IKEA India FY25: Revenue Slips as Strategic Investments Deepen Losses

As per PTI report, IKEA India reported a total loss of ₹1,325.2 crore for the financial year ended March 31, 2025. This was higher than the ₹1,299.4 crore loss recorded in FY24, according to regulatory filings.  

Revenue from operations declined 3.33% to ₹1,749.5 crore, compared with ₹1,809.8 crore in the previous year. Total income, including other income, stood at ₹1,780.1 crore, down 3.9% year-on-year. 

Borrowings Increase 

The company’s borrowings rose during the year as it continued to invest in its India operations. Total borrowings reached ₹8,335.2 crore in FY25, up from ₹7,060 crore in FY24 and ₹5,709.9 crore in FY23.  

IKEA is expanding through a mix of large-format stores, smaller city outlets and online channels. Ingka Holding Overseas BV, Netherlands, held 99.9% equity in the Indian subsidiary as of March 31, 2024. 

Advertising and Promotion Costs 

Spending on advertising and sales promotion increased during the financial year. The company spent ₹223.9 crore on these activities in FY25, compared with ₹196.3 crore in FY24.  

This represents a year-on-year rise of 14.06%. The higher spending came as the company entered new markets and expanded services. 

Store Network and Investment Plans 

IKEA currently operates three large-format stores in Hyderabad, Navi Mumbai and Bengaluru. It also runs two city-format outlets in Worli and New Delhi. The company plans to invest about ₹7,000 crore to enter the National Capital Region with stores in Gurugram and Noida.  

This forms part of the ₹10,500 crore foreign direct investment plan approved by the government in 2013. 

Read More: IKEA Steps Up India Expansion with Over ₹20,000 Crore Investment Planned! 

Conclusion 

The FY25 numbers show a modest decline in revenue alongside a slightly higher loss. Borrowings and promotional spending increased as the company continued to invest in new stores and online operations across India.  

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