fiscal 2024–25. Revenue related to software development and exports, meanwhile, rose 6.85% to 24.301 billion rupees (344.1 billion won).
Samsung Electronics also cut advertising and promotional expenses to reduce costs. The expenses totaled 38.505 billion rupees (545.2 billion won), down 11.9% from 43.707 billion rupees (618.8 billion won) in fiscal 2024–25. Royalties paid to Samsung Electronics' headquarters in South Korea, however, increased 7.2% to 34.74 billion rupees (492.2 billion won).
Meanwhile, Samsung India Electronics is pursuing cost-efficiency measures focused on its TV and home appliance businesses. As part of an organizational restructuring, the company is reducing its workforce across various levels, including directors, team leaders, branch managers and regional managers.

[email protected] Pragya Awasthi, Correspondent Reporter