Decathlon Records Net Loss in Fiscal Year 2025

Decathlon, the Indian division of the French sporting goods retailer, has announced a net loss of Rs 65 crore for the fiscal year concluding in March 2025. This loss contrasts sharply with the Rs 197 crore profit recorded in FY24. The decline is attributed to a significant rise in operating costs that outpaced revenue growth throughout the year.

Financial Performance Overview

For FY25, Decathlon’s operational revenue saw a growth of 3% year-on-year, reaching Rs 4,133 crore, up from Rs 4,008 crore in FY24, according to financial statements obtained from the Registrar of Companies (RoC). Including additional income of Rs 49 crore, the total income for the company was Rs 4,182 crore in FY25, an increase from Rs 4,067 crore in the previous year.

Cost Analysis

Examining expenditures, the cost of materials, which encompasses the sourcing and procurement of sporting goods, emerged as the most substantial expense, constituting 62% of overall costs. This expense increased by 8%, amounting to Rs 2,644 crore in FY25 compared to Rs 2,457 crore in FY24. Employee benefit costs rose by 11% to Rs 363 crore, while depreciation expenses saw a steep increase of 74.3%, reaching Rs 305 crore in the last fiscal year.

Additional Expenses and Overall Financial Impact

Other expenses, covering store operations and overheads, climbed by 13.7% year-on-year to Rs 952.5 crore. Consequently, the total expenses for the company surged by 12.3% to Rs 4,264.5 crore in FY25 from Rs 3,797 crore in FY24. As the company’s expenses exceeded revenue growth, it recorded a net loss of Rs 65 crore for FY25, contrasting with the profit of Rs 197 crore from FY24. Nonetheless, the company achieved a positive EBITDA of Rs 174 crore during the same period, with a ROCE and EBITDA margin of -5.73% and 4.20%, respectively.

Unit Cost Efficiency

In terms of unit economics, Decathlon spent Rs 1.03 to generate a rupee of operating revenue in FY25. On the balance sheet side, current assets increased to Rs 1,400 crore from Rs 1,247 crore, while cash and bank balances saw a significant decline to Rs 73 crore at the end of FY25, down from Rs 320 crore the previous year.