loader2
Login Open ICICI 3-in-1 Account
  • Text Size
  • Text to Speech
  • Color Contrast
  • Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

LG Electronics – Steady quarter amidst several headwinds

ICICIdirect Research 22 May 2026 DISCLAIMER

LG Electronics reported a steady set of results, with revenue rising 8% YoY to ₹8,054 crore (up 96% QoQ). Segment-wise, the Home Appliances division (comprising washing machines, refrigerators and RACs) grew 5.7% YoY to ₹6,516 crore. This growth was supported by channel filling of newly rated RAC inventory, with RAC sales surpassing 1 million units during the quarter. Additionally, strong traction in premium product categories across refrigerators, washing machines and RACs drove overall ASP.
Home Entertainment division (comprising televisions, monitors, audio devices, etc.) reported strong growth of 19.6% YoY to ₹1,537 crore, aided by strong demand for large-screen TVs following the GST rate cut, which accelerated premiumisation trends.
However, commodity inflation and rupee depreciation continued to exert pressure on profitability, with gross margins declining ~187 bps YoY and EBITDA margins contracting ~242 bps YoY. Despite these near-term pressures, management remains optimistic on margin recovery, supported by calibrated price hikes, improving product mix and continued premiumisation across categories.
Going ahead, key growth drivers for LG includes ramping-up of its strategic Sri City facility, where the company plans to invest ~₹5,000 crore, doubling its capacities. This is likely to accelerate exports, with its contribution expected to jump from ~6–7% to mid-teen levels over medium term.
We maintain our BUY rating on LG Electronics.

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere