Industry Odisha Bureau, Sep 23: Samsung India’s net profit fell sharply despite stable revenue in FY26. Declining smartphone sales, a revenue decrease in exports, and rising costs weighed heavily.
Samsung India reported a striking divergence in its FY26 results. Net profit fell 36% year-on-year to ₹7,228 crore. Revenue from operations grew just 1.2% to ₹1,12,527 crore. That gap points to mounting pressure beneath stable top-line numbers.
Smartphones and Exports Weaken
Samsung India’s smartphone business, its largest segment, lost ground. Smartphone revenue fell 1.4% to ₹81,472 crore in FY26. That compares with ₹82,595 crore recorded a year earlier. Declining smartphone sales reflected intensifying competition within India’s market. Export sales also registered a steep decline in export figures. Export revenue dropped 10% to ₹41,219 crore for the year. Both trends added meaningful pressure to Samsung India’s overall performance.
Chip Costs Tighten Margins
Analysts linked part of the profit pressure to external factors. Rupee depreciation added cost pressure across globally priced components. Sharply higher memory-chip prices further squeezed smartphone production costs. Samsung India’s materials consumed rose 3% to ₹74,513 crore. That increase outpaced the company’s modest 1.2% revenue growth. This mismatch between costs and revenue weighed directly on margins.
Telecom and PLI Income Add Pressure
Samsung India’s telecom-network business also contracted during FY26. Revenue there fell 12.8% year-on-year to ₹1,599 crore. Production-linked incentive income added another pressure point too. That income roughly halved to ₹1,200 crore during the year. Together, these declines compounded challenges facing Samsung’s core businesses.
Samsung Battles for Smartphone Share
Counterpoint Research data sheds further light on Samsung’s position. Samsung’s smartphone volume share fell to 15% during 2025. That compares with a 16% share recorded in 2024. Vivo led India’s smartphone market across both years. Samsung, however, narrowed its gap with Vivo notably since then. The volume-share gap stood at 3.7 percentage points in June 2025. It shrank to just 0.2 percentage points by June 2026. This narrowing suggests Samsung has been regaining competitive ground.
Retained Earnings Provide Balance
Despite the sharp profit decline, retained earnings actually grew. Samsung India’s retained earnings reached ₹49,430 crore in FY26. That figure stood at ₹42,199 crore during the previous year. The company recommended no dividend for FY26 regardless. It cited a rapidly changing industry environment as the reason. Directors also flagged the need to strengthen business operations further.
Conclusion
Samsung India’s FY26 results reveal a company under real pressure. Stable revenue masked declining smartphone sales and a revenue decrease abroad. Rising material costs and falling PLI income compounded that strain. Yet a narrowing gap with Vivo shows renewed competitive resilience. Samsung India now faces the task of restoring lost profitability.
