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

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

The Swedish furniture maker, which follows its parent Ingka Group’s September-August fiscal year, reported a 6% year-on-year rise in sales to ₹1,860.8 crore, said a company statement on Tuesday.

The company, which did not disclose its net profit or loss figures for the current fiscal year, had reported a 15% year-on-year rise in loss to ₹1,303 crore and a 5.12% increase in revenue to ₹1,852.7 crore in 2023-24, according to data from business intelligence platform Tofler.

Patrik Antoni, who took over as chief executive of IKEA India in August 2025, said the company aims to achieve profitability within the next two years while continuing to expand sustainably. “The home furnishing market in India is projected 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 furnishing more affordable, accessible, and sustainable,” Antoni said.

India business

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

Growth in 2024-25 was driven by a 34% on-year surge in online sales. The B2B segment expanded 20%, contributing 19% of total revenue, while the food division, accounting for about 10% of overall sales, remained a key in-store draw, serving 2.2 million meals across its restaurants.

“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 Bengaluru has been truly rewarding. IKEA India welcomed close to 110 million customers across our channels in 2024-25,” said IKEA India's chief financial officer, Murali Iyer, in the statement. Ebitda stands for earnings before interest, taxes, depreciation, and amortization.

Furniture remains the retailer's top-selling category, reflecting growing demand for affordable home solutions in the country. The company offers over 50 furniture items under ₹1,000 and more than 750 home furnishings under ₹200, attracting 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, which enables customers to design and plan their interiors with professional assistance.

Together with its large-format stores in Hyderabad, Navi Mumbai, and Bengaluru, the company now reaches over 90% of the country’s urban households through its omnichannel presence.

Mint reported on 14 September that IKEA plans to accelerate its India expansion by opening three to four new small-format city stores over 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.

India expansion

The Mint report also said IKEA had exhausted its initial ₹10,500 crore investment and was preparing to announce a larger second tranche soon for the country. The company’s real estate arm, Ingka Centres, is developing two large IKEA-anchored shopping centres in Noida and Gurugram, as part of its plan to strengthen its retail ecosystem.

The retailer is also closely monitoring the progress of the India-EU Free Trade Agreement (FTA). It currently exports nearly €300 million worth of goods annually from India to the European Union, and Antoni said the FTA could lower tariffs on raw materials such as wood and machinery, potentially making local production more competitive.

Globally, the Ingka Group reported revenue of €41.5 billion for 2024-25, a 0.9% decline from the previous year, as it absorbed price cuts to maintain affordability amid economic uncertainty. Despite the top-line decline, 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 Centres, and Ingka Investments. IKEA Retail operates across 31 markets and partners with Inter IKEA Systems to develop and innovate the company’s global retail strategy.

Ingka Centres manages shopping destinations in 14 markets, working with more than 2,600 brands across 37 meeting places, and has announced the development of Lykli Noida, a large mixed-use retail and leisure centre in India.

Ingka Investments, the group’s investment arm, oversees six portfolios spanning real estate, renewable energy, forestland, business acquisitions and ventures, circular investments, and financial markets.