Apple India's Profit Jumps 66% to ₹5,311 Crore as Revenue Crosses ₹1 Lakh Crore for the First Time

Apple's business in India has crossed a milestone. The company's Indian subsidiary reported operating revenue of more than ₹1 lakh crore for the first time in the financial year ended March 31, 2026, while its net profit jumped 66%, according to regulatory filings reported by Inc42 on October 20.

Net profit rose to ₹5,311 crore in FY26 from ₹3,196 crore a year earlier. Operating revenue increased 31.4% to ₹1.04 lakh crore from ₹79,060 crore, underlining India's emergence as one of Apple's fastest-growing major markets.

The results come in a year when India's overall smartphone market has struggled, with shipments falling sharply in the July-to-September quarter as rising memory chip prices pushed up handset costs. Apple's performance in FY26 shows how the premium end of the market has remained resilient, even as mass-market segments have weakened.

Where the money came from

The bulk of Apple India's revenue came from selling its products. Revenue from traded goods, which includes iPhones, Macs, iPads and other devices, rose about 33% to ₹99,068 crore from ₹74,680 crore.

Services added to the total. Revenue from AppleCare support services grew 7.6% to about ₹4,293 crore, and maintenance contract revenue was ₹492.4 crore. The company also earned finance income of ₹463 crore and other income of ₹291 crore.

Total expenses rose 28% to ₹96,224 crore from ₹75,190.7 crore. The largest expense was purchases of traded goods, which rose 21.6% to ₹78,228.7 crore. Licence fees more than doubled to ₹10,373.7 crore from ₹4,257.8 crore, while employee benefit expenses rose 13% to about ₹3,531 crore. Marketing and advertising spending increased 22.6% to ₹1,075.2 crore.

Because revenue grew faster than costs, profit expanded sharply, giving Apple India a net margin of about 5% of operating revenue.

India as a manufacturing base

Beyond domestic sales, India has become central to Apple's global supply chain. iPhone exports from India exceeded ₹2 lakh crore in FY26, according to the report, making India one of Apple's largest production bases outside China.

Apple's contract manufacturers have expanded rapidly in India over the past few years, supported by the government's production-linked incentive scheme for electronics. A growing share of iPhones sold around the world, including in the United States, are now assembled in Indian factories. Smartphones have become one of India's largest export categories, led by Apple.

The shift reflects Apple's strategy of diversifying production away from China, accelerated by trade tensions between Washington and Beijing and the disruptions of the pandemic. For India, it has brought investment, jobs and expertise in high-precision electronics manufacturing, and helped build an ecosystem of component suppliers.

Retail expansion and new services

Apple has also deepened its retail presence in India. It opened its first company-owned stores in Mumbai and New Delhi in 2023 and has since expanded to more cities. Owning its retail channel allows Apple to control the customer experience and capture more of the value from sales.

The company has continued to add services. Apple Pay launched in India last month in partnership with Axis Bank, entering a payments market dominated by the government-backed Unified Payments Interface. Apple also said India delivered strong double-digit revenue growth in the first quarter of FY27, helped by sales of the MacBook Neo.

Riding the premiumisation wave

Apple's success in India rides a broader trend of premiumisation. While most Indians buy phones priced below ₹20,000, a growing segment of affluent and aspirational consumers is willing to pay for premium devices, often using financing and trade-in offers to make them more affordable. Easy monthly instalment plans and festive discounts have made iPhones accessible to a wider audience.

The premium segment has proved more resilient than the mass market during periods of price pressure. Buyers of high-end phones tend to be less sensitive to price increases and more influenced by brand, features and ecosystem.

That resilience was tested in the July-to-September quarter of 2026, when India's total smartphone shipments fell 26%, according to research firm Omdia. Apple's shipments declined 20% in that quarter, as sales of older iPhone models were weaker than expected, although the iPhone 18 Pro and Pro Max went on sale on September 18.

Supply constraints ahead

Apple has cautioned that it expects supply constraints in the coming months because of limited availability of advanced semiconductors and memory components. Those constraints could affect the availability of iPhones, Macs and iPads in India.

The global shortage of memory chips, driven by surging demand from AI data centres, has raised costs for device makers worldwide. Apple, with its scale and long-term supplier relationships, is better placed than most to secure components, but it is not immune.

How Apple's India business has evolved

Apple's presence in India has changed dramatically over the past decade. For years, the company had a small market share, as its premium-priced iPhones were out of reach for most Indian consumers and it relied on third-party distributors and resellers. High import duties on smartphones added to prices.

The company's strategy shifted as it began assembling iPhones in India through contract manufacturers, opened its own online store and then its first flagship retail stores in Mumbai and Delhi in 2023. Local production reduced the impact of import duties and allowed Apple to offer more attractive financing, trade-in deals and festive discounts.

India is now one of Apple's fastest-growing markets, and chief executive Tim Cook has repeatedly highlighted the country's importance to the company's future growth, both as a consumer market and as a production base that helps diversify its supply chain away from China.

What it means

Apple India's FY26 results highlight India's growing importance to the world's most valuable technology companies, both as a consumer market and as a manufacturing hub. Crossing ₹1 lakh crore in revenue places Apple among the largest consumer-facing technology businesses in the country.

For Indian policymakers, Apple's expansion is a showcase for the Make in India strategy and the production-linked incentive scheme. For competitors, it signals the strength of Apple's brand among India's growing affluent class. The coming quarters will test whether that momentum can be sustained as memory costs rise, supply tightens and the broader smartphone market remains under pressure. For Apple, the results confirm that India has moved from the periphery of its global business to one of its most important growth engines, both as a market and as a manufacturing hub.