Mumbai, Feb 4 (IANS) Ikea India, the local arm of Swedish furniture and home furnishing giant Ikea, has reported a wider loss for the financial year ended March 31, 2025 (FY25), even as it continues to invest heavily in expanding its presence in the country.

According to a regulatory filing with business intelligence platform Tofler, Ikea India’s total loss widened to Rs 1,325.2 crore in FY25.

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

The company’s revenue from operations also declined 3.33 per cent to Rs 1,749.50 crore in FY25, compared with Rs 1,809.80 crore in FY24.

The company’s total income, which includes other income, fell 3.9 per cent to Rs 1,780.10 crore during the year, as per financial data.

Despite the dip in revenue, Ikea India increased its spending on advertising and sales promotion.

The company’s ad and promotional expenses rose 14.06 per cent to Rs 223.9 crore in FY25, up from Rs 196.3 crore in the previous year.

The higher spending comes at a time when the retailer is focusing on strengthening its brand and boosting sales across channels.

Ikea India’s total borrowings also went up sharply as the company continues to invest in expansion through an omnichannel approach.

Its total borrowing increased to Rs 8,335.20 crore in FY25, compared to Rs 7,060.00 crore in FY24 and Rs 5,709.90 crore in FY23.

As of March 31, 2024, Ingka Holding Overseas BV, Netherlands, held 99.9 per cent equity stake in Ikea India.

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

It also runs two city stores in Mumbai’s Worli and in New Delhi. The company is investing around Rs 7,000 crore to expand in the National Capital Region, where it plans to open two stores in Gurugram and Noida.

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

In 2013, the government had cleared Ikea’s proposal to invest Rs 10,500 crore to set up 10 stores along with related infrastructure over a period of 10 years.

Last month, during the launch of its online sales operations in Tamil Nadu, Ikea India CEO Patrik Antoni said in Chennai that the company plans to further increase its investment in the Indian market, underlining its long-term commitment to growth in the country.

--IANS

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