The Indian arm of the social media platform, X Communications India Pvt Ltd (formerly Twitter Communications India Pvt Ltd), has reported a significant decline in profitability for the year ended March 31, 2025 (FY25). The company’s net profit slid by about 52%, falling to ₹1.5 crore from ₹3.2 crore in FY24. YourStory.com
Key figures & drivers
- Revenue from operations was reported at ~₹20.5 crore in FY25, slightly down from ~₹21.2 crore in FY24.
- Total revenue stood at ~₹21.4 crore in FY25, modestly higher due to exchange gains.
- Employee benefit expenses surged by ~65%, rising to ~₹10.2 crore (from ~₹6.2 crore in FY24). This was a major factor in the fall in profit.
- The workforce remains small (12 employees) but share-based compensation and accounting treatment of RSUs (Restricted Stock Units) contributed to the expense increase.
- The company’s net worth grew only marginally to ~₹62.3 crore, aided by the retained earnings.
- Revenue mix shifted: marketing support revenue rose to ~₹11 crore (from ~₹4.1 crore) while R&D revenue fell to ~₹8.1 crore (from ~₹16.3 crore).
- Contingent liability: the company is contesting GST demands totalling ~₹11.4 crore, which are still pending.
Why does this matter?
For a company like X India, which operates as the Indian subsidiary of the global platform X Corp (formerly Twitter), the steep fall in profit signals a few important things:
- Rising operating costs — The jump in employee expenses shows that even smaller regional arms are feeling pressure from increasing compensation, regulatory & accounting changes.
- Flat to weak revenue growth — With operating revenue slightly down, there is limited room to absorb rising costs.
- Shift in business lines — The change in revenue mix (more marketing support, less R&D) may reflect strategic adjustments – but such shifts can affect margins and future growth potential.
- Potential regulatory/tax risk — The contested GST claims could add uncertainty to the financials.
What to watch next
- The company’s next annual report may provide further detail on how RSU compensation and staffing cost trends will evolve, and whether revenue growth can return.
- How X India addresses cost control—especially given the high employee benefit burden—will be key.
- Whether the business will ramp up its marketing support segment further, and how that affects margins and overall profitability.
- Any update on the GST demand dispute: a large liability could impact future profitability or cash flows.
Context & implications
The broader tech / digital platform space in India is under cost pressure, as growth has matured and operating costs climb. A company posting very low profit (₹1.5 crore) with flat revenues suggests limited margin for error. For investors or observers, this means that regional arms of global platforms are not immune to global cost pressures, regulatory and tax burdens, and evolving business models.
Conclusion
The focus keyword “X India profit” captures the central theme here—X India’s profit collapse by ~52% to ₹1.5 crore in FY25 is a red-flag for margin stress and cost pressure, despite largely stable revenue. While not catastrophic in absolute terms, it underlines the operating challenges for tech subsidiaries in India. Watching the company’s cost control and revenue ramp-up in the next year will be crucial.
