Global sports retailer Decathlon’s Indian arm reported weak financial performance as Decathlon India posts ₹65 crore loss in FY25, according to its latest regulatory filings. The loss highlights the pressure from rising operating costs, store expansion expenses, and intense competition in India’s retail market.
Despite strong brand recognition and growing sports participation, profitability remains a challenge.
Decathlon India Reports ₹65 Crore Loss in FY25
For the financial year 2024–25, Decathlon India recorded a net loss of ₹65 crore, widening from the previous year. The company continued to invest heavily in physical stores, supply chains, and localisation, which impacted margins.
The loss comes even as revenues showed steady growth, reflecting the classic retail trade-off between scale and profitability.
Why Decathlon India Remains in Loss
Several factors contributed to why Decathlon India posts ₹65 crore loss in FY25:
- High rental and store operating costs
- Expansion into new cities and formats
- Rising logistics and supply-chain expenses
- Inflation-led increase in staffing costs
- Competitive pricing strategy to drive volumes
Decathlon is known for keeping prices low, which limits near-term profitability.
Expansion Strategy Impacts Margins
Decathlon has been expanding aggressively across India with large-format stores and omni-channel capabilities. While this strategy helps build brand presence and long-term scale, it requires significant upfront investment.
The company continues to prioritise market penetration over short-term profits.
India Remains a Strategic Market for Decathlon
Despite losses, India remains a key growth market for Decathlon due to:
- Rising health and fitness awareness
- Growing middle-class consumption
- Increasing interest in organised sports
- Long-term potential of sports retail
The company sees India as a multi-decade opportunity rather than a quick-profit market.
Competition in Sports and Lifestyle Retail
Decathlon faces competition from:
- Domestic sportswear brands
- Global apparel and footwear companies
- Online-first fitness and sports platforms
- E-commerce marketplaces offering discounts
This competitive environment keeps pricing pressure high across categories.
Cost Control and Efficiency Measures
Industry observers say Decathlon may focus more on:
- Optimising store footprint
- Improving inventory efficiency
- Strengthening private-label margins
- Scaling digital and click-and-collect models
- Reducing logistics and sourcing costs
Such measures could help narrow losses in the coming years.
Industry Context
India’s retail sector has seen margin pressure due to higher operating costs and cautious consumer spending. Even large global brands have struggled to achieve consistent profitability while expanding footprint.
Losses during expansion phases are common in large-format retail.
What This Means for the Future
The fact that Decathlon India posts ₹65 crore loss in FY25 does not necessarily signal long-term weakness. Analysts believe profitability could improve once store expansion slows and existing locations mature.
Decathlon’s vertically integrated model gives it room to improve margins over time.
Conclusion
The development that Decathlon India posts ₹65 crore loss in FY25 reflects the challenges of scaling physical retail in India’s competitive market. While losses persist, the company continues to invest in growth, infrastructure, and brand building.
If execution improves and costs stabilise, Decathlon could move closer to profitability in the medium term as India’s sports retail market expands.
