LG Electronics India reported a 27.3% year-on-year decline in net profit to Rs 389 crore for Q2 FY26, marking the company’s first quarterly results since its blockbuster stock market debut in October. Despite margin pressures, revenue remained resilient with marginal growth amid industry-wide challenges.
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Q2 FY26 Financial Snapshot
| Metric | Q2 FY26 | Q2 FY25 | YoY Change |
|---|---|---|---|
| Net Profit (PAT) | Rs 389 crore | Rs 536 crore | -27.3% |
| Revenue from Operations | Rs 6,174 crore | Rs 6,113.8 crore | +1% |
| EBITDA | Rs 547.5 crore | Rs 757.4 crore | -27.7% |
| EBITDA Margin | 8.9% | 12.4% | -350 bps |
| Home Appliances & Air Solutions | Rs 3,948 crore | — | Slight decline |
| Home Entertainment Division | Rs 2,226 crore | — | Improvement |
Mixed Performance in Debut Quarter
LG Electronics India’s profit after tax declined to Rs 389.4 crore for the July-September quarter compared to Rs 535.7 crore in the same period last year, while revenue from operations rose slightly by 0.98% to Rs 6,174 crore.
This represents the company’s first quarterly results since its spectacular stock market debut on October 14, 2025, when shares listed at a 50% premium on the National Stock Exchange at Rs 1,710 per share against the IPO price of Rs 1,140.
The company’s IPO, open for subscription between October 7 and 9 this year, received an overwhelming response with a 54.02 times oversubscription.
Margin Pressures Impact Profitability
Operating performance faced significant pressure during the quarter. EBITDA margins contracted by 350 basis points to 8.9%, reflecting challenges across India’s consumer electronics sector. The margin compression stems from rising input costs, including copper and plastic prices, coupled with increased advertising expenditure as companies competed for festive season market share.
Segment-wise analysis reveals contrasting trends: the home appliances and air solutions division experienced slight revenue decline to Rs 3,948 crore, while the home entertainment division showed improvement with Rs 2,226 crore in quarterly revenue.
Industry Headwinds Affect Demand
Industry-wide, electronics and consumer goods companies in India faced softer demand through most of the quarter as buyers postponed purchases until late September. This seasonal buying pattern, combined with inventory adjustments, created temporary pressure on sales volumes across the sector.
Despite these challenges, LG Electronics India maintains its leadership position in key product categories including refrigerators, washing machines, air conditioners, and televisions. The company’s debt-free balance sheet and 45% return on capital employed (ROCE) continue supporting long-term growth prospects.
Market Reaction and Future Outlook
Following the results announcement, shares closed 1.13% higher at Rs 1,674.10 on BSE, with approximately 1.11 lakh shares changing hands—higher than the two-week average. The company’s management maintained its FY26 guidance of 10% revenue growth during the earnings call.
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Frequently Asked Questions
Q1: When did LG Electronics India launch its IPO?
LG Electronics India’s IPO was open for subscription from October 7-9, 2025, and the company listed on October 14, 2025, at a 50% premium to its issue price.
Q2: What caused the profit decline in Q2 FY26?
The 27.3% profit decline resulted from margin pressures due to rising input costs, increased advertising expenses, and softer consumer demand during the quarter.
Q3: What is LG Electronics India’s revenue guidance for FY26?
The company maintains its FY26 guidance of 10% revenue growth, as confirmed by MD Hong Beom Rho during the earnings call.
Q4: Which business segments performed better in Q2?
The home entertainment division showed improvement with Rs 2,226 crore revenue, while home appliances and air solutions slightly declined to Rs 3,948 crore.
Q5: How did the stock market react to the Q2 results?
Despite the profit decline, LG Electronics India shares closed 1.13% higher at Rs 1,674.10 on BSE following the results announcement.
