Netflix India's FY26 net up 6% at Rs 90 crore

Netflix Entertainment Services India’s net profit grew 6% year-on-year to Rs 90 crore in FY26, while total income rose 17% to Rs 4,477 crore, reflecting pressure on margins amid rising costs, according to filings with the Registrar of Companies (RoC).

The local operating entity of US-based Netflix saw a profit growth that moderated from FY25, when earnings rose 63% year-on-year. Turnover growth was driven by subscriber additions, as the streaming platform continued to expand its India business.

Profit growth, however, lagged income expansion as total expenditure rose 17% to Rs 4,339 crore from Rs 3,711 crore in FY25. Other expenses, the company’s largest cost head, increased 17% to Rs 4,230 crore, while personnel expenses rose 13% to Rs 99 crore.


Netflix India’s paid subscriber base is estimated at 20-25 million.

Email queries to the company did not elicit a response till press time.

Meanwhile, Los Gatos Production Services India LLP, Netflix’s India-based content production entity, reported a 42% decline in net profit to Rs 105 crore in FY26. Total income fell 2% to Rs 4,177 crore, while expenditure increased 1% to Rs 4,015 crore.

The decline in profitability comes amid significant content costs associated with a growing production business. Financial performance is influenced by multiple factors, primarily the slate of titles launched in a particular year and their production costs. The entity’s financials are not indicative of Netflix’s overall performance in India since it is a buy-sell entity for Netflix’s local titles.

The two entities reported contrasting balance-sheet trends. Netflix India’s cash and cash equivalents declined 21% to Rs 630 crore, while Los Gatos’ cash balance rose 31% to Rs 1,068 crore. Los Gatos’ trade receivables fell to Rs 432 crore from Rs 696 crore, while inventory declined to Rs 2,950 crore from Rs 3,080 crore.

Both entities also disclosed potential income tax liabilities relating to FY21 to FY23, which are not reasonably ascertainable due to pending High Court CIT(A) and Bilateral Advance Pricing Agreement proceedings.

In an interview with ET in August, Netflix CEO Ted Sarandos described India as one of the company’s most strategic markets, citing its appetite for entertainment, thriving creative ecosystem, rising smartphone and connected TV penetration, and affordable internet.

“There is a big appetite for entertainment in India and a large consumer base. I think those people have generally been underserved since there aren’t enough screens for as many people who want to watch a movie. We are trying to solve it through different screens like TV and mobile. That’s why I think the market is so attractive; and the principles of entertainment are exactly the same,” he said.

Separately, Netflix’s India revenue grew 18% year-on-year on a foreign-exchange-neutral basis in the July-September quarter, while viewing hours rose 24% and paid net additions hit a quarterly record, according to its Q3 2026 shareholder letter. Netflix does not disclose India-specific financials or subscriber numbers. Its parent, Netflix Inc, is listed on Nasdaq.

The Q3 growth was driven by a content slate led by Lock Upp, Netflix’s first daily reality series, alongside scripted titles Musafir Cafe and Operation Safed Sagar. Lock Upp recorded the highest viewing hours of any Netflix title in India in its first 91 days.

Viewing hours per member rose by low-to-mid single digits. The content slate, along with Netflix’s first transaction-based loyalty bundle with Flipkart, helped the company achieve its largest-ever quarterly paid net additions in India.