IKEA is aiming for profitability in India within the next two years, driven by increasing revenue and expansion of its footprint. The Swedish furniture giant's Indian arm reported a 6% year-on-year increase in sales, reaching ₹1,860.8 crore for FY25. IKEA India's earnings before interest, taxes, depreciation, and amortization (EBITDA), excluding fixed costs, grew by 12% year-on-year.
Patrik Antoni, who assumed the role of CEO of IKEA India in August 2025, stated that the company intends to achieve profitability in the next two years through sustainable expansion. Antoni noted the potential of the home furnishing market in India, which is projected to reach $48 billion by 2030, with an anticipated compound annual growth rate (CAGR) of 8.7%. IKEA aims to contribute to this growth by offering affordable, accessible, and sustainable home furnishing solutions.
IKEA India's growth in FY25 was supported by a 34% surge in online sales, along with the expansion of its business-to-business (B2B) segment and the consistent performance of its food division. The B2B segment, known as IKEA for Business, grew by 20% and contributed 19% of the company's total revenue. The food division accounted for approximately 10% of overall sales and served as a significant draw for in-store customers, with 2.2 million meals served across its restaurants.
Murali Iyer, Chief Financial Officer of IKEA India, noted that the company's entry into the North market through online channels and new store formats in Delhi and Bangalore has been rewarding. In FY25, IKEA India served approximately 110 million customers across its various channels.
IKEA is expanding across digital and physical platforms, now reaching over 90% of urban households in India. In FY25, the brand entered North India with online deliveries, opened a city store in West Delhi, and strengthened its presence in Bengaluru with an additional Plan & Order Point.
While IKEA India has experienced consistent revenue growth, it has also faced losses. In 2023-24, the company reported a 15% year-on-year increase in loss, amounting to ₹1,303 crore, alongside a 5.12% rise in revenue to ₹1,852.7 crore. IKEA has not disclosed its net profit or loss figures for the current fiscal year.
Popular products during the past year included the BRIMNES day bed (up 131% YoY), the BILLY bookcase (up 153% YoY) and the PAX wardrobe (up 135% YoY). There was also high demand for daily use items like OFTAST plates (3.66 lakh units), bowls (3.07 lakh units) and VARIERA drawer mats (3.4 lakh units).
