Archive · 14 Nov 2025
LG India Sees Profit Decline but Eyes Revival
LG Electronics India, a company that sells electronics like TVs and refrigerators, had a tough time in the last three months (July-September).
Their profits dropped by almost 27% compared to the same time last year.
This happened because the cost of making their products went up, and they spent more money getting ready for sales during holidays.
Sales of their products barely grew, only by about 1%.
They also said that people waited to buy things because of new tax rules (GST).
However, LG is hopeful that the next few months will be better.
They expect sales to pick up because the weather is getting cooler (good for air conditioners) and it's a busy season for weddings.
They are also seeing good sales for their more expensive, premium products.
LG is working to regain its strong sales growth and is optimistic about the future.
LG India's net profit fell by 27.3% in the July-September quarter due to margin pressures.
Net sales saw a marginal increase of 0.9% to Rs 6,170.4 crore during the same period.
EBITDA margins decreased by 350 basis points to 8.9% from 12.4% year-on-year.
Factors contributing to lower profits included rising commodity prices, increased investment in festive sales, and temporary consumer purchase deferrals due to GST transition.
LG expects double-digit revenue and margin growth in the second half of FY26, citing improving market conditions and seasonal demand, and has reported market share gains in TVs and refrigerators.
- Who
- LG Electronics India
- What
- Reported a 27.3% decline in net profit and a near-flat revenue growth in Q2 FY26, while also noting market share gains in several product categories.
- When
- July-September (Q2 FY26) and looking towards the second half of FY26.
- Where
- India
- Why
- The profit decline was attributed to margin pressures from rising commodity prices, increased investment in festive sales, and temporary consumer purchase deferrals due to GST transition. The company expects improvement due to stable channel inventories and seasonal demand.
Company Outlook
Analyst Expectations
Growth Prospects
Company Outlook
LG India is confident of achieving double-digit revenue and margin growth in the second half of FY26, expecting better market conditions and stable channel inventories.
Analyst Expectations
Sector analysts noted LG has historically delivered around 13% CAGR on topline, with EBITDA margins around 12-13% and profit growth about 23% over the last three years, suggesting a need for strong recovery.
Impact of GST
Company Outlook
LG believes GST challenges are behind them, with purchases pausing briefly but recovering during Navratri, leading to marginal topline growth.
Analyst Expectations
The transition to GST caused temporary issues, including a pause in consumer purchases from August 15 to September 22, impacting the quarter's performance.
- Company
- LG Electronics India
- Quarter
- July-September (Q2 FY26)
- Net Profit Decline (YoY)
- 27.3%
- Net Sales Growth (YoY)
- 0.9%
- Net Sales
- Rs 6,170.4 crore
- EBITDA Margin
- 8.9% (down from 12.4% YoY)
- TV Market Share (Jan-Sep 2025)
- 27.5% (up 1.4% YoY)
- Refrigerator Market Share (Jan-Sep 2025)
- 29.9% (up 1% YoY)
