Amazon Seller Services, Amazon’s marketplace business in India, has reported a net loss of ₹374.3 crore for FY25, marking an 89% reduction from the ₹3,469.5 crore loss in FY24.
This sharp trimming of losses was achieved alongside revenue growth and improved operational discipline.
Revenue Growth & Revenue Mix
- Total operating revenue rose 19% year-on-year, climbing to ₹30,139 crore in FY25 from ₹25,406 crore in FY24.
- The revenue mix included:
• Marketplace services: ~₹17,328 crore (≈ 58%)
• Advertising & logistics and other add-ons: ₹8,342 crore
• Related-party services: ₹4,468 crore
Costs, Cash Flow & Efficiency Gains
Amazon India’s reduced loss is a result of several cost control and efficiency measures:
- Expenses still high: total costs stood at ₹30,865.5 crore. Delivery charges (≈ ₹8,336.7 crore) and professional services fees (≈ ₹3,794.7 crore) were among the large cost heads.
- Other costs like advertising, payment processing, and communications also contributed but grew more slowly than revenues, reflecting a leaner spend strategy.
- Pre-depreciation, operations swung into profit: Amazon generated ₹2,747 crore positive operating performance before depreciation & amortisation, which were ~₹3,121.5 crore.
- Cash flows were strong: operations generated about ₹5,062 crore in cash flow. Also, liquidity was good with year-end cash & equivalents of ~₹4,658.7 crore; capital expenditure in FY25 was ₹2,762.9 crore, mainly toward infrastructure, content, and tech investment. YourStory.com
What This Means & Challenges Ahead
- Nearer to Break-Even: The dramatic drop in loss suggests Amazon India is edging closer to sustainable profitability, especially if non-cash charges (depreciation/amortisation) are excluded.
- Margin Pressure Remains: High recurring costs like deliveries, logistics, and infrastructure investment still weigh heavily. To reach full profitability, Amazon has to keep costs under check even as it scales.
- Competitive Landscape: Market pressure from Flipkart, Meesho, Reliance Retail, etc., remains intense. Efficiency and customer experience will be key differentiators.
- Room for Growth in Ad & Logistics Services: With marketplace dominating revenue share, the push into advertising, logistics, and services can bolster margins if managed well.
Amazon India’s FY25 results show a strong rebound — losses down nearly 90%, solid revenue growth, and improved cash flow. While the path to full profitability still has hurdles, the financial discipline and revenue mix are promising signs.
