LG Electronics India announced its September quarter (Q2FY26) results on November 13, 2025, marking the company’s first earnings release since its highly anticipated listing. The quarter reflected a mixed performance, with profitability under pressure despite broadly stable revenue.
The company posted a 27% year-on-year decline in net profit, which fell to ₹389 crore, compared to ₹536 crore in the same quarter last year. Sequentially too, profit softened from ₹513 crore reported in Q1FY26.
Revenue from operations stood at ₹6,174 crore, representing a modest 1% YoY increase, although slightly lower than the ₹6,263 crore recorded in the previous quarter. The subdued revenue trend was partly influenced by consumers delaying purchases until late September, coinciding with the implementation of a broad-based consumption tax reduction that lowered prices across categories, including electronics.
Profitability Impacted by Higher Costs
LG Electronics India’s operating performance reflected notable cost pressures.
The company reported an EBITDA of around ₹547 crore, down sharply from ₹757.4 crore in Q2FY25. Consequently, the EBITDA margin contracted to 8.9%, compared to 12.4% a year earlier.
Total expenses rose 3% YoY to ₹5,729 crore, driven mainly by higher material and operating costs. These elevated expenses compressed margins despite relatively stable demand.
Cooling appliance sales were particularly affected during the quarter, as early rains and lower temperatures reduced seasonal demand, even after a steep price correction following the tax cuts.
Segment Performance
LG Electronics India’s two major business segments in the electronics sector delivered a mixed performance during the quarter:
- Home Appliances and Air Solutions: Revenue remained largely steady at ₹3,947 crore.
- Home Entertainment: Revenue increased 3% YoY to ₹2,261 crore, supported by improved demand for premium entertainment products.
These segments continue to form the backbone of LG’s India operations, with home appliances contributing the majority of revenue.
Market Context and Industry Backdrop
Despite near-term softness, analysts remain optimistic about the broader market environment. Industry data indicates that India’s appliances and electronics market (excluding mobile phones) is on a strong structural growth path, supported by rising demand for energy-efficient products, increased adoption of AI-enabled appliances, and expanding household consumption.
LG’s strong brand credibility, extensive distribution network and established presence across categories such as washing machines, refrigerators, televisions and air conditioners continue to provide competitive strength, even in a challenging quarter.
Stock Performance Since Listing
LG Electronics India made a stellar debut on the stock exchanges on 14 October, listing with a 50% premium over its issue price. The listing was one of the most successful large-scale offerings of the year.
Since then, the share price has moderated from its peak, settling around ₹1,673—around 5% below its listing high of ₹1,749. Analysts have highlighted the company’s leadership in premium consumer electronics and export potential as key long-term growth drivers.
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Conclusion
LG Electronics India’s Q2FY26 results reflect a quarter shaped by elevated costs, softer seasonal demand and cautious consumer spending. While profitability contracted, revenue remained stable and the company continued to demonstrate resilience across its core business divisions.
As consumption patterns normalise post-tax reforms and industry demand strengthens, LG Electronics India remains well-positioned to navigate the evolving landscape of India’s consumer electronics and home appliances market.
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