Swedish furniture giant Ikea’s Indian arm reported steady growth in FY25, with sales rising 6% year-on-year to Rs. 1,860.8 crore and operating earnings (EBITDA, excluding fixed costs) increasing by 12%. The company, which has been steadily expanding its footprint since entering the country in 2018, said it expects to turn profitable within the next two years.
In a statement issued on Tuesday, Ikea India said its long-term focus remains on affordability, accessibility, and sustainability, principles that have defined the brand’s global success.
Patrick Antoni, who took charge as Ikea India’s CEO in August 2025, said the company sees India as a key growth market in its global portfolio. “The home furnishing market in India is projected to reach $48 billion by 2030, growing at a CAGR of 8.7%. We see a long-term opportunity to contribute to this growth by making home furnishing more affordable and accessible for the many people,” Antoni said.
He added that Ikea’s expansion in India would be driven by continued investments in infrastructure, digital capabilities, and local sourcing. “As we continue to invest in our business and people, our goal is to turn profitable within the next two years, while building a solid foundation for a better everyday life for the many Indians,” Antoni said.
Expanding Reach Through Hybrid Growth
Ikea’s Indian operations have gradually evolved from large-format destination stores to a multi-channel model that combines physical outlets with strong online presence. The company launched its first store in Hyderabad in 2018, followed by Mumbai, Bengaluru, and Navi Mumbai, before entering Delhi-NCR through online channels and smaller “city stores.”
Murali Iyer, chief financial officer at Ikea India, said the strategy to strengthen its omnichannel presence is paying off. “Online sales grew 34% year-on-year, supported by our entry into North India and new format stores in Delhi and Bangalore. Together, these initiatives helped Ikea reach nearly 110 million customers across channels in FY25,” he said.
The company’s diverse portfolio also reflects changing consumer behaviour. Furniture continues to lead sales across India, though Ikea for Business, targeting offices, start-ups, and hospitality firms, accounted for 19% of total revenue, growing 20% year-on-year. The brand’s in-store food segment contributed around 10% to overall sales, continuing to draw footfalls with its popular cafes and Swedish delicacies.
Looking Ahead
Despite operating in a competitive market dominated by local and online players, Ikea’s steady growth points to India’s expanding appetite for organized home furnishings. With rising urban incomes and a growing preference for modular, sustainable designs, the company is betting on India’s young population and evolving lifestyles.
Ikea’s focus in the coming years will remain on deepening market penetration, strengthening its supply chain, and improving cost efficiency through local manufacturing and sourcing. As it expands across metros and Tier 2 cities, the company’s long-term goal remains clear: build a profitable, scalable business that can sustain India’s rising demand for affordable and stylish home solutions.
