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LG Electronics India reported strong set of results

ICICIdirect Research 14 Aug 2026 DISCLAIMER

News: LG Electronics India reported strong set of results with revenue growing 15.5% YoY to ₹7234 crore while down 10.2% QoQ due to seasonality. Segmentally home appliances segment (washing machine, fridge and AC) grew by 13.6% YoY to ₹5577 crore while Home entertainment segment (TV) grew 22.3% YoY to ₹1657 crore. Considering the volatility in commodities and currencies, Gross margins remained fairly stable, declining 19 bps YoY and expanding 286 bps QoQ, indicating the company's ability to pass on the rising cost. EBITDA came in at ₹905 crore with EBITDA margins at 12.5% which expanded by 108 bps YoY and 77 bps QoQ owing to improvement in product mix and premiumisation. PAT came in at ₹654 crore increased 27% YoY which declined marginally by 6%.

View: LG’s Q1 performance started on a strong note, supported by healthy revenue growth and margin improvement, driven by a favourable product mix with higher contribution from televisions and continued premiumisation across categories. We expect the growth momentum to sustain, aided by increasing premiumisation and new capacity additions. The ₹5,000 crore Sri City expansion is expected to nearly double LG’s existing capacity and create a larger export opportunity, providing an additional growth lever over the medium term.

Impact: Positive

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