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IKEA India reported a significant widening of its total loss to INR 1,325.2 crore in FY25, with revenue from operations falling by 3.33 per cent to INR 1,749.50 crore, according to company filings. Total income, including other sources, declined 3.9 per cent to INR 1,780.10 crore. Advertising and sales promotion expenses rose 14.06 per cent to INR 223.9 crore. The company's total borrowing also increased to INR 8,335.20 crore as it invests in expanding its network through an omnichannel approach, including two new stores in Gurugram and Noida, while FDI approvals near their earlier targets.
IKEA India, the Indian arm of the Swedish furniture and home furnishing retailer, saw its total losses widen to INR 1,325.2 crore in FY25. Revenue from operations declined by 3.33 per cent to INR 1,749.50 crore, reflecting a slowdown compared to the previous financial year. Including other sources of income, the company's total revenue fell 3.9 per cent to INR 1,780.10 crore for the year ended March 31, 2025, based on financial data accessed through the business intelligence platform Tofler. Advertisement
In comparison, Ikea India Pvt Ltd had reported a net loss of INR 1,299.40 crore and revenue from operations of INR 1,809.80 crore in FY24. Despite declining revenues, the company increased its expenditure on advertising and sales promotion by 14.06 per cent to INR 223.9 crore, up from INR 196.3 crore a year earlier.
Ikea India's total borrowings also rose sharply to INR 8,335.20 crore in FY25 as the company continues to invest in expanding its presence through an omnichannel strategy. Borrowings were INR 7,060.00 crore in FY24 and INR 5,709.90 crore in FY23. As of March 31, 2024, Ingka Holding Overseas BV, Netherlands, held 99.9 per cent of Ikea India's equity shares.
Currently, Ikea operates three large-format stores in Hyderabad, Navi Mumbai, and Bengaluru, along with two city stores in Worli and New Delhi. The company is investing around INR 7,000 crore to establish a presence in the National Capital Region with two upcoming stores in Gurugram and Noida. These developments suggest that Ikea India is nearing its Foreign Direct Investment (FDI) limit set under the government's 2013 approval, which had permitted an FDI of INR 10,500 crore to establish 10 stores and associated infrastructure over a 10-year period.
Last month, during the launch of online sales in Tamil Nadu, Ikea India CEO Patrik Antoni indicated that the company plans to further amplify its investment in India. The move reflects Ikea's continued focus on expanding its retail footprint and enhancing accessibility to Indian consumers through both physical stores and digital channels.
Source PTI
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