LG Electronics India Q2 Results: Net Profit Falls 27% YoY to ₹389 Crore on Higher Costs, Revenue Up 1%

LG Electronics India on Thursday announced its September quarter (Q2FY26) results, marking its first earnings report since its market debut in October. The consumer electronics giant posted a 27.3% year-on-year decline in net profit to ₹389 crore, compared to ₹536 crore in the same quarter last year. Sequentially, profit also dipped from ₹513 crore reported in Q1FY26.

Revenue from operations came in at ₹6,174 crore, a modest 1% increase year-on-year, though slightly lower than ₹6,263 crore in the previous quarter. Despite steady top-line growth, rising material and operating costs weighed heavily on profitability.

🔻 Margins Under Pressure

LG’s EBITDA for the quarter stood at ₹547 crore, down from ₹757.4 crore a year ago, translating to a margin of 8.9%, versus 12.4% in Q2FY25. Total expenses increased 3% YoY to ₹5,729 crore, driven primarily by elevated input costs and other overheads, which squeezed operating margins.

The company said that consumer spending was subdued during most of the quarter, as buyers postponed purchases until late September when a consumption tax reduction took effect, making household goods and electronics cheaper.

🏠 Segment Performance

The Home Appliances and Air Solutions segment's sales did not change from the previous year and still stood at ₹3,947 crore, whereas there was a 3% Year-on-Year increase to ₹2,261 crore for the Home Entertainment segment. The cooling appliances segment, however, was affected by the early rains and the cooler weather, which lessened the demand even though the prices were reduced following the tax relief.

📈 Market Debut and Share Trend

LG Electronics India’s stock made a blockbuster debut on October 14, listing with a 50% premium at ₹1,710 over its issue price of ₹1,140 per share — the largest mainboard IPO above ₹10,000 crore this year to list with such a premium.

Following the listing, several domestic brokerages issued bullish outlooks, citing LG’s strong market leadership and export potential. However, the stock has since eased, currently trading around ₹1,673, about 5% below its listing high of ₹1,749 per share.

Despite short-term headwinds, analysts remain optimistic about LG Electronics India’s long-term growth prospects, supported by robust consumer demand, brand strength, and expanding global operations.