Dream11’s Domicile and Director Benefits Lead to Rs 479 Cr Loss in FY25
•February 9, 2026
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Companies Mentioned
Why It Matters
The results highlight the financial strain on India’s fantasy‑gaming sector amid tightening regulation, signalling potential volatility for investors and partners.
Key Takeaways
- •FY25 loss of Rs 479 crore after Rs 575 crore tax hit
- •Operating revenue fell 15% to Rs 6,759 crore
- •Director benefits cost Rs 778 crore, inflating expenses
- •Advertising expenses remain 58% of total spend
- •Company pivots to free‑to‑play and wealth‑tech offerings
Pulse Analysis
Dream Sports’ FY25 results underscore how a single tax event and hefty director compensation can overturn a previously profitable business model. The Rs 575 crore tax liability stemmed from the cross‑border merger that shifted Dream11’s domicile from the United States to India, while Rs 778 crore in director benefits—largely ESOP‑related—inflated the employee‑benefits line. Combined with a 15% drop in operating revenue, these items drove the company into a Rs 479 crore net loss, eroding EBITDA and ROCE margins into negative territory and raising questions about cash‑flow sustainability.
The timing of the loss coincides with the Indian government’s impending blanket ban on real‑money gaming, a policy shift that threatens the core fantasy‑sports revenue stream. Anticipating regulatory headwinds, Dream11 has begun diversifying into a global sports‑entertainment platform, emphasizing creator‑led watch‑alongs, fan interaction, and free‑to‑play formats. Simultaneously, the launch of Dream Money signals an entry into wealth‑tech, aiming to leverage its large user base for cross‑selling financial services. This strategic pivot reflects a broader industry trend of hedging against gambling‑related restrictions by expanding into adjacent digital experiences.
From a financial perspective, advertising and promotional spend now accounts for 58% of total expenses, while IT and content costs remain sizable. Despite a modest cash balance of Rs 1,801 crore, the firm’s current assets of Rs 3,729 crore may be insufficient to absorb prolonged revenue compression. Investors will watch how effectively Dream11 can monetize its new entertainment and fintech offerings, and whether cost discipline can restore profitability before the regulatory ban fully materializes. The company’s ability to transition without eroding its user base will be critical to its long‑term valuation.
Dream11’s domicile and director benefits lead to Rs 479 Cr loss in FY25
Dream Sports, the parent of Dream11, saw its operating scale decline 15% in FY25 and reported a net loss of Rs 479 crore for the year ended March 2025. This appears to be a rare loss for the Mumbai-based company, which was steered by a one-time tax cost of Rs 575 crore (tax) arising from the cross-border merger of Dream Sports INC and India’s Sporta Technologies, along with Rs 771 crore cost, which were booked against directors' benefits.
The financial setback came ahead of the Indian government’s move in August 2025 to introduce a blanket ban on real-money gaming under the Promotion and Regulation of Online Gaming Bill, 2025.
Dream11’s revenue from operations declined 15% year-on-year to Rs 6,759 crore in FY25 from Rs 7,934 crore in FY24, its consolidated financial statements sourced from the Registrar of Companies (RoC) show.
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Platform fees received from users for participating in contests, also known as Gross Gaming Revenue (GGR), remained the primary source of revenue in FY25 and stood at Rs 10,284 crore. After adjusting for promotional credits and revenue of Rs 259 crore from the sale of services and goods, the company’s net operating revenue stood at Rs 6,759 crore.
The company also earned Rs 601 crore from non-operating sources, which includes interest on fixed deposits and investments, which pushed Dream11’s total income to Rs 7,374 crore in the last fiscal year.
Following the ban on real money gaming, Dream Sports, the parent of Dream11, has shifted from fantasy gaming to a global sports entertainment platform, with creator led watch alongs, fan interactions, banter streams, and free to play fantasy formats. The company has also entered the wealth tech space with its new app, Dream Money.
On the cost side, advertising and promotional expenses remained the largest cost centre, which accounted for 58% of total expenses, or Rs 3,913 crore, in the last fiscal. The company also served as the Indian cricket team’s jersey sponsor for three years, which ended last year.
Employee benefit expenses emerged as another major cost, it rose over 62% to Rs 1,673 crore in FY25 from Rs 1,030 crore in FY24. Notably, the company recorded Rs 778 crore as benefits to its directors, which are likely to be the ESOP-related cost. If we exclude these expenses, the employee benefits head seemed flat in both years.
Information technology expenses accounted for Rs 798 crore while content, processing, and other miscellaneous overheads pushed the firm’s overall expenditure up by 9% to Rs 7,123 crore in FY25 from Rs 6,562 crore in FY24.
Dream11 incurred a one time tax expense of Rs 575 crore, linked to the merger of Dream Sports Inc. with Sporta Technologies Private Limited during its shift in domicile from the US to India. The company booked this as an exceptional item.
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The decline in operating scale, coupled with one-time tax expense and director benefits, drove the firm into losses with Rs 479 crore loss in FY25 from Rs 1,295 crore profit in FY24. Its ROCE and EBITDA margin worsened to -6.51% and -4.29%, respectively. It also reported EBITDA loss of Rs 290 crore during the year. On a unit level, it spent Rs 1.05 to earn a rupee in FY25.
As of March 2025, Dream11’s parent had a total current assets of Rs 3,729 crore which includes Rs 1,801 crore of cash and bank balances.
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