LG Electronics Q2 Results: Net profit slips 27% YoY to ₹389 crore on higher costs despite modest revenue growth

LG Electronics India Q2 Results in focus today: LG Electronics India announced its September quarter results (Q2FY26) today, November 13, post market hours, marking its first quarterly earnings since listing.

The company reported a 27.3% year-on-year decline in net profit to ₹389 crore in Q2, compared to ₹536 crore in the same period last year. Sequentially too, net profit was lower, as the home appliance maker reported ₹513 crore in the first quarter of FY26.

Revenue from operations during the reporting quarter stood at ₹6,174 crore, registering a modest growth of 1% year-on-year, while sequentially it was down 0.7% from ₹6,263 crore in the previous quarter.

The company’s modest revenue performance can be attributed to weaker sales during the quarter, as consumers postponed spending until late September, when a broad-based consumption tax reduction came into effect, lowering prices on items ranging from soaps to electronic products.

Its cooling appliances division was impacted by early rains and lower temperatures, despite a sharp reduction in prices following the cut in indirect taxes.

At the operating level, its EBITDA came in at around ₹547 crore, translating to an EBITDA margin of 8.9%, compared to ₹757.4 crore and a margin of 12.4% in Q2FY25, indicating some pressure on profitability due to higher input and operating costs.

On the expense front, total expenses rose 3% year-on-year to ₹5,729 crore, primarily driven by elevated material costs and other overheads, which together compressed operating margins despite stable revenue growth.

Segment-wise, revenue from the Home Appliances and Air Solution segment remained flat at ₹3,947 crore, while revenue from the Home Entertainment segment rose 3% year-on-year to ₹2,261 crore.

LG Electronics share price trend

The company’s shares made a blockbuster debut on Dalal Street on October 14, listing with a massive 50% premium at ₹1,710 over the issue price of ₹1,140 apiece. This also marked the largest mainboard issue of over ₹10,000 crore to list with a 50% premium so far this year.

Soon after its market debut, domestic brokerage firms issued optimistic outlooks on LG Electronics India, initiating coverage with positive ratings and upbeat price targets, citing strong industry tailwinds, the company’s leadership position, and its export potential.

Though the company’s long-term growth prospects appear bright, the shares have come off sharply from their listing highs, slipping to ₹1,673. Even after a partial recovery in recent sessions, the stock still trades about 5% below its listing high of ₹1,749 apiece.

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