Ikea India Navigates Financial Losses with Strategic Expansion and Investment

Ikea India has reported a total loss of Rs 1,325.2 crore in FY25 with a decline in revenue by 3.33%. While expenditures on advertising have increased, the company's total borrowing has risen as it expands its network. Despite losses, Ikea India remains focused on sustainability and future profitability.

Ikea India, the Swedish home furnishings giant's subsidiary, has disclosed a financial setback for FY25, reporting a steep loss of Rs 1,325.2 crore and a revenue decline of 3.33%, down to Rs 1,749.50 crore, according to their latest regulatory filing.

The company's financials revealed a nearly 14.06% increase in advertising and sales promotion expenses amid growing borrowings, which escalated to Rs 8,335.20 crore to support its expanding omnichannel approach.

Despite these financial challenges, Ikea India remains optimistic, underscoring its progress towards profitability within two years and highlighting its commitment to growth and sustainability across its operations.

(With inputs from agencies.)