Decathlon Sports India has recorded a significant financial turnaround in FY24, posting a net profit of Rs 197 crore after reporting a loss of Rs 18.61 crore in FY23. The company also saw its revenue rise to Rs 4,008 crore in FY24, a 2.3% increase from Rs 3,920 crore in the previous year as per data accessed by Tofler. This marks a strong recovery for the sporting goods retailer, which had been grappling with losses despite consistent revenue growth.
Decathlon, a French multinational sporting goods retailer, is one of the largest sports retailers in the world. Founded in 1976, the company designs, manufactures, and sells a wide range of sports equipment and apparel across multiple categories. In India, Decathlon has established a strong presence with large-format stores and an extensive e-commerce platform, making sports accessible and affordable to millions. Known for its private-label brands catering to various sports, the company has positioned itself as a leader in the affordable sports retail segment.
In FY22, Decathlon India recorded a net profit of Rs 36 crore, but it swung to a loss in FY23 despite increasing its revenue from Rs 2,897.77 crore in FY22 to Rs 3,920 crore in FY23. This loss was largely due to a sharp increase in total expenditure, which exceeded revenue for the first time. The company reported an expenditure of Rs 3,974.81 crore in FY23, compared to Rs 2,892 crore in FY22. However, in FY24, Decathlon reversed its losses by managing expenses more efficiently while maintaining revenue growth.
What led to Decathlon’s profitability in FY24?
One of the primary reasons for Decathlon’s profitability in FY24 was better control over operating expenses. While the company had suffered from high operational costs in FY23, strategic cost-cutting and operational efficiencies helped it improve margins. Through strategic cost management across areas such as utilities, rent, maintenance, fuel, advertising, IT, logistics, franchise fees, and professional services, the company reduced its overall expenses by 4.5%, lowering them from Rs 3,975 crore in FY23 to Rs 3,797 crore in FY24.
Furthermore, Decathlon continued its upward revenue trajectory, surpassing the Rs 4,000 crore mark in FY24. The company’s dominance in the sports retail sector, supported by its extensive product range and affordable pricing, contributed to sustained sales growth.
In FY23, Decathlon had a high tax outflow, which significantly affected its bottom line. The company had reported a deferred tax credit of Rs 50.92 crore that year. In contrast, FY24 saw a more stable tax situation at Rs 11.70 crore, allowing the company to report profits. Decathlon’s revenue growth was driven by the continued expansion of its retail footprint and an increase in demand for sporting equipment. Its primary revenue-generating category remained ‘Other Sports Equipment,’ which contributed a significant portion of the Rs 3,985 crore turnover in FY24. According to media reports, The company operated efficiently, spending Rs 0.95 to generate every rupee of revenue, while its ROCE improved to 17.79% and EBITDA margin reached 14.49%.
Sixteen years in, Decathlon has played the long game in India, mastering the art of blending big-box retail with digital smarts. In a market where growth can hit a ceiling faster than a sprinter at the finish line, the French giant has dared to colour outside the lines—flirting with third-party platforms to chase new customers. So far, it has stuck to its playbook, keeping the focus on sports and fitness gear. But as the game evolves, will Decathlon rewrite the rules? If history is any guide, the brand that taught India a new way to shop for sports might just be gearing up for its next big move. And this time, the Indian market might have a lesson or two of its own to teach.