LGEINDIA

LG Electronics India Limited reported a robust Q4 FY26, with revenue from operations reaching INR80.54 billion, an 8.1% year-on-year increase from INR74.48 billion in Q4 FY25. This marked the highest ever quarterly revenue. Full year FY26 revenue stood at INR246.05 billion, showing a 1.0% growth year-on-year. Q4 EBITDA was INR9.45 billion, translating to an 11.7% margin, while full year EBITDA was INR24.08 billion with a 9.8% margin. Net profit for Q4 was INR6.93 billion (8.5% margin) and for the full year was INR16.85 billion (6.8% margin).

The Home Appliance and Air Solution (H&A) segment recorded Q4 FY26 revenue of INR65.16 billion, growing 5.7% YoY and 133.7% sequentially, driven by strong summer demand and BEE transition. Its EBIT margin was 11.9%. The Home Entertainment segment delivered strong Q4 growth with revenue of INR15.37 billion, up 19.6% YoY and 15.9% sequentially, boosted by large screen TV demand and the Cricket World Cup. Its EBIT margin was 13.4%. LG India maintained market leadership across all major product categories including washing machines, refrigerators, air conditioners, and televisions.

LG's future growth strategy, termed EXCEL, focuses on Export expansion, Capability of new factory production, Expansion of market leadership, brand and new business, and Localization. Export expansion is showing positive results, with large capacity refrigerators already being exported to advanced markets and Essential Series to neighboring countries. The company aims to expand export destinations, diversify its product portfolio, and strengthen its dedicated export organization, viewing exports as a natural hedge against Rupee depreciation and a contributor to profitability.

The expansion of production capability at the third factory plant in Sri City is progressing smoothly, with a total planned investment of INR50 billion. By FY26, approximately INR6.57 billion has already been deployed. Production of compressors is scheduled to start in Q3 FY27, followed by room air conditioners in Q4 FY27. This investment is entirely funded through internal accruals and aims to establish Sri City as a key manufacturing and export hub, enhancing logistics efficiency for the South India business (38-40% of total business) and reinforcing localization.

Q4 FY26 margins were impacted by Rupee depreciation (approx. 1%), elevated commodity prices, and strategic channel promotion investments (approx. 1.1%). However, management expects margin recovery in FY27, targeting improved early double-digit EBITDA margins. Key levers for improvement include continued localization (current rate 55.2%, targeting 1-2% annual increase), operating leverage from higher revenue volumes, a richer product mix, and scaling of high-margin AMC and B2B revenues. Industry-wide price increases are also expected to support margin normalization.

LG is expanding its product portfolio with new categories like chest freezers, fixed-speed room ACs, and large size refrigerators. The Essential Series, launched in October, has seen encouraging response, with 1 lakh washing machine units and 80,000 refrigerators sold in Q4 FY26. The company also introduced a lower than 1-ton capacity AC unit in the Essential Series. Production of double door refrigerators (674L and 790L) has started in the Pune plant, strengthening 'Make-in-India' commitment and supporting mid-teen growth.