Swedish furniture giant IKEA aims to turn its India operations profitable in two years on the back of improving operating margins and steady growth in sales. In FY25 (September 2024-August 2025, followed by IKEA globally as the financial year), IKEA’s India sales grew by 6%, reaching an annual revenue of Rs 1,860 crore.
“FY25 was another year of solid and meaningful growth for IKEA India with sales up by 6%, reaching an annual revenue of INR 18,608 million. We improved our EBITDA (excluding fixed costs) by 12%. Our share of online sales grew by 34%, and our entry into the North market through online, and new format stores across Delhi and Bangalore, has been truly rewarding,” said Murali Iyer, Chief Financial Officer, IKEA India.
IKEA is currently present across four markets in India with three large-format stores in Hyderabad, Navi Mumbai, and Bengaluru, and two city stores in Worli and West Delhi. It is likely to have two full-size stores in Delhi-NCR, one in Gurugram in 2026 and one in Noida in 2028.
Earlier this year, the brand entered North India with online deliveries and deepened its presence in Bengaluru with a Plan and Order Point. IKEA is planning a new investment phase in India after exhausting its initial Rs 10,500 crore commitment, with a focus on new large-format stores in Chennai and Pune and smaller stores in other cities.
“The home furnishing market in India is projected to reach USD 48 billion by 2030, growing at a CAGR of 8.7%, and we are truly inspired by this potential. At IKEA, we see a long-term opportunity to contribute to this growth by making home furnishing more affordable, accessible, and sustainable for the many people. As we continue to invest in our business and people, our goal is to turn profitable within the next two years, while building a solid foundation for a better everyday life for the many Indians,” said Patrik Antoni, CEO, IKEA India.
Furniture led the way for IKEA in FY25. Products like the BRIMNES Day Bed (up 131% vs FY24), BILLY Bookcase (up 153% vs FY24), and PAX Wardrobe (up 135% vs FY24) were among the top-selling furniture families. Everyday essentials also saw strong growth -- OFTAST plates (3.66 lac units sold) and bowls (3.07 lac units sold) and VARIERA drawer mats (3.4 lac units sold) were among the top sellers by volume.
IKEA for Business contributed 19% to the total sales, growing 20% year-on-year, while food continued to be both a strong visitation and revenue driver at 10%.
At present, IKEA offers over 6,500 home furnishing products in India, including more than 50 small furniture items under Rs 1,000, over 750 home furnishing and décor articles under Rs 200, and around 70 food items under Rs 200.