Decathlon India, the Indian arm of French sporting goods retailer Decathlon, reported a net loss of Rs 65 crore in FY25, marking a sharp reversal from its Rs 197 crore profit in FY24. The swing into losses came as operating expenses grew significantly faster than revenue during the year ended March 2025.
According to the company’s financial filings sourced from the Registrar of Companies (RoC), revenue from operations increased 3% year-on-year to Rs 4,133 crore in FY25, compared to Rs 4,008 crore in the previous fiscal. Including other income of Rs 49 crore, Decathlon India’s total income stood at Rs 4,182 crore, up marginally from Rs 4,067 crore in FY24.
Costs Surge Across Key Heads
On the expenditure side, cost of materials remained the largest expense, accounting for nearly 62% of total costs. This expense rose 8% to Rs 2,644 crore, reflecting higher sourcing and procurement costs for sporting goods.
Employee benefit expenses increased 11% year-on-year to Rs 363 crore, while depreciation costs surged 74.3% to Rs 305 crore, indicating increased capital expenditure and asset expansion. Other operating expenses, including store operations and overheads, climbed 13.7% to Rs 952.5 crore.
Overall, total expenses rose 12.3% to Rs 4,264.5 crore in FY25, significantly outpacing revenue growth and pushing the company into losses.
Margins Under Pressure, EBITDA Positive
Despite the net loss, Decathlon India reported a positive EBITDA of Rs 174 crore during the year. However, profitability ratios remained under pressure, with EBITDA margin at 4.20% and ROCE at -5.73%. On a unit level, the company spent Rs 1.03 to earn every rupee of operating revenue in FY25.
Balance Sheet Snapshot
On the balance sheet front, current assets increased to Rs 1,400 crore, up from Rs 1,247 crore a year earlier. However, cash and bank balances declined sharply to Rs 73 crore, compared to Rs 320 crore at the end of FY24, highlighting tighter liquidity during the fiscal.
The FY25 performance underscores the challenges facing large format retailers amid rising costs, even as demand growth remains modest.
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