LG Electronics India Q2 Results: Revenue Up 20%
LG Electronics India reported strong growth for the September quarter (Q2FY27), with revenue increasing nearly 20% year-on-year to ₹7,380 crore. The company’s Ebitda margin reached 9.5%, a 63-basis-point expansion, as operating leverage and a richer product mix helped mitigate higher commodity costs and increased go-to-market spending.
The company’s dual focus on premiumization and mass-market penetration fueled these results. Home appliances and air solutions revenue rose 21% to ₹4,772 crore, with refrigerators, washing machines, and air conditioners all seeing double-digit growth. Meanwhile, the home entertainment segment grew 17% to ₹2,608 crore, marking the third consecutive quarter of double-digit growth in that category. Large-screen televisions, specifically those over 55 inches, accounted for more than half of the segment's revenue.
Despite the top-line growth, the company faces headwinds. Gross margins contracted by 52 basis points due to a 20% increase in raw material costs compared to the previous year. Additionally, the Ebitda margin declined sequentially from 12.5% in Q1 to 9.5% in Q2. Management has maintained its guidance for mid-teens revenue growth and early double-digit Ebitda margins for the second half of the fiscal year, citing the Sri City facility ramp-up and compressor localization as key supports.
Beyond consumer electronics, LG is expanding its B2B footprint through information display solutions and vehicle components, including telematics and digital cockpits. Following a 21% stock gain this year, ICICI Securities raised its target price to ₹2,100 from ₹1,850, noting the company's potential to sustain growth through improved product mix and new manufacturing capacity.
Why it matters
Investors should monitor whether LG can successfully balance its margin pressures against the capital-intensive scaling of its new B2B and automotive segments.
FAQ
What was the revenue growth for LG Electronics India in Q2FY27?
Revenue grew by almost 20% year-on-year to ₹7,380 crore.
How did the home entertainment segment perform?
Home entertainment revenue grew 17% to ₹2,608 crore, marking its third consecutive quarter of double-digit growth.
What risks does the company currently face?
Key risks include currency volatility, commodity inflation, competitive intensity, and a 20% increase in raw material costs compared to last year.
Source: Mint Markets. See the original source for full details.
Scan with your phone
Scan with your phone