IKEA Aims for Profitability in India by FY28, Plans 25 New Small & Medium Stores in Next 4-5 Years

New Delhi, March 7, 2026: Swedish furniture retailer IKEA, which is expanding in India through an omnichannel approach, expects its operation in the country to be profitable by the end of FY28, and plans to add 25 new small and medium format stores in the next four to five years, a top company official said .

Profitability Roadmap

"We have an ambition to be profitable by the end of FY28," IKEA India CEO Patrik Antoni told PTI. This will be achieved by growing topline, opening more stores, reducing fixed costs, and operating more efficiently, in addition to increasing local sourcing .

For that, IKEA in India is working on several vectors, such as growing the topline and opening more stores. "But we will also be better at the stores... We will get better at what we do at the stores, be more operationally efficient, be better to serve our customers and create better solutions for them. All that will drive topline and margins that you need on the top," said Antoni .

According to Antoni, India is among "one of the top three priority countries" of the Swedish furniture and home furnishing retailer, where they "want to make a breakthrough" .

Expansion Strategy: Smaller Stores, Bigger Reach

"We will open another 25 stores in the coming four or five years. So we now have full speed on the expansion," Antoni said, adding that these new stores "will range from 2,500 sq feet to 20,000 sq feet depending on their location" . Some reports also indicate stores could go up to 40,000 sq ft depending on location and concept .

The shift to smaller formats marks a strategic pivot from IKEA's traditional large-format stores. The company's last large format store in India was at Bengaluru, measuring 4.6 lakh sq ft, while its two upcoming stores in Delhi-NCR at Noida and Gurugram are in the two lakh sq ft range .

"We are scouting land plots both in Delhi and Bengaluru, and if we get the right possibilities, there might be one more," Antoni said .

IKEA recently opened its first city store in Pune on March 12, spread across 32,000 sq ft. IKEA had already entered Pune through online deliveries six years ago .

Omnichannel and Digital Focus

IKEA, which sees "long-term potential" in India, is working on an omnichannel approach that helps keep operating costs low while combining physical presence with online experience. Currently, about 30% of its India sales come from online, with a target to raise this to 40% .

"Today, we are present in about 80 markets around India. Six major markets we see are, of course, the big cities, Delhi, Mumbai, Bengaluru, Chennai, and Hyderabad. Those are the six big cities, and we are growing around them," Antoni said .

Investment and Financial Performance

IKEA has committed to invest another ₹20,000 crore in India over the next five years, more than doubling its initial commitment . The company's initial investment of ₹10,500 crore approved by the government in 2013 to set up 10 stores over a decade has now been largely utilized .

According to the latest annual filing by IKEA India before the RoC, it has reported a widening of its total loss to ₹1,299.4 crore in FY25, and its revenue from operations was also down 3.33 per cent to ₹1,749.50 crore . IKEA India's total borrowing has also increased in FY25 to ₹8,335.20 crore as the company is investing to expand its network through an omnichannel approach .

However, the company remains focused on building for the long term. "If we consider, like to like comparison basis the current operations that include our functioning stores and online operations, we have seen growth and strong momentum across the business," IKEA said in a statement. "We remain focused on building a resilient and sustainable business and are on track to move towards profitability within the next two years, while laying a solid foundation to serve the many Indians for the next 100 years" .

Current Presence

Currently, IKEA is operating three large-format stores in Hyderabad, Navi Mumbai, and Bengaluru, two city stores in Worli and New Delhi, and is investing around ₹7,000 crore to enter the National Capital Region with two stores in Gurugram and Noida .