Nokia’s Q1 2025 performance in India stood out prominently in its global earnings report as the company posted a remarkable 75% year-over-year growth in net sales, reaching €464 million (approximately Rs 4,501.72 crore). This growth was primarily driven by substantial 4G and 5G deployment deals with telecom giants Bharti Airtel and Vodafone Idea (Vi).

This exceptional surge marks India as a bright spot in Nokia’s Asia-Pacific (APAC) performance, especially at a time when other regions, such as Greater China and the rest of APAC, witnessed a decline in sales.

India Emerges as a Strategic Growth Market

In its earnings report released on April 24, Nokia highlighted that India returned to strong growth, contrary to the downward trend seen across much of its other global markets. While the EMEA region (Europe, Middle East & Africa) posted a decline, India emerged as the growth engine, especially in its Fixed Wireless Access (FWA) and cloud and network services segments.

Nokia stated, "Fixed Networks saw strong growth, with a 9% increase in net sales (on a constant currency basis), largely due to significant expansion in India linked to FWA deployments."

This indicates a strategic shift and investment focus on India, especially as it leads the charge in next-generation network deployments.

CEO Justin Hotard Highlights Near-Term Risks

Justin Hotard, Nokia’s recently appointed President and CEO, addressed the challenges ahead. Speaking just three weeks into his new role, he warned of short-term disruptions due to ongoing tariff uncertainties, which may affect operating margins in the upcoming quarter.

“We will leverage the flexibility of our global manufacturing footprint to mitigate tariff impacts. Based on current assessments, we expect a €20–30 million (Rs 1,936–2,904 crore) hit to comparable operating profit in Q2,” said Hotard.

These estimates, he clarified, are not factored into the second half of 2025, given the limited visibility into tariff outcomes in global trade and manufacturing dynamics.

Global Performance Snapshot

Despite India’s standout growth, Nokia’s global Mobile Networks division only posted a modest 3% growth in net sales, touching €1.73 billion. The positive momentum in the Americas and APAC regions was partially offset by a dip in the EMEA market.

This reinforces the importance of India as a key growth pillar in Nokia’s global portfolio, particularly as many mature markets stabilize or witness reduced infrastructure investment.

Focus on Long-Term Operational Efficiency

Hotard underscored that Nokia’s strategic direction remains unchanged. The company is placing emphasis on capital allocation, targeting high-potential segments like FWA, cloud infrastructure, and network automation.

“Despite the unforeseen charge in Mobile Networks, we maintain our full-year guidance for comparable operating profit between €1.9 billion and €2.4 billion, with free cash flow projected at 50% to 80% of that range,” Hotard said.

This shows Nokia’s confidence in its business fundamentals, even as temporary headwinds cloud the near-term outlook.

Ericsson Faces Headwinds in India

Interestingly, Swedish telecom rival Ericsson reported a 28% year-on-year decline in Q1 revenue from India. Its revenue slipped to 3.85 billion Swedish crowns (Rs 3,360 crore), citing normalisation of investments post-completion of 5G rollouts by major players like Jio and Airtel.

Ericsson’s performance highlights the difference in regional strategy and market timing compared to Nokia. While Ericsson faces post-rollout saturation, Nokia seems to be capitalising on fresh deployment opportunities and service upgrades.

Market Outlook: India’s Telecom Sector Still a Growth Engine

The Indian telecom market continues to be one of the most dynamic and promising segments globally. With increasing demand for data services, rural coverage expansion, and digital transformation initiatives by the government, the need for robust 4G/5G infrastructure is far from over.

Nokia’s performance shows that telecom infrastructure players still have growth opportunities, especially through:

• Public-private partnerships

• 5G enterprise solutions

• Private network setups

• Fixed Wireless solutions in underserved areas

Conclusion: India Becomes Central to Nokia’s Growth Playbook

Nokia’s 75% Q1 2025 growth in India is not just a statistical high point—it reflects the company’s strategic realignment in response to global demand shifts. The Indian market has moved from being a cost-sensitive geography to a high-value growth destination, especially in telecom infrastructure.

With a new CEO at the helm, and a clear long-term focus on technology innovation, Nokia seems poised to deepen its roots in India, potentially setting the stage for more collaborations, tech investments, and network innovation in the quarters to come.

The Upcoming IPOs in this week and coming weeks are Ather Energy.

The Current active IPO are Tankup Engineers.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.