LG Electronics India reported an 8% year-on-year revenue growth to ₹80.5 billion in Q4FY26, driven by improved demand across home appliances and home entertainment categories. However, operating performance remained under pressure as EBITDA declined around 10% year-on-year due to higher input costs, rupee weakness and increased investments in distribution and channel promotions. According to reports from ET Now, the company faced margin pressure from currency depreciation, higher commodity costs and promotional spending that weighed on profitability despite healthy revenue growth. Latest market data shows LG India shares fell to ₹1,474 on BSE after Q4FY26 net profit dropped 8% YoY to ₹693 crore, though sequentially the picture was stronger with profit surging 672% and revenue nearly doubling QoQ from a weak Q3.
The home appliances segment recorded 6% growth during the quarter, led by strong traction in premium categories such as French-door refrigerators, automatic washing machines and dishwashers. Room air conditioners also witnessed healthy demand during the summer season, helped by the launch of new star-rated models and GST-related benefits. The home entertainment business delivered robust 20% growth, aided by rising demand for large-screen televisions and higher consumption linked to major cricket events. As reported by ET Now, the 55-inch and above TV category continued to gain share in the company's portfolio.
Both Nomura and Emkay Global Financial Services have retained their 'Buy' ratings on the stock, citing strong demand in premium appliances, rising exports and growth in the B2B segment as long-term growth drivers. Nuvama has maintained a target price of ₹1,820 while Emkay retained its target price of ₹1,900. According to ET Now, brokerages trimmed earnings estimates slightly to factor in near-term margin headwinds, with Nuvama reducing FY27 and FY28 earnings estimates by 4% and 3% respectively, while Emkay cut projections by around 5% and 4%.
Management remains optimistic about FY27, guiding for mid-teen revenue growth along with early double-digit EBITDA margins. The company expects growth to be driven by domestic demand recovery, premiumisation, localisation efforts, exports and expansion of its B2B operations. Exports are emerging as a major focus area with plans to expand Essential Series products into more international markets while strengthening premium product portfolio in developed economies such as the US and Europe. The company is also continuing work on its Sri City manufacturing facility, where air-conditioner compressor production is expected to begin in Q3FY27, followed by RAC assembly operations in Q4FY27.
