LG Electronics India reported a 27% year-on-year (YoY) fall in its net profit at Rs 389 crore in the second quarter. The same stood at Rs 536 crore in the year-ago quarter. Revenue from operations, meanwhile, rose by a marginal 1% YoY to Rs 6,174 crore.
The company’s EBITDA also fell 28% YoY to Rs 547 crore from a year earlier. Margins shrank 350 basis points to around 8.9%.
This was LG’s first results after a storied IPO, which was subscribed heavily and delivered bumper listing gains of over 50%.
Segment wise, revenue from the home appliances and air solution division fell marginally to Rs 3,948 crore, while that from the home home entertainment division improved to Rs 2226 crore.
LG Electronics, received, strong backing from analysts post the IPO. PL Capital, for instance, said LG India is well positioned to build on its early market success.
The broker has a Buy rating with a target price of Rs 1,780, valuing it at 42x FY28 earnings. “LG Electronics India is a key player in consumer electronics and home appliances with a strong focus on innovation, quality, and a well-diversified product portfolio,” it said.LG has extensive distribution network and its premium brand positioning provide it a competitive edge in categories such as washing machines, refrigerators, air conditioners, and televisions — segments where it already holds leading market shares, analysts noted. “We estimate a revenue, EBITDA, and PAT CAGR of around 10%, driven by healthy growth across segments, capacity expansion, and a stronger push into after-sales and B2B businesses,” PL Capital said.
The company’s home appliances and air solutions segment, which contributes 75% of revenue, has grown nearly 14% annually over FY22-25, while the room air conditioner (RAC) category has expanded at 22.6%, helped by rising demand for energy-efficient and AI-enabled products.
Industry data shows India’s overall appliances and electronics market (excluding mobile phones) is expected to grow at 13.8% CAGR to Rs 6.19 lakh crore by CY29, indicating a large runway for premium brands like LG.
On Thursday, LG Electronics India shares closed nearly 1% higher at Rs 1,672 on NSE.