Krutrim, the artificial intelligence venture started by Bhavish Aggarwal, has achieved its first annual net profit for the 2026 fiscal year following a major move into domestic cloud infrastructure. The Bengaluru-based company reported revenues of approximately ₹300 crore, representing a three fold increase compared to the previous year. This financial shift comes as Krutrim moves away from its initial broad AI goals to become a specialized provider of full-stack AI cloud services for Indian enterprises.
Key Highlights
- Krutrim reached a profit after tax margin of over 10% in FY26.
- Revenue grew 3X year-on-year to reach the ₹300 crore mark.
- The company paused its chip design projects to focus resources on cloud infrastructure.
- More than 25 large enterprise clients now use Krutrim’s GPU compute capacity.
- The business is now self-sustaining and does not require immediate external funding.
The shift to domestic infrastructure
Krutrim’s profits didn’t happen by accident. In 2025, the company decided to stop designing its own AI chips. Instead, it put that money into building a cloud stack here in India. Now, Indian companies can run big AI workloads on local servers. No need to depend on global providers.
By building the software and hardware layers in-house, the company has managed to lower its operating costs while improving performance for local businesses. This vertical approach means Krutrim handles everything from the data center management to the AI software tools that developers use to build applications.
Growing market adoption
While Krutrim originally supported the needs of the Ola Group, it has now expanded its reach to external sectors. The company currently serves over 25 major organizations, including telecom operators, banks, and healthcare providers. These clients use Krutrim’s GPU (Graphics Processing Unit) capacity, which is essential for training and running complex AI models.
Most of the available compute power on the platform is already reserved by these external clients. This demand suggests that Indian enterprises are looking for “sovereign” cloud options where data stays within national borders and the service is optimized for the local market.
Financial independence
One of the most notable aspects of the FY26 report is Krutrim’s claim of financial self-sufficiency. The company stated it no longer needs to raise money from outside investors or its founder to keep operations running. The shift to a disciplined operating model has allowed it to fund its own growth through the revenue generated from its cloud contracts.
A company spokesperson mentioned that reaching this profit milestone validates the decision to build a platform specifically for Indian engineers and businesses. The current momentum shows that the domestic market has a high appetite for high-performance computing that is locally managed and operated.
Frequently Asked Questions
Q. What is Krutrim’s main business now?
A. Krutrim functions as an AI Cloud Services provider. It offers high-performance computing power and software tools that allow other companies to build and run their own artificial intelligence applications.
Q. Is Krutrim still making AI chips?
A. No. As part of a business realignment in late 2025, Krutrim paused its chip design initiatives. The company decided to focus its talent and money on scaling its cloud service infrastructure instead.
Q. How much money did Krutrim make in FY26?
A. The company reported a revenue of roughly ₹300 crore for the 2026 fiscal year. It also recorded its first net profit, with a profit after tax margin exceeding 10%.
Q. Who are Krutrim’s customers?
A. The company serves more than 25 large enterprises. This includes companies in the telecom, finance, healthcare, and logistics sectors, as well as consumer internet platforms and deep-tech startups.
Q. Is Krutrim still part of Ola?
A. Krutrim is a separate entity founded by Bhavish Aggarwal (who also founded Ola). While it provides services to the Ola Group, the majority of its cloud capacity is now used by external enterprise customers.
