Decathlon India Returns to Profit as Revenue Hits Rs 4,478 Crore

Decathlon India posted revenue of Rs 4,478 crore (US $471.8 million) in FY26, up 8.35% year-on-year from Rs 4,133 crore (US $435.5 million) in FY25. The Indian arm of the French sporting goods retailer swung from a net loss of Rs 65 crore (US $6.8 million) to a net profit of Rs 63 crore (US $6.6 million), according to its filings.

The turnaround came despite total expenditure rising 4% to Rs 4,435 crore (US $467.3 million) from Rs 4,264 crore (US $449.3 million) the prior year. Procurement of materials and sporting goods remained the largest cost block, taking nearly 64% of total spend — a figure sourcing teams will read as the key lever behind the margin recovery.

Other income of Rs 39 crore (US $4.1 million) lifted total income to Rs 4,517 crore (US $475.9 million) in FY26.

What is driving the cost base?

Materials procurement cost Rs 2,840 crore (US $299.2 million) in FY26, up 7.4% from Rs 2,644 crore (US $278.6 million) in FY25. That increase ran below the pace of revenue growth, easing pressure on gross margins.

Employee benefit expenses rose faster, climbing 12% to Rs 407 crore (US $42.9 million). Other expenses — including rent, franchisee fees, freight, credit card commissions and IT support charges — also grew.

The unit economics nonetheless improved. Decathlon India spent Rs 0.99 for every rupee of operating revenue in FY26, against a cost base that exceeded revenue in the loss-making prior year.

How do the margins and returns stack up?

The company recorded EBITDA of Rs 424 crore (US $44.7 million), a 9% EBITDA margin. Return on capital employed stood at 7.6%. Total current assets reached Rs 1,686 crore (US $177.6 million) at the end of FY26.

For a vertically integrated retailer that manufactures a significant share of what it sells in India, the 9% EBITDA margin marks the profitability benchmark competitors will measure against. The ROCE of 7.6% remains modest against retail cost of capital.

Revenue has held at around the Rs 4,000-crore level for the past few years, making FY26's growth notable rather than routine.

What comes next for the store network?

Decathlon entered India in 2009 and now operates 132 stores nationwide. It targets 200 stores by 2030, a 52% expansion of the fleet that implies sustained capital outlay on fit-outs and inventory across Indian markets.

The retailer sells sporting goods and apparel across categories including clothing, footwear, trekking gear, fitness equipment and accessories for multiple sports.

Beyond retail, the company is exploring opportunities to expand its European business and increase exports of products manufactured in India — a move that would deepen its use of the country as a production base, not just a consumer market.

The FY26 results, combining renewed profit with cost growth held below revenue growth, position Decathlon India to fund its 2030 store target while it weighs export-led manufacturing expansion.