IKEA India demonstrated robust financial performance in fiscal year 2024-25, driven by strong demand for affordable furniture, a significant surge in online sales, and steady growth within its business-to-business (B2B) segment. The Swedish furniture giant, which aligns its fiscal year with its parent Ingka Group (September-August), reported a 6% year-on-year increase in sales, reaching ₹1,860.8 crore. This marks a continued upward trend from the previous fiscal year, 2023-24, where revenue grew by 5.12% to ₹1,852.7 crore, although losses also increased by 15% to ₹1,303 crore, according to Tofler data. Patrik Antoni, who assumed the role of chief executive of IKEA India in August 2025, articulated the company's ambition to achieve profitability within the next two years while maintaining sustainable expansion.

Antoni emphasized the significant potential within the Indian home furnishing market, which is projected to reach $48 billion by 2030, growing at an 8.7% compound annual growth rate. IKEA India aims to leverage this growth by enhancing affordability, accessibility, and sustainability in home furnishings. The company's operations in India are structured across three primary segments: retail (encompassing home furnishing and furniture), food and restaurants, and IKEA for Business (B2B). The 2024-25 growth was notably propelled by a 34% year-on-year surge in online sales. The B2B segment also experienced substantial expansion, growing by 20% and contributing 19% to the total revenue. Furthermore, the food division, which accounts for approximately 10% of overall sales, remained a crucial in-store attraction, serving 2.2 million meals across its restaurants.

Murali Iyer, IKEA India's chief financial officer, highlighted a 12% improvement in Ebitda (excluding fixed costs). He further noted the success of their online sales growth and the rewarding entry into the North Indian market through online channels and new format stores in Delhi and Bengaluru. In 2024-25, IKEA India welcomed nearly 110 million customers across its various channels. Furniture remains the top-selling category, reflecting the escalating demand for budget-friendly home solutions across the nation. IKEA strategically offers over 50 furniture items priced under ₹1,000 and more than 750 home furnishings under ₹200, effectively catering to price-sensitive urban consumers.

During the fiscal year, IKEA expanded its physical footprint by establishing a city store in West Delhi, marking its entry into the northern market. It also bolstered its presence in Bengaluru with a new Plan and Order Point, designed to assist customers in planning and designing their interiors with professional guidance. Combined with its existing large-format stores in Hyderabad, Navi Mumbai, and Bengaluru, IKEA now boasts an omnichannel presence that reaches over 90% of urban households in India.

Looking ahead, IKEA plans to accelerate its India expansion by opening three to four new small-format city stores over the next 10 months, shifting from its traditional large-format outlets to more compact urban showrooms. This growth initiative is expected to triple or quadruple its current workforce of approximately 3,000 employees. The company has already utilized its initial ₹10,500 crore investment in India and is preparing to announce a larger second tranche of investment. Ingka Centres, the real estate arm of Ingka Group, is actively developing two large IKEA-anchored shopping centers in Noida and Gurugram to further enhance its retail ecosystem.

IKEA is also closely monitoring the progress of the India-EU Free Trade Agreement (FTA). Patrik Antoni noted that the company currently exports approximately €300 million worth of goods annually from India to the European Union. He anticipates that the FTA could lead to lower tariffs on raw materials such like wood and machinery, thereby potentially boosting the competitiveness of local production.

Globally, the Ingka Group, IKEA's parent company, reported revenue of €41.5 billion for 2024-25, a slight 0.9% decrease from the previous year. This minor decline was attributed to the group absorbing price cuts to maintain affordability amidst prevailing economic uncertainties. Despite the top-line reduction, the group's net profit saw a significant increase, rising to €1.4 billion from €0.8 billion in 2023-24. The Ingka Group comprises three core business divisions: IKEA Retail, Ingka Centres, and Ingka Investments. IKEA Retail operates across 31 markets, collaborating with Inter IKEA Systems on global retail strategy. Ingka Centres manages shopping destinations in 14 markets, featuring over 2,600 brands across 37 meeting places, and is developing Lykli Noida in India. Ingka Investments, the group’s investment arm, manages six diverse portfolios, including real estate, renewable energy, forestland, business acquisitions, circular investments, and financial markets.