IKEA eyes India profitability in two years on revenue, footprint expansion

IKEA India has seen revenue growth for 2024-25 on the back of strong demand for affordable furniture, robust online sales and steady growth in its business-to-business segment.

Tracking parent Ingka Group’s September-August fiscal year, the Swedish furniture maker reported a 6% year-on-year increase in sales. ₹1,860.8 crore, a company statement on Tuesday said.

The company, which did not disclose net profit or loss figures for this financial year, reported a 15 percent increase in loss compared to the same period last year. ₹1,303 crore and 5.12% increase in revenue ₹1,852.7 crore in 2023-24, according to data from business intelligence platform Tofler.

Patrik Antoni, who took over as managing director of IKEA India in August 2025, said the company aims to turn a profit in the next two years while continuing to grow sustainably. “The home furnishings market in India is expected to reach $48 billion by 2030, growing at a compound annual growth rate of 8.7%. We see a long-term opportunity to contribute to this growth by making home furnishings more affordable, accessible and sustainable,” said Antoni.

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IKEA India’s business is divided into three main segments: retail (home furnishings and furniture), food and restaurants and B2B (IKEA for Business).

Growth in 2024-25 was driven by a 34% annual increase in online sales. The B2B segment grew 20%, contributing 19% of total revenue, while the food division, accounting for approximately 10% of total sales, remained a key in-store attraction, serving 2.2 million meals at its restaurants.

“We increased our EBITDA (excluding fixed costs) by 12%. Our online sales share increased by 34% and our entry into the Nordic market through online and new format stores in Delhi and Bengaluru has been truly rewarding. IKEA India welcomed close to 110 million customers across our channels in 2024-25,” Murali Iyer, CFO of IKEA India, said in a statement. Ebitda refers to earnings before interest, taxes, depreciation and amortization.

Furniture remains the retailer’s best-selling category, reflecting growing demand for affordable home solutions in the country. The company offers more than 50 furniture products. ₹More than 1,000 and 750 household items ₹The 200 appeals to budget-conscious urban consumers.

During the year, IKEA expanded its footprint in the country by entering the North Indian market with a city store in West Delhi and increasing its operations in Bengaluru with a new Plan and Order Point that allows customers to design and plan their interiors with professional help.

With large format stores in Hyderabad, Navi Mumbai and Bengaluru, the company now reaches over 90% of the country’s urban homes through its omni-channel presence.

Mint It reported on September 14 that IKEA plans to accelerate its expansion in India by opening three to four new small-format urban stores in the next 10 months, marking a shift from large-format outlets to compact urban showrooms. The retailer plans to triple or quadruple its workforce from approximately 3,000 employees as part of this growth initiative.

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Mint The report also stated that IKEA has exhausted its prime. ₹It invested ₹10,500 crore and was preparing to announce a larger second tranche for the country soon. The company’s real estate arm, Ingka Centres, is developing two major IKEA-affiliated malls in Noida and Gurugram as part of its plan to strengthen the retail ecosystem.

The retailer is also closely monitoring the progress of the India-EU Free Trade Agreement (FTA). The company currently exports goods worth around €300 million a year from India to the European Union, and Antoni said the FTA could potentially make local manufacturing more competitive by lowering tariffs on raw materials such as wood and machinery.

Globally, Ingka Group reported revenues of €41.5 billion for 2024-25, down 0.9% on the previous year, as it adopted price cuts to maintain affordability amid economic uncertainty. Despite the decline in turnover, the group’s net profit rose to €1.4 billion from €0.8 billion in 2023-24.

Ingka Group has three main business divisions: IKEA Retail, Ingka Centers and Ingka Investments. IKEA Retail operates in 31 markets and is partnering with Inter IKEA Systems to develop and innovate the company’s global retail strategy.

Ingka Centers manages shopping destinations in 14 markets, working with more than 2,600 brands across 37 meeting points, and has announced the development of Lykli Noida, a major mixed-use retail and entertainment hub in India.

Ingka Investments, the group’s investment arm, manages six portfolios covering real estate, renewable energy, woodland, business acquisitions and ventures, cyclical investments and financial markets.