LG Electronics India shares fell nearly 5% after the company reported a steep 27.3% YoY decline in Q2 FY26 net profit, triggering its sharpest fall since listing in October. With flat revenue, weaker margins, rising costs, and challenging macro conditions, the market reacted strongly even as analysts maintained bullish long-term views.
TheInterviewTimes.com | November 14, 2025 – LG Electronics India Ltd. shares plunged nearly 5% on Friday, marking their steepest one-day decline since the company’s high-profile IPO in October. The stock slipped to ₹1,590 intraday before settling at ₹1,616 on the NSE, hovering just above its 52-week low of ₹1,581.10. The broader Nifty 50 inched up 0.12% to 25,910.05, highlighting the market’s disappointment with the company’s first quarterly results post-listing.
Profit Hit Weighs on Stock as Margins Contract
LG Electronics India reported a 27.3% year-on-year fall in net profit for Q2 FY26, posting ₹389.43 crore compared with ₹535.70 crore a year earlier. Revenue from operations remained nearly flat at ₹6,174.02 crore, a marginal 0.98% YoY increase, indicating sluggish demand across key product lines.
The company’s EBITDA dropped 27.6% to ₹548 crore, with margins narrowing to 8.9% from 12.4% in the same quarter last year. In its earnings statement, LG India attributed the weaker margins to rising commodity prices and higher investments in festive go-to-market programs, which were rolled out to support distributors in a difficult market.
Total expenses rose 5% YoY to ₹5,728.95 crore, driven by elevated input costs and marketing spends. The home appliances and air solutions division—contributing 75% of total revenue—recorded only modest growth. However, the room air conditioner (RAC) category has grown 22.6% annually over the last three years, with rising adoption of energy-efficient and AI-enabled models.
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Market Leadership Holds Firm Despite Macroeconomic Pressures
Managing Director Hong Ju Jeon said the first half of FY26 was marked by “macroeconomic headwinds,” including an unusually cool summer, geopolitical uncertainties, tariffs, and forex volatility. Despite these challenges, LG Electronics India continued to maintain category leadership.
The company improved offline market share in:
- Televisions (27.5%)
- Refrigerators (29.9%)
- Air Conditioners (17.3%)
These gains underline the strength of LG’s brand equity and its expanded offline retail presence across urban and emerging markets.
Brokerages Stay Positive on Long-Term Growth
Even as quarterly earnings disappointed, analysts maintained confidence in LG Electronics India’s long-term prospects. Motilal Oswal Financial Services reiterated its ‘Buy’ rating, assigning a target price of ₹1,800. The brokerage cited the recent GST rate cut, strong festive demand, and LG’s premium positioning as key drivers.
ICICI Securities, which initiated coverage during the IPO, said the company retains strong fundamentals—including a debt-free balance sheet, more than 36,000 sales touchpoints, and leadership in white goods. LG’s ₹11,607-crore IPO, listed on October 14 at a 50% premium, was oversubscribed 54 times, the highest for any Indian IPO since 2008.
Strategic Priorities and Growth Outlook
Going forward, LG Electronics India plans to deepen its innovation pipeline with expanded QNED and OLED premium TV lines, while strengthening its B2B business across education, healthcare, hospitality, and infrastructure.
Analysts say the company’s two-track strategy—enhancing the LG Essential value-focused range while expanding premium offerings—positions it well to tap into India’s fast-growing consumer and commercial electronics markets. With rising disposable incomes and under penetration in several categories, LG is expected to leverage both brand loyalty and technological leadership.
While short-term profitability pressures persist, the company’s long-term outlook remains solid, supported by a growing consumer market and its strategic foothold in the home appliances and electronics sector.
LG Electronics India: Key Takeaways
- LG Electronics India shares fell nearly 5% following a 27.3% YoY profit decline in Q2 FY26.
- Revenue growth remained flat, while EBITDA margin dropped sharply to 8.9%.
- Analysts from Motilal Oswal and ICICI Securities remain bullish with strong long-term views.
- LG maintains leadership in TVs, refrigerators, and air conditioners despite macro challenges.
- Strategic focus on premium innovation, value products, and B2B expansion is expected to support future growth.