Mumbai, Feb 4 (NationPress) Ikea India, the Indian division of the Swedish furniture and home décor powerhouse, has disclosed a significantly increased loss for the fiscal year that concluded on March 31, 2025 (FY25), while continuing to make substantial investments aimed at enhancing its footprint in the nation.

As per a regulatory submission to the business intelligence service Tofler, Ikea India experienced a total loss of Rs 1,325.2 crore in FY25.

In the prior fiscal year (FY24), the company had reported a net loss of Rs 1,299.40 crore.

The company's operational revenue also saw a 3.33% decline, totaling Rs 1,749.50 crore in FY25, down from Rs 1,809.80 crore in FY24.

Furthermore, the total income, which encompasses additional earnings, dropped by 3.9% to Rs 1,780.10 crore during the year, as indicated by the financial figures.

Despite the revenue slump, Ikea India escalated its investment in marketing and sales initiatives.

Advertising and promotional expenditures surged by 14.06%, reaching Rs 223.9 crore in FY25, compared to Rs 196.3 crore in the previous year.

This increase in spending coincides with the retailer's commitment to fortifying its brand and enhancing sales through multiple channels.

The company's total borrowings also saw a notable rise as it continues to invest in expansion through an omnichannel strategy.

Total borrowings surged to Rs 8,335.20 crore in FY25, up from Rs 7,060.00 crore in FY24 and Rs 5,709.90 crore in FY23.

As of March 31, 2024, Ingka Holding Overseas BV, based in the Netherlands, retained a 99.9% equity stake in Ikea India.

Currently, Ikea operates three large-format stores in Hyderabad, Navi Mumbai, and Bengaluru.

Additionally, it has two city stores located in Mumbai’s Worli and New Delhi. The company plans to invest approximately Rs 7,000 crore to expand in the National Capital Region, where it intends to establish two new stores in Gurugram and Noida.

With these ongoing investments, Ikea’s foreign direct investment (FDI) commitment in India is approaching its authorized limit.

In 2013, the Indian government approved Ikea’s proposal for a Rs 10,500 crore investment aimed at establishing ten stores and associated infrastructure over a decade.

Last month, during the commencement of its online sales operations in Tamil Nadu, Ikea India’s CEO Patrik Antoni announced in Chennai that the company is poised to further amplify its investments in the Indian market, underscoring its long-term commitment to growth within the nation.