More Info from
docs.joomla.org
Below is taken from link above:
Install via FTP (unpacked template file)
Templates can also be installed via FTP without packaging them. Simply select the template folder on your PC and upload it to your server, using your favorite FTP software. Be sure you upload the template folder to the directory: /path_to_joomla/templates/ - where /path_to_joomla/ is the location of your Joomla! installation on the server. This method is mostly used when you have created a template yourself, and do not want to have to package it to install the template, or if you want to upload more than one template at once.
Note: Do not try to use FTP to install Components, Modules and Plugins if you are a beginner/novice. These items need database entries which have to be inserted manually if you bypass the package installer.