Zoho posts Rs 2,800 Cr profit in FY23, revenue up by 30%


Zoho is one of the few tech companies which has managed to crack the industry code of growing scale along with a healthy bottom line, and that too without any external capital – its operating revenue spiked nearly 30% in FY23 whereas profits crossed Rs 2,800 crore.

The Sridhar Vembu-led Zoho’s revenue from operations grew 29.7% to Rs 8,703.6 crore during the fiscal year ending March 2023 in contrast to Rs 6,711 crore in FY22, according to its consolidated financial statements with the Registrar of Companies.


Zoho majorly generated revenue through the sale of its own developed enterprise IT management software and business application software via its products namely (Manage Engine and Zoho). It also collected Rs 16.6 crore from its other operating activities during FY23.

Additionally, it also made Rs 455 crore via interest and gains on financial assets in FY23 which took its overall revenue to Rs 9,158.9 crore.

Geography-wise, North America is on top with Rs 3,988.8 crore revenue followed by Europe, Asia and Latin America with Rs 1,952.5 crore, Rs 2,283.5 crore and Rs 121.8 crore, respectively. While the remaining Rs 357 crore came from Africa, Australia and NewZealand during FY23.

As per TheKredible, employee benefit expenses accounted for 50.5% of the total expenditure. This cost surged 49% to Rs 2,722 crore in FY23 from Rs 1,827 crore in FY22. Advertising & promotional expenses were other major costs which soared 89.4% to Rs 1,354 crore in FY23 from Rs 714.8 crore in FY22.

Expense Breakdown

Total ₹ 3572 Cr
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Total ₹ 5393 Cr
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  • Employee benefits
  • Web hosting
  • Advertisment & promotions
  • Data center expenses
  • Legal & professional
  • Others

Zoho also incurred web hosting, data center, legal and other expenses during the year, akin to which its total expenses spiked 51% to Rs 5,393 crore during FY23 from Rs 3,572 crore in FY22.

Head to TheKredible for complete expense breakdown and year-on-year financial performance.

Coming to the bottom line, Zoho’s profits crossed Rs 2,836 crore during FY23 against Rs 2,749 crore in FY22. Amid rising expenses, its cash inflows from operations, however, declined 9% to Rs 2,986 crore during the last fiscal year.

EBITDA margin and ROCE of the company registered at 44.55% and 31.61% during the year. On a unit level, Zoho spent Re 0.62 to earn a rupee of operating revenue in FY23.


FY22 FY23
EBITDA Margin 53.07% 44.55%
Expense/Rupee of ops revenue ₹0.53 ₹0.62
ROCE 38.96% 31.61%

Zoho’s direct competitor Freshworks registered a 19% growth in its revenue to $153.6 million (Rs 1,274 crore approximately) in September quarter (Q3 CY) while operating losses stood at $38.7 million (Rs 321 crore) compared to ($58.3 million (Rs 483 crore) in the third quarter of 2022. For the last calendar year 2023, the NASDAQ-listed company projected revenues of $595.5 million and has set a goal of clocking $1 billion in revenue by 2026.

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