Weak core show takes a big toll on Samsung India as net profit plunges 36% to ₹7,228 cr in FY26

Kolkata: Samsung India's net profit plunged 36% year-on-year (yoy) to ₹7,228 crore in FY26, though revenue from operations rose a marginal 1.2% to ₹1,12,527 crore, with its core smartphone business, exports, and margins coming under pressure, the Korean electronics major's latest regulatory filings with the registrar of companies (RoC) showed.

The country's largest consumer electronics company did not give any specific reason for the decline in profitability or slow revenue growth in its directors' report filed with the RoC and accessed through business intelligence platform Tofler.

However, the filings show that profitability in Samsung India's smartphone and home appliance businesses was impacted during the year, alongside a decline in smartphone sales and exports.


Also Read | Samsung India profit falls 36 pc to 7,228 cr in FY26; revenue up 1.2 pc

Samsung's bread-and-butter smartphone business reported a 1.4% decline in revenue to ₹81,472 crore in FY26 from ₹82,595 crore a year earlier. Revenue from its telecom network business fell 12.8% to ₹1,599 crore, while export sales declined 10% to ₹41,219 crore. Amongst other operating revenues, Samsung India's production linked incentive income halved y-o-y to ₹1,200 crore in FY26.

Analysts attributed the pressure on profits partly to the depreciation of the rupee and a sharp increase in memory chip prices since October that increased cost pressure, while the decline in smartphone sales also weighed on the company's overall performance. Samsung India's cost of materials consumed rose 3% to ₹74,513 crore in FY26, pushing up its overall expenses, the filing revealed.

Samsung has been facing mounting pressure in its smartphone business as memory prices have surged and competition in the Indian market has intensified.

Also Read | India’s young consumers are giving Samsung’s AI appliance bet a big boost

Data from market tracker Counterpoint Research showed Samsung's volume share in India's smartphone market fell to 15% in calendar 2025 from 16% in 2024. Vivo led the market in both years. Samsung, however, narrowed the gap with Vivo this year, with the difference in volume share shrinking from 3.7 percentage points in June 2025 to just 0.2 percentage points in June 2026, according to the latest Counterpoint data.

Samsung India said in the RoC filing that considering the rapidly changing industry scenario and need for further strengthening the business operations of the company, the directors did not recommend any dividend in FY26.

Retained earnings stood at ₹49,430 crore in FY26, against ₹42,199 crore a year earlier. An email sent to Samsung India remained unanswered till Tuesday press time. ET reported Samsung India has begun cutting jobs in batches as sales and margins have come under pressure in its smartphone business following a more-than-doubling of chip prices over the past 9-10 months.