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Apple’s growing popularity in India, fuelled by rising demand for iPhones and other premium devices, helped the company cross the Rs 1 lakh crore revenue mark for the first time in FY26. Its net profit also surged 66% year-on-year to Rs 5,311 crore during the fiscal year. Apple India’s revenue from operations grew 31.4% year-on-year to Rs 1,03,853 crore from Rs 79,061 crore in FY25, according to its financial statements filed with the Registrar of Companies (RoC). Apple India primarily generates revenue through the sale of premium consumer electronics, including iPhones, MacBooks, iPads, Apple Watches, AirPods and accessories. The company sells these products through its online and offline retail channels, alongside authorised resellers. Product sales remained the key growth driver, with revenue from this segment rising 32.7% to Rs 99,068 crore in FY26 from Rs 74,681 crore in FY25. The segment accounted for 95.4% of total operating revenue. Apple India also earns revenue from technical support services and maintenance contracts, including offerings such as AppleCare, which provides eligible customers with technical assistance, hardware repairs and extended service coverage. Revenue from technical and other support services stood at Rs 4,293 crore. Income from maintenance contracts increased 26.5% to Rs 492 crore. The iPhone maker also earned Rs 754 crore in non-operating income, primarily from interest and other sources, which lifted its total income to Rs 1,04,606 crore in FY26. On the expense side, cost of materials remained the largest component, which rose 21.6% to Rs 78,229 crore from Rs 64,336 crore in FY25. The expense accounted for 81.3% of the total and primarily reflects the cost associated with the products sold by the company. License fees more than doubled to Rs 10,374 crore in FY26 from Rs 4,258 crore in FY25. The expense accounted for 10.8% of total expenses and was the company’s second-largest cost head. These fees, paid to its parent company, may cover the use of royalty and other licensed rights. Employee benefit expenses rose 13% to Rs 3,531 crore in FY26, including Rs 1,514 crore in ESOP-related expenses. Advertising and promotional expenses increased 22.6% to Rs 1,075 crore during the year, as the company continued to promote its products in the Indian market. Depreciation and amortisation expenses stood at Rs 746 crore, while warranty claim expenses declined 16.1% to Rs 329 crore. Other overheads, including legal and professional fees, finance costs, communication expenses and administrative costs added another Rs 1,940 crore. Notably, Apple India paid Rs 3,072 crore in taxes during FY26. The company’s EBITDA surged 87.4% year-on-year to Rs 8,816 crore from Rs 4,704 crore in FY25. Its EBITDA margin improved to 8.49% from 5.95%, while return on capital employed (ROCE) rose to 67% from 55.6%. The expense-to-operating revenue ratio also improved to 0.93 from 0.95 during the fiscal year. Apple India’s revenue growth outpaced expense growth in FY26, helping its net profit rise 66.2% year-on-year to Rs 5,311 crore from Rs 3,196 crore in FY25. On the balance sheet front, Apple India’s cash and bank balances more than doubled to Rs 17,418 crore as of March 2026. Its current assets also rose 69% to Rs 38,101 crore during the same period. Between the India profit numbers and the licensing fees, there is little doubt that India has emerged as a key market for Apple in the last three years. While the numbers may look small in the context of overall revenues of close to $450 billion expected this year from the firm globally, the fact remains that between its emergence as a key manufacturing hub, and a growth rate that is well above overall growth rate for Apple elsewhere, India is beginning to make its presence felt. The big question for Apple, and even India-watchers, is just how far the India market will grow, or the point at which the market here also slows down to single digit levels perhaps. From all accounts, that question is left for FY28 and beyond for now, as seen in the response to the latest offerings in the country. Crossing the $15 billion level in India by FY28 or earlier at a stretch will be a key milestone for the firm for now, while consumer behaviour in India in terms of replacement time or upgrades will be keenly watched as well. With Apple Pay also making an entry in the market, the firm is certainly pushing to round off the experience for its buyers. With a clear perception advantage on security and privacy, Apple justifies its significant premium for a large segment of the market, even as recent price hikes might be beginning to push the limits of aspiration. It has been helped along by a rather colourless show by Samsung, which has counted on more of the same to market itself here. We are betting that it will not be Apple, but a competitor that finally disrupts the super-premium or Rs 1 lakh plus mobile phone market, if the situation on the hardware front normalises to allow some flexibility to smaller firms.
document fetched 2026-10-24 11:25