LG Electronics share price slumps 8% after weak Q3 results. Should you buy or sell?

Shares of LG Electronics India dropped more than 8% during the session on Thursday, February 12, after the appliance and consumer electronics manufacturer reported a staggering 61.58% year-on-year decline in its net profit to ₹89.67 crore for the December quarter of FY26.

The net profit for the same October-December period last year stood at ₹233.45 crore, according to LG Electronics India Ltd's regulatory filing.

In the December quarter of FY26, the company’s revenue from operations remained nearly unchanged at ₹4,114.4 crore, compared to ₹4,395.53 crore during the same time a year ago.

The total expenses reported by LG Electronics India amounted to ₹4,038.36 crore in the third quarter of FY26, reflecting a decrease of 2.77% year-on-year.

Since its debut on the stock market in October of last year, this is the second quarterly results announcement for LG Electronics India, a subsidiary of South Korea's LG Electronics Inc.

In the most recent December quarter, LG Electronics India's revenue from its home appliance and air solutions (H&A) segment fell by 9.8% to ₹2,788.09 crore, compared to ₹3,090.90 crore from the same period last year.

According to the company's earnings report, this revenue drop was attributed to a 'softening demand' following Diwali.

LIC shares: Buy or sell?

ICICI Securities noted in its report that LG Electronics' Q3FY26 results were below expectations due to effects from the post-festive season and a decline in trade and consumer demand. To maintain brand image, LG opted against price reductions, which it believes adversely affected LG's margins. Additionally, margins suffered further due to rising commodity prices and currency depreciation.

Nonetheless, the brokerage remains optimistic about the company, highlighting its ongoing market leadership in essential categories—backed by strong branding, premium positioning, and a comprehensive distribution network. In addition, LG has increased its share in the offline TV market, reinforcing its leading position. Furthermore, the Sri City plant is on schedule to commence operations by Q3FY27. Analysts at the brokerage believe this will improve LG's supply chain efficiency, allowing for quicker market access and better product availability. Lastly, the company is still prioritising the expansion of its AMC business and enhancing its B2B operations.

“With strong brand equity, sustained leadership, distribution strength and backward integration, LG is well-positioned to deliver consistent growth and margin resilience over the medium term. Retain BUY with a DCF based revised TP of ₹1,746 (earlier ₹1,875; implied target P/E at 46x FY28E EPS),” said the brokerage.

Motilal Oswal Financial Services said LG reported a weak set of results due to weak performance in the home appliances business, which has seen demand softness post-Diwali. "Elevated raw material prices and forex volatility hit margins. Management guides a positive outlook for 4Q, with recovery in demand and an improved export environment," said the brokerage as it maintained a 'Buy' rating on the stock.

However, MOSL added that it will review the assumptions following the conference call today.

LG Electronics share price today

LG Electronics share price today opened at ₹1,421.05 apiece on the BSE. The stock touched an intraday high of ₹1,492.95 per share and an intraday low of ₹1,394.25 per share.

Anshul Jain, Head of Research at Lakshmishree, highlighted that LG Electronics shares have corrected nearly 24% within 67 days of listing, before staging a recovery that retraced 50% of the decline to near 1,530.

After the quarterly earnings, the stock witnessed a gap-down opening. However, Jain said that the prices are showing relative strength from lower levels near 1,400. He believes that the sentiments are likely to remain subdued until the gap around 1,520 is filled. The 1,400–1,520 zone will act as a key trading range in the near term.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.