Amazon Seller Services, which operates the Amazon marketplace in India, has turned operationally profitable in FY25, a first in its 12-year presence in the country. The company posted an earnings before interest, tax, depreciation and amortisation (Ebitda) of Rs 2,770 crore, while on a net basis, it narrowed its losses sharply by 89% to Rs 374 crore. Revenue from operations rose 18.6% year-on-year to Rs 30,138.6 crore while cash flow from operations surged to Rs 4,942 crore, up 7x from Rs 720 crore in FY24.
The growth came during a year when the annual growth rate across India’s e-retail slowed to 10-12%, a sharp decline from the 20%+ yearly growth seen in previous years, according to a Flipkart and Bain & Company report in March.
Total expenses climb to 6% year-on-year to Rs 30,865.6 crore in FY25
The company was able to reduce its losses significantly as the growth in expenses was much slower than the revenue growth. Total expenses in FY25 rose 6% year-on-year to Rs 30,865.6 crore, according to its financial statements sourced via Tofler.
Its largest cost item, other expenses, which includes costs related to advertising, legal fees, delivery charges and others, increased 8% year-on-year to Rs 24,835 crore. Other than that, employee-related costs and depreciation costs, both reduced marginally during the year.
Amazon unit merger with Amazon Transportation Services (ATS)
The entity is in the midst of a merger with its Indian logistics arm, Amazon Transportation Services (ATS), to reduce legal and regulatory compliance. The National Company Law Tribunal has granted an interim clearance for that.
In comparison, Amazon India’s local rival Flipkart reported a wider 24% year-on-year net loss of Rs 5,189 crore in FY25, as expenses rose as quickly as revenue, and the share of loss from its associate companies increased. Revenue from operations of the Walmart-owned company rose 17% year-on-year to Rs 82,787 crore, while total expenses grew similarly to Rs 88,121 crore.