Swedish furniture giant IKEA is accelerating its expansion in India with a ₹7,000 crore investment in the National Capital Region (NCR) and plans to open 25 new small and medium format stores over the next four to five years. The company is also aiming to make its India operations profitable by the end of FY28 as it scales up its presence through an omnichannel retail strategy.
According to IKEA India CEO Patrik Antoni, the company will focus on expanding its store network, increasing revenue, improving operational efficiency, and strengthening local sourcing to reach profitability.
India Among Top Three Priority Markets for IKEA
India has become one of the top three priority countries for IKEA globally as the company seeks long-term growth in the fast-growing home furnishing market.
Antoni said IKEA plans to grow its topline revenue and improve operational efficiency in stores, which will help increase margins and profitability in the coming years.
Despite aggressive expansion, IKEA India has been investing heavily to build infrastructure and expand its network across the country.
Financial Performance and Expansion Investments
According to the latest regulatory filing with the Registrar of Companies (RoC), IKEA India reported a net loss of ₹1,299.4 crore in FY25, which widened compared to the previous year.
At the same time:
Revenue from operations fell 3.33% to ₹1,749.50 crore
Total borrowing increased to ₹8,335.20 crore
Investments continue to support store expansion and omnichannel infrastructure
The company remains optimistic about long-term growth opportunities in India’s retail sector.
25 New Stores Planned Across India
IKEA plans to open 25 additional stores within the next four to five years, focusing on a mix of small, medium, and large store formats depending on the city and market potential.
The new outlets will range in size from:
27,000 sq ft to 215,000 sq ft
This strategy allows IKEA to expand faster into more cities while controlling operational costs.
Major Investment in Delhi-NCR
As part of its India expansion strategy, IKEA is investing ₹7,000 crore in the Delhi-NCR region to establish new retail stores and infrastructure.
Two upcoming large stores are planned in:
Noida
Gurugram
Both stores will be located inside IKEA’s Lykli centres and will be around 2 lakh square feet each.
The company is also scouting additional land parcels in Delhi and Bengaluru for potential future stores.
Smaller Stores to Reach More Cities
To increase accessibility and expand faster, IKEA has adjusted its India growth strategy by introducing smaller store formats in emerging cities.
One example is the company’s first city store in Pune, which will open on March 12 and will span around 32,000 square feet.
Although IKEA entered Pune earlier through online deliveries, the new physical store marks its first brick-and-mortar presence in the city.
Omnichannel Strategy Driving Growth
IKEA’s India expansion is built around an omnichannel retail model, combining physical stores with strong online delivery networks.
Currently, IKEA operates:
Three large-format stores in
Hyderabad
Navi Mumbai
Bengaluru
Two city stores in
Worli
New Delhi
The company currently serves around 80 markets across India, focusing mainly on six major metropolitan regions: Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, and surrounding areas.
Long-Term Outlook for IKEA in India
In 2013, the Indian government approved an FDI proposal of ₹10,500 crore from IKEA to establish 10 stores and supporting infrastructure over a decade.
As the company continues expanding its store network, logistics infrastructure, and digital capabilities, India is expected to become one of IKEA’s most important growth markets globally.
With new stores, improved supply chains, and increasing local sourcing, the retailer aims to achieve profitability in India by FY28 while expanding access to affordable home furnishing solutions for millions of customers.
