At its first annual general meeting after listing on Indian bourses, LG Electronics India announced ambitious expansion plans for its manufacturing and export operations. Sanjay Chitkara, co-chief sales & marketing officer, revealed that the company already exports Made-in-India products to over 50 countries and is targeting 22 countries for Essential series export by calendar year 2026. The company has invested ₹5,000 crore in its Sri City factory, which will begin operations by December 2026 and will serve as an export hub. The strategy focuses on exporting premium products to advanced markets and expanding Essential series to emerging markets, positioning India as an increasingly important manufacturing and export hub for the global LG group.
LG Electronics India shares fell nearly 3% to ₹1,676.95 per share on BSE on Monday, August 17, after hitting a fresh 52-week high of ₹1,755.55 during the trading session. The stock had touched its 52-week low of ₹1,300 on January 21, 2026, and has surged around 12% in 2026 so far. The profit booking came despite the company's strong Q1FY27 performance that exceeded analyst expectations. The stock's market capitalisation stood at ₹1,13,694.38 crore at 1:25 pm on Monday. In today's trading session, the stock opened at ₹1,651.00 and reached a high of ₹1,675.00 with a low of ₹1,651.00, while the average traded price was ₹1,663.43.
LG's first quarter FY27 revenue increased by approximately 15.5% year-on-year to ₹7,233.3 crore, meeting analyst expectations. The company reported consolidated net profit of ₹652.8 crore, jumping 27.2% YoY against ₹513.2 crore in the year-ago period. EBITDA grew by around 26.2% YoY to ₹904.2 crore, representing an 8% beat over estimates. The operating profit margin expanded to 12.5% from 11.4%, surpassing the estimated 11.8%. Adjusted profit after tax rose by approximately 27% YoY to ₹6.5 billion, also meeting expectations. Management attributed the margin expansion to a richer product mix, calibrated price hikes, and operating leverage. The strong recovery was led by RAC and premiumisation, indicating successful strategy execution in the premium segment.
According to the company's management, Hong Ju Jeon, managing director, highlighted significant growth opportunities in India's home appliance market. Refrigerator penetration currently stands at 30%, washing machines at 20%, and room air conditioners at 10%, indicating substantial room for future growth. The company expects further demand growth following GST rate reduction for air conditioners and larger TVs. The management emphasized using artificial intelligence (AI) to optimise appliance operations and reduce energy consumption. The company's Make in India strategy is positioned as an increasingly important growth lever, with management focusing on innovation, operational excellence, sustainable growth, and long-term value creation while maintaining the highest standards of corporate governance expected from a listed company.
Motilal Oswal has issued a buy rating on LG Electronics India with a target price of ₹2,000, revising upward from its earlier target of ₹1,800. According to the research report dated August 14, 2026, the brokerage maintains its positive outlook on the company's growth trajectory. The stock currently trades at 41x/34x FY27E/FY28E EPS, with Motilal Oswal valuing the company at 45x FY28E EPS to arrive at the revised target price. The brokerage increased its EPS estimates by ~7%/10% for FY27/FY28 as it raised revenue and margin projections, reiterating its buy recommendation. The premium products, rising exports, and the Sri City ramp-up could add a new leg to growth, providing additional catalysts for sustained performance.
