IKEA India reports 6% sales growth in FY25, targets profitability within two years

IKEA India has reported a 6% year-on-year rise in sales for FY25, with annual revenue touching ₹1,860.8 crore. The Swedish home furnishing retailer said its growth was driven by expanding reach across

cities and online channels, alongside continued demand for affordable home solutions.

The company said it aims to achieve profitability in the next two years as it continues to expand its physical and digital presence in India.

Murali Iyer, Chief Financial Officer of IKEA India, said the company also improved its EBITDA (excluding fixed costs) by 12% during the financial year, which runs from September 2024 to August 2025, in line with IKEA’s global calendar.

Online sales grew 34% year-on-year, supported by the company’s entry into North India through e-commerce and new-format stores in Delhi and Bengaluru. IKEA said it served around 110 million customers across all channels in FY25.

“At IKEA, we see a long-term opportunity to contribute to this growth by making home furnishing more affordable, accessible, and sustainable for the many people. 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," Patrik Antoni, CEO of IKEA India, said in a statement.

According to industry estimates cited by IKEA, India’s home furnishing market is projected to reach USD 48 billion by 2030, growing at a compounded annual growth rate of 8.7%.

Furniture emerged as a major growth driver for IKEA in India in FY25. Iconic products like the BRIMNES Day Bed (up 131% vs FY24), BILLY Bookcase (up 153% vs FY24), and PAX Wardrobe (up 135% vs FY24) were among the top-selling products.

Everyday essentials also saw strong growth, with OFTAST plates (3.66 lakh units sold), bowls (3.07 lakh units sold), and VARIERA drawer mats (3.4 lakh units sold) being among the top sellers by volume.

Food accounted for just under 10% of the total business. Over 2.2 million food tickets were served in FY25, with close to 1 million visitors enjoying meals in IKEA restaurants across India. Adapting to local tastes, IKEA introduced regional favorites such as vada pav in Mumbai, bisibele bhath in Bengaluru, and biryani in Hyderabad, alongside seasonal and festive menus. IKEA also said that about 50% of its food range is priced under ₹100. The B2B business contributed 19% of total sales, growing 20% year-on-year.

IKEA currently has flagship stores in Hyderabad, Mumbai, Bengaluru, and Delhi, apart from city stores in Mumbai. Most recently, the company leased a 37,259-square-foot ground-floor retail unit in Pune at Phoenix Marketcity.

Also Read: Thermax Q2 Results: Profit, revenue decline on cost overruns, weak infra margins