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Sat, 15 Aug 2026
04:02:55 pm
Sat, 15 Aug 2026
04:02:55 pm
Rudransh Sangwan
Published at: August 14, 2026, 5:24 AM
Synopsis
LG Electronics India surprises investors as strong Q1 FY27 results drive fresh market interest, with premium demand, rising margins and export growth shaping the stock's outlook.
LG Electronics India shares were trading at ₹1,701, up 7.74% at 10:35 a.m. on August 14, after the company reported strong Q1 FY27 results. The stock had earlier jumped as much as 4.5% after the April-June quarter results showed net profit rising 27.2% year on year to ₹653 crore, while revenue from operations increased 15.5% to ₹7,233 crore. The stock's 52-week range is ₹1,300 to ₹1,749, while its market capitalisation stands at ₹1,15,442 crore and its P/E ratio is 63.2. The earnings growth was supported by premium demand across categories, higher operating profit and stronger margins.
The broader investment story is centred on premiumisation, exports and manufacturing capacity expansion. LG Electronics India holds leading positions across several consumer durable categories in the offline market, while TTM sales have reached ₹25,575 crore and TTM net profit stands at ₹1,825 crore. The company has reported a 5-year sales CAGR of 10% and a 3-year profit CAGR of 8%, although TTM profit growth is down 10%. Q1 FY27 also showed profit growing faster than revenue, with operating profit rising 26.3% to ₹904 crore. The company is expanding its B2B and export businesses, while new production capacity at Sri City is progressing according to plan. Investors will also be watching the premium product portfolio, festive-season demand, exports, margins and the impact of commodities, currency and supply-chain conditions.
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LG Electronics India was quoted at ₹1,701, up 7.74% at 10:35 a.m. on August 14. The stock has a 52-week high of ₹1,749 and a 52-week low of ₹1,300. At the current price, LG Electronics India has a market capitalisation of ₹1,15,442 crore and trades at a P/E of 63.2. Its book value is ₹113, putting the stock at about 14 times book value. ROCE stands at 32.3% and ROE at 24.7%, while the company has no dividend yield based on the supplied data.
| Metric | Value |
|---|---|
| Current Price | ₹1,701 |
| 52-Week High | ₹1,749 |
| 52-Week Low | ₹1,300 |
| Market Cap | ₹1,15,442 crore |
| P/E | 63.2 |
| Book Value | ₹113 |
| Price/Book | 14.0x |
| Dividend Yield | 0.00% |
| ROCE | 32.3% |
| ROE | 24.7% |
LG Electronics India's Q1 FY27 revenue increased 15.49% year on year to ₹7,233 crore from ₹6,263 crore, while net profit rose 27.2% to ₹653 crore from ₹513 crore. Operating profit increased to ₹904 crore from ₹716 crore, a 26.3% rise, and the operating margin was 12% compared with 11% a year earlier. The supplied company commentary separately puts the Q1 EBITDA margin at 12.5%, up 106 basis points. The quarter was supported by double-digit growth across categories, with televisions and washing machines leading while air conditioners and refrigerators benefited from summer demand. Other income stood at ₹95 crore, while profit before tax increased to ₹878 crore from ₹692 crore.
| Metric | Q1 FY26 | Q1 FY27 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹6,263 crore | ₹7,233 crore | 15.5% |
| Operating Profit | ₹716 crore | ₹904 crore | 26.3% |
| Operating Margin | 11% | 12% | +1 pp |
| Profit Before Tax | ₹692 crore | ₹878 crore | 26.9% |
| Net Profit | ₹513 crore | ₹653 crore | 27.2% |
| EPS | ₹7.56 | ₹9.62 | 27.2% |
LG Electronics India's sales increased from ₹15,087 crore in FY21 to ₹24,605 crore in FY26, while TTM sales have reached ₹25,575 crore. The company has delivered a 5-year sales CAGR of 10% and a 3-year sales CAGR of 7%. Profit increased from ₹1,529 crore in FY21 to ₹1,685 crore in FY26, although FY26 profit was lower than ₹2,203 crore in FY25. The supplied data shows a 5-year profit CAGR of 2%, a 3-year CAGR of 8% and TTM profit growth of -10%. Operating profit was ₹2,413 crore in FY26 and ₹2,593 crore on a TTM basis, with the TTM operating margin at 10%. ROE was 25% in the latest year, compared with a 3-year average of 34% and a 5-year figure of 30%.
| Financial Metric | FY21 | FY25 | FY26 | TTM |
|---|---|---|---|---|
| Sales | ₹15,087 crore | ₹24,367 crore | ₹24,605 crore | ₹25,575 crore |
| Operating Profit | ₹2,355 crore | ₹3,115 crore | ₹2,413 crore | ₹2,593 crore |
| Operating Margin | 16% | 13% | 10% | 10% |
| Net Profit | ₹1,529 crore | ₹2,203 crore | ₹1,685 crore | ₹1,825 crore |
| EPS | - | ₹32.46 | ₹24.83 | ₹26.89 |
The balance sheet remained relatively light on borrowings, with total borrowings at ₹459 crore in FY26 compared with ₹428 crore in FY25. Reserves increased to ₹6,987 crore from ₹5,291 crore, while fixed assets rose to ₹1,560 crore from ₹1,329 crore. Capital work in progress also increased sharply to ₹458 crore from ₹75 crore, which is relevant as the company expands manufacturing capacity. Total assets increased from ₹11,517 crore to ₹13,636 crore during FY26. Borrowings have increased gradually from zero in FY22, so investors can monitor the movement in debt alongside capacity expansion and capital spending.
| Balance Sheet Metric | FY25 | FY26 |
|---|---|---|
| Reserves | ₹5,291 crore | ₹6,987 crore |
| Borrowings | ₹428 crore | ₹459 crore |
| Fixed Assets | ₹1,329 crore | ₹1,560 crore |
| CWIP | ₹75 crore | ₹458 crore |
| Total Assets | ₹11,517 crore | ₹13,636 crore |
Cash generation remained positive in FY26, with cash from operating activities at ₹1,721 crore, up from ₹1,654 crore in FY25. However, cash from investing activities increased to an outflow of ₹859 crore from ₹29 crore, while free cash flow declined to ₹549 crore from ₹1,319 crore. The decline in free cash flow came alongside higher investment outflows, while CFO remained equivalent to 97% of operating profit. Net cash flow was ₹735 crore in FY26 compared with ₹1,519 crore in FY25.
| Cash Flow Metric | FY25 | FY26 |
|---|---|---|
| Cash From Operating Activities | ₹1,654 crore | ₹1,721 crore |
| Cash From Investing Activities | -₹29 crore | -₹859 crore |
| Cash From Financing Activities | -₹106 crore | -₹127 crore |
| Net Cash Flow | ₹1,519 crore | ₹735 crore |
| Free Cash Flow | ₹1,319 crore | ₹549 crore |
| CFO/Operating Profit | 77% | 97% |
LG Electronics India manufactures and distributes home appliances and consumer electronics and holds the number-one market position across several major categories in India's offline market, including washing machines, refrigerators, panel televisions, inverter air conditioners and microwaves. The company is pursuing premium products alongside the LG Essential range, while expanding B2B operations and exports. Management expects the festive period around Onam, Durga Puja and Diwali to support demand, with large-screen and premium television products and continued momentum in washing machines and refrigerators. The company is also targeting exports of large-capacity refrigerators to global markets, while the Essential Series is being expanded across Asia, the Middle East and Africa. Sri City capacity expansion is another part of the growth plan.
Promoter ownership remained unchanged at 85% in the June 2026 quarter. FII holding increased to 3.13% from 2.73% in March, while DII holding declined slightly to 7.84% from 8.03%. Public holding fell to 4.03% from 4.25%. The number of shareholders also declined to 9,19,561 from 9,73,763 during the period. These changes show movement in institutional and public ownership, but they do not by themselves indicate the future direction of the stock.
| Shareholder Category | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|
| Promoters | 85.00% | 85.00% | 85.00% |
| FIIs | 3.00% | 2.73% | 3.13% |
| DIIs | 7.15% | 8.03% | 7.84% |
| Public | 4.85% | 4.25% | 4.03% |
| No. of Shareholders | 10,93,845 | 9,73,763 | 9,19,561 |
LG Electronics India trades at a P/E of 63.2 and around 14 times book value, while ROE and ROCE stand at 24.7% and 32.3%, respectively. The valuation is therefore elevated relative to the company's book value, making sustained earnings growth important for the stock. The company has also reported no dividend yield despite its history of profits. Investors tracking the LG Electronics India share price should watch whether premiumisation continues to support margins, whether exports expand, how the Sri City capacity contributes to sales and how festive-season demand develops. The gap between FY25 and FY26 profit also makes the pace of earnings recovery important.
LG Electronics India has pointed to geopolitical developments and their possible effect on commodities, currencies and supply chains. These pressures are being managed through localisation, calibrated pricing and operational efficiency, according to the company. The decline in operating margin from 13% in FY25 to 10% in FY26 and the fall in free cash flow from ₹1,319 crore to ₹549 crore are also areas investors can monitor. Consumer demand, seasonal conditions, execution of new capacity and export growth will influence the company's financial performance through FY27.
LG Electronics India's Q1 FY27 performance showed revenue growth of 15.5% and net profit growth of 27.2%, with operating profit rising 26.3%. The company's TTM sales have reached ₹25,575 crore and TTM net profit stands at ₹1,825 crore, while operating cash flow remained strong at ₹1,721 crore in FY26. At the same time, the stock trades at a P/E of 63.2 and around 14 times book value, so future earnings growth and margin performance remain important factors for the valuation. Investors tracking the stock should monitor premiumisation, exports, festive demand, Sri City capacity, operating margins and cash generation as the company progresses through FY27.
LG Electronics India shares were trading at ₹1,701 on August 14, 2026, up 7.74% at 10:35 a.m., based on the supplied market data.
LG Electronics India reported Q1 FY27 revenue of ₹7,233 crore, up 15.5% year on year. Net profit increased 27.2% to ₹653 crore, while operating profit rose 26.3% to ₹904 crore.
The supplied data shows an LG Electronics India P/E ratio of 63.2. The stock is also trading at around 14 times its book value of ₹113.
LG Electronics India's market capitalisation is ₹1,15,442 crore, based on the supplied market data.
The stock's supplied 52-week range is ₹1,300 to ₹1,749.
LG Electronics India's ROE is 24.7%, while its ROCE is 32.3% based on the supplied data.
Promoters held 85% of LG Electronics India as of June 2026, unchanged from the March 2026 quarter.
The main factors being tracked include premiumisation, export growth, B2B expansion, festive-season demand and new production capacity at Sri City.
The supplied data shows a 0% dividend yield. The company reported profits in FY26 but did not have a dividend payout for that year in the supplied financial data.
Investors tracking the stock should monitor earnings growth, operating margins, premium product demand, exports, Sri City capacity, festive-season sales and cash generation, while also considering the stock's elevated valuation.
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