How Oracle’s India business has hit a new milestone with double digit growth

US-based tech major Oracle that has been registering robust growth globally led by cloud services and infrastructure, saw its flagship Indian operations hit a new milestone last year, having doubled its revenue since the pandemic to $2.5 billion. Coupled with other units in the country, the company has crossed over ₹30,000 crore in topline and may indeed be nearing $4 billion in business in the country factoring in some of the other independent units operating in India.

Oracle operates via multiple entities in India but has three key operating business: flagship unit Oracle India Pvt Ltd, public listed Oracle Financial Services Software Ltd that is majority owned by Oracle and Oracle Solution Services India.

Oracle India offers suites of integrated applications plus secure, autonomous infrastructure in the Oracle Cloud. Oracle Financial, which derives majority of its revenues from product licences and related activities besides IT solutions and consulting services has been a slow mover. Its revenues rose by around 34% since FY20 with growth in FY24 pegged at 15%.

Oracle Solution Service which largely provides services outside India saw topline move to ₹3,413 crore in FY24. This unit has seen its revenues more than double since the pandemic.

The flagship business unit that houses cloud services and other IT services and on-premise licence services among others also has had a heady growth in the last four years, doubling its business to ₹20,500 crore, with growth during FY24 pegged at around 12%. However, its cloud services unit has been on another trajectory with segment revenues shooting up nearly nine times to around $500 million in FY24 over a four-year period, according to data collated by Techcircle’s sister unit VCCEdge, a financial database.

The growth has been propelled by a rise in demand for Artificial Intelligence (AI) and cloud software/services to support it.

In an exclusive conversation with TechCircle, Shailender Kumar, Managing Director–Oracle India said that Oracle's growth stems from its comprehensive solutions portfolio, including infrastructure, applications, hybrid cloud, and industry-specific offerings. “Unlike most hyperscalers, Oracle Cloud offers customers deployment flexibility across public, private, or hybrid cloud models within their data centres,” he said.

Oracle's multicloud strategy, supported by partnerships with Microsoft Azure, Google Cloud Platform, and AWS, is a key growth driver. Furthermore, its long-standing investment in Generative AI (GenAI) and Machine Learning (ML), deeply integrated across its infrastructure, platform services, databases, and business applications, has offered a competitive advantage, enabling customers to optimise workloads and address strategic challenges, said Kumar.

Kumar did not comment on specific India financial numbers, but said the company has witnessed strong adoption from the public sector, banking, financial services and insurance (BFSI), and mid-market enterprises in the last 2-3 years.

Kumar informed that Oracle supports over 85 public sector organisations in India, participating in modernisation projects including UPI, DIKSHA, and Digital Sansad. Partnerships, such as the one with NSDC's Project Vidya to skill 500,000 youth and women in AI, cybersecurity, and cloud computing by 2028, demonstrate its commitment to India.

The company's private sector clientele includes Berger Paints, SRF Limited, AU Small Finance, and numerous digital-native startups in FinTech, EdTech, GCCs, and IT/ITeS, serving clients like Capri Global and PhonePe.

To meet increasing demand, Oracle has significantly expanded its cloud region capacity in Mumbai and Hyderabad. As per recent reports, Oracle India has consistently been recognised as a top-performing region within Oracle Japan and Asia Pacific. Growth spans cloud technology, cloud applications, and hybrid systems.

Kumar noted that the cloud business, particularly Oracle Cloud Infrastructure (OCI), has experienced exceptional traction with over 50% growth across Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Database Services. AI-driven deals constituted about 30% of H1 (Oracle's financial year starts on June 1 and ends on May 31 of the following year) bookings in India.

He added that India’s BFSI sector leads hybrid Cloud adoption with a remarkable 162% growth in Oracle Fusion Cloud applications in H1. Fusion Cloud achieved 51% YoY growth in Q2 alone, and 17% in H1, with all core applications growing by over 100%. Besides BFSI, Professional Services/IT and ITeS contribute significantly, with the two sectors accounting for over 60% of H1 revenue. The public sector has also become a strong growth driver.

Understandably, AI is a dominant theme, with enterprises recognising its transformative potential. Oracle offers over 100 AI use cases integrated into its products and has incorporated 50 generative AI agents into its Fusion Cloud SaaS applications to automate business processes. In partnership with Nvidia, Oracle also provides a substantial GPU infrastructure to enable enterprises to train and deploy AI models.

Kumar predicts that AI will be integral to every enterprise by 2025, helping in areas such as supply chain, customer experience, finance and human resources, thereby accelerating performance for adopters.