Decathlon Sports India reported a net loss of ₹65.03 crore in March 2025, compared to a profit of ₹197.19 crore the prior year. Revenue from operations increased by 3.11% to ₹4,133.10 crore. Financial data pulled from business intelligence platform Tofler shows total income, including other income, rose 2.84% to ₹4,182.05 crore in FY25 from ₹4,067 crore a year earlier. The unlisted subsidiary of French sporting goods giant Decathlon SE, where the parent holds 99.99% stake, mainly trades sports apparel, equipment, and accessories. Advertising and promotional spends ticked up 1.78% to ₹89.05 crore from ₹87.49 crore, reflecting ongoing marketing push amid tougher market conditions.
Expenses Increase More Than Slim Increases in Revenue:
In FY25, Decathlon Sports India’s operating expenses surged 12.3% to ₹4,264.5 crore, dwarfing the weak top-line growth and consequently contributing to the deficit. The cost of materials utilized, which accounts for 62% of total expenses, increased by 8% to ₹2,644 crore from ₹2,457 crore. This increase is related to the sourcing and acquisition of athletic goods.
Employee benefit expenses climbed 11% to ₹363 crore, while depreciation costs exploded 74.3% to ₹305 crore, likely from heavy investments in stores and infrastructure. Other expenses, covering store operations and overheads, rose 13.7% to ₹952.5 crore. The company ended up spending ₹1.03 for every rupee of operating revenue, a stark efficiency hit. Despite the red ink, Decathlon reported positive EBITDA of ₹174 crore, with ROCE at -5.73% and EBITDA margin at 4.20%. Balance sheet shifts showed current assets up to ₹1,400 crore from ₹1,247 crore, but cash and bank balances plunged to ₹73 crore from ₹320 crore, signaling tighter liquidity amid expansion spends.
From FY24 Profit to FY25 Pressures:
FY24 had been a banner year with ₹197.19 crore net profit on ₹4,008.26 crore revenue, but FY25 flipped the script as costs raced ahead. The shift underscores challenges in India’s sports retail space, where post-pandemic fitness booms have cooled and competition heats up from local players and e-commerce giants.
Decathlon entered India in 1999 with production and kicked off retail in 2009, building a network of large-format stores focused on affordability and variety. The FY25 loss highlights margin squeezes from rising input costs, wage hikes, and depreciation on capex, even as sales volumes grew marginally. Analysts point to a broader slowdown in discretionary spending on sports gear, with consumers turning pickier amid economic headwinds. Decathlon’s model—big-box stores with own-brand products faces online rivals offering faster delivery and deeper discounts.
Global Giant Plans to Increase Sourcing from India:
Parent company Decathlon SE is still optimistic about India in spite of the domestic setback. It promised in July to increase sourcing from the nation from current levels to $3 billion by 2030, with a target of 15% of global volumes, up from 8%. Footwear, exercise gear, and technical textiles are among the focus areas.
The firm eyes near billion-dollar sales in India over the next five years, driven by retail expansion, broader product lines, and rising sports culture. India ranks as a “big priority” market, potentially cracking the top five globally soon. Decathlon plans to blend physical stores with digital channels to capture urban fitness trends and rural outreach. The sourcing push could offset retail losses by boosting manufacturing ties, creating jobs and stabilizing supply chains.
Executives are betting on a volume recovery in FY26 through store additions and category extensions, such as team sports and cycle apparel. The goal of cost controls is to reduce losses and restore profitability through efficiency improvements and local sourcing. For Decathlon’s India wager, the FY25 figures act as a reality check, striking a balance between ambitious growth goals and operational realities in a market that is price-sensitive.
