LG Electronics India LimitedConsumer GoodsLGEINDIA
Q1 FY27 concall · earnings callLG Electronics India Limited
LG India delivered broad-based double-digit growth across all major categories, expanding margins despite industry cost pressures, while advancing its 'Make in India' and export strategy.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Revenue | ₹7,233 Cr | 15.5% | |
| EBITDA Margin | 12.5% | 1.1 ppts | |
| Net Profit | ₹653 Cr | 27.2% | |
| PAT Margin | 8.9% | — | |
| Home Appliance & Air Solution Revenue | ₹5,577 Cr | 13.6% | |
| Home Entertainment Revenue | ₹1,657 Cr | 22.3% |
TL;DR
- Revenue grew 15.5% YoY to INR 72.33 billion with every major category seeing double-digit growth.
- EBITDA margin expanded 110 bps YoY to 12.5% through premium mix, calibrated price increases, and operating leverage.
- Exports grew significantly, reaching 65 countries and are margin accretive compared to domestic sales.
- The Essential series sold over 5 lakh units in H1 CY26 and is margin-accretive, expanding reach to new customers.
- Market leadership maintained across key categories, with TV market share at 26% and OLED share at 59%.
- The third plant at Sri City is on track, with compressor production starting in Q3 FY27.
Said on the call
“Growth, profitability, market leadership this quarter, LG delivered on all three.”
From the Q&A
| Topic | What management said |
|---|---|
| Home Entertainment Growth Sustainability | Management stated TV growth at 25% is sustainable due to a structural shift towards larger premium formats; 55-inch and above segment grew ~53% and contributes 50% of the TV business. |
| Export Performance and Margins | Exports grew 30% in Q1, are margin accretive vs domestic business, and now reach 65 countries; full-year target is to significantly increase exports. |
| Impact of Compressor Import Policy | The new policy restricting compressor imports is positive for LG as its high localization and in-house compressor production give a cost advantage and supply security. |
| B2B Segment Performance | B2B delivered strong growth in Q1, with LED signage recording its highest ever quarterly sale and a 36% market share; targeting a 20% CAGR growth trajectory. |
| Managing Raw Material Costs | LG uses a multi-level approach including localization, strategic sourcing, multiple suppliers, value engineering, and calibrated price increases to protect margins. |
| Essential Series Performance and Margins | Essential series sold over 5 lakh units in H1 CY26, has margins in line with the rest of the B2C portfolio, and is exported to 22 countries. |
| Localization Target | Localization rate was 55.2% last full year, with a target to reach 65% in 3-4 years; it acts as a structural margin lever and a natural hedge against currency depreciation. |
| Data Center Cooling Opportunity | Data center cooling is a meaningful long-term B2B opportunity; LG is active in mid-scale projects and evaluating the hyper-scale segment, potentially through partnerships. |
Guidance
- Expect capitalization of Sri City plant to begin from the second half of FY27 as compressor and room AC lines come on stream.
- Target to significantly increase exports for the full year.
- Aim to deliver a 20% CAGR growth trajectory for the B2B segment.
- Target to reach a localization rate of 65% over the next 3 to 4 years.
Source
Summary written from the transcript filed by LG Electronics India Limited for the call held on 14 Aug 2026; published 20 Aug 2026, 19:33 IST.
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