Dream Sports spent close to Rs 4,000 crore on advertising in FY25

The company has posted ₹479 crore loss in FY25

by e4m Staff
Published: Feb 9, 2026 5:24 PM | 2 min read

Dream Sports, which operated the fantasy sports platform Dream11, reported a net loss of ₹479 crore for the financial year ending March 2025. This marks a significant reversal from the ₹1,295 crore profit the company recorded in FY24.

The losses were primarily driven by exceptional charges, including a one-time tax charge of ₹575 crore related to the cross-border merger between Dream Sports Inc. and Sporta Technologies. Additionally, the company booked ₹771 crore as directors' benefits, which contributed to the bottom-line decline.

Operating revenue fell 15% year-on-year to ₹6,759 crore from ₹7,934 crore in FY24. Platform fees, or Gross Gaming Revenue, remained the primary revenue source at ₹10,284 crore, though promotional credits and adjustments reduced net operating revenue. Total income, including Rs 601 crore in non-operating income, reached ₹7,374 crore.

The financial downturn occurred just months before the Indian government implemented a comprehensive ban on real-money gaming through the Promotion and Regulation of Online Gaming Bill, 2025, in August.

Advertising and marketing spending continued to dominate the company's cost structure, accounting for 58% of total expenses at ₹3,913 crore in FY25. Employee expenses surged to ₹1,673 crore, partly due to ₹778 crore in director benefits, likely connected to ESOP costs. IT expenses reached ₹798 crore, while content, processing, and other overhead costs pushed total spending up 9% to ₹7,123 crore.

Dream11's return on capital employed dropped to -6.51%, and EBITDA margin slipped to -4.29%, with an EBITDA loss of ₹290 crore. The company spent ₹1.05 for every rupee earned in FY25. As of March 2025, Dream Sports held current assets of ₹3,729 crore, including ₹1,801 crore in cash and bank balances.

Following the real-money gaming ban, the company has pivoted toward a broader sports entertainment strategy, expanding into watch-alongs, banter streams, free-to-play formats, and wealthtech through its Dream Money app.