Revenue dips 3.33 per cent, borrowings rise as retailer steps up expansion and omnichannel investments in India
Ikea India, the local arm of the Swedish home furnishings giant, total loss widened to Rs 1,325.2 crore during the year, while revenue from operations slipped 3.33 per cent to Rs 1,749.50 crore. total income, which also includes other income, fell 3.9 per cent to Rs 1,780.10 crore for the financial year ended 31 March 2025, as per financial details sourced from business intelligence platform financial details sourced from business intelligence platform Tofler.
In the previous financial year (FY24), Ikea India had reported a net loss of Rs 1,299.40 crore on revenue from operations of Rs 1,809.80 crore.
Spending patterns showed a contrasting trend. Advertising and sales promotion expenses rose 14.06 per cent year-on-year to Rs 223.9 crore in FY25, compared with Rs 196.3 crore a year earlier. Borrowings also increased as the retailer continued to fund its expansion strategy. Total borrowings climbed to Rs 8,335.20 crore in FY25, up from Rs 7,060.00 crore in FY24 and Rs 5,709.90 crore in FY23. The company has been investing in an omnichannel network to strengthen both physical and digital reach.
As of 31 March 2024, Ingka Holding Overseas BV, Netherlands, held 99.9 per cent of Ikea India’s equity shares.
Ikea currently operates three large-format stores in Hyderabad, Navi Mumbai and Bengaluru, along with city stores in Worli and New Delhi. The company is also investing around Rs 7,000 crore to expand into the National Capital Region, with planned stores in Gurugram and Noida. With these developments, IKea’s FDI limit has almost reached the target.
In 2013, the government had approved an FDI proposal of Rs 10,500 crore by Ikea to set up 10 stores with allied infrastructure over 10 years. Last month, at the launch of its online sales in Tamil Nadu, Ikea India CEO Patrik Antoni said in Chennai that the company would amplify its investment in India.
