LG Electronics India Reports Strong Q1 FY27 Growth, Expands Premium Portfolio and Export Footprint; third manufacturing facility at Sri City

LG Electronics India Reports Strong Q1 FY27 Growth, Expands Premium Portfolio and Export Footprint; third manufacturing facility at Sri City

The Print Times

LG Electronics India Limited reported strong performance for the first quarter of FY2027, with growth across major product categories, improved profitability, continued market leadership and significant momentum in exports.

Addressing the Q1 FY2027 earnings conference, Mr. Soonjoo Seo, Investor Relations Officer, LG Electronics India Limited, said the company delivered growth, profitability and market leadership during the quarter. Revenue from operations stood at INR 72.33 billion, registering a 15.5% year-on-year growth compared with INR 62.63 billion in Q1 FY26.

According to the company, growth was broad-based, with every major category recording double-digit growth, supported by both volume and value. Domestic performance benefited from increasing consumer preference for feature-rich, higher-value and energy-efficient products, while exports provided additional momentum.

Profitability Improves Despite Input Cost Pressure

LG Electronics India reported EBITDA of INR 9.04 billion, compared with INR 7.16 billion in the corresponding quarter last year, representing a growth of 26.2%. EBITDA margin improved to 12.5% from 11.4%, an improvement of 110 basis points year-on-year.

The company attributed the margin improvement to a richer product mix, calibrated price increases across selected categories and operating leverage arising from higher volumes.

Premium and feature-rich categories grew faster than the portfolio average, while selected price increases helped the company recover input cost inflation without materially affecting demand.

Net profit for the quarter stood at INR 6.53 billion, compared with INR 5.13 billion in Q1 FY26, representing a growth of 27.2%, with a PAT margin of 8.9%.

Premiumisation and Essential Series Drive Growth

LG said its premium strategy continued to gain traction during the quarter. Large-screen televisions, French door refrigerators, large-capacity front-load washing machines and five-star-rated air conditioners delivered strong growth.

At the same time, the company’s Essential series continued to expand its reach. LG sold more than half a million Essential series units between January and June, positioning the range as an important part of its strategy to reach the next generation of consumers.

The company said its two-track approach — premium products at the upper end and the Essential series at the entry level — is helping broaden its consumer base while maintaining its position across key appliance categories.

Sri City Manufacturing Facility Progresses

Under its “Make in India” strategy, LG Electronics India’s third manufacturing facility at Sri City, Andhra Pradesh, remains on track.

Compressor production is scheduled to commence in Q3 FY27, followed by room air conditioner production in Q4 FY27. The facility is expected to expand manufacturing capacity, deepen the company’s supply chain and serve as a hub for both domestic supply and exports.

During the quarter, LG Electronics India incurred capital expenditure of INR 7.36 billion, of which INR 5.88 billion was deployed at Sri City. The company expects capitalization to begin from the second half of the current fiscal year as the air conditioner compressor and room air conditioner production lines become operational.

The company also continues to invest in its existing facilities in Pune and Greater Noida to increase capacity, expand the Essential series and scale up premium product manufacturing.

Exports Reach More Than 60 Countries

Exports emerged as another important growth driver for LG Electronics India during Q1 FY27. The company reported its highest-ever quarterly export performance, with supplies now reaching more than 60 countries, including neighbouring markets and developed global markets.

LG has expanded its export model range and introduced premium products in international markets, including side-by-side refrigerators and large-capacity top freezers. The Essential series is also being introduced in neighbouring countries.

The company said the export business is margin-accretive, with export earnings remaining ahead of the domestic business. It also highlighted increasing contributions from B2B and non-hardware AMC businesses, which are strengthening the recurring revenue mix and earnings visibility.

Home Appliances and Air Solutions Segment

The Home Appliance and Air Solution segment reported revenue of INR 55.77 billion, representing growth of 13.6% year-on-year.

Cooling products led the segment, while washing machines also maintained strong momentum. French door refrigerators, 8 kg-plus washing machines and dishwashers recorded particularly strong growth.

Segment EBIT increased approximately 13.8% year-on-year to around INR 6.4 billion, with the EBIT margin remaining at 11.5%.

The company attributed the performance to higher volumes, disciplined pricing and increasing benefits from deeper localisation, despite elevated commodity costs and currency-related headwinds.

Looking ahead, LG said monsoon demand is supporting washing machine sales, while festive stocking has already commenced. The company expects washing machines and refrigerators to continue building momentum, supported by large-capacity Essential series models and a pipeline of new launches.

Home Entertainment Segment Delivers Strong Growth

The Home Entertainment segment also recorded strong performance, led by televisions. LG said consumers continued to move towards larger screens and premium technologies such as OLED and QNED.

The sports season supported television upgrade demand, while early product launches helped the company capture consumer demand.

Segment revenue for Q1 FY27 stood at INR 16.57 billion, registering growth of 22.3%. Segment EBIT increased 48.5% year-on-year, with the margin expanding to 19%.

The improvement was supported by premiumisation and a richer product mix, which improved realisations. Promotional spending also normalised, while the Information Display business operated with a leaner cost structure.

The Information Display business maintained momentum through government and institutional orders, providing an additional growth engine for the Home Entertainment segment.

Festive Season Outlook

LG Electronics India said channel stocking has already begun ahead of Onam, Durga Puja and Diwali. The company expects consumer preference for larger screens and premium televisions to remain strong during the festive season.

The company has expanded its large-screen and premium portfolio and plans further introductions across QNED and OLED technologies.

On the Information Display side, products including electronic blackboards, the second-generation Micro LED and MAGNIT are moving from the launch phase towards scale, with the company expecting these businesses to contribute to sales growth and margin improvement.

Strong Balance Sheet Supports Expansion

As of June 30, 2026, working capital stood at INR 12.56 billion, reflecting strong sell-through, optimised channel inventory and faster receivables realisation.

LG Electronics India reported cash and bank balances of INR 57.07 billion, providing flexibility to fund the Sri City investment through internal accruals without external borrowings.

The company expects the initial investments in new production lines to result in some incremental costs in the near term. However, it expects the ramp-up of these facilities and greater in-house manufacturing to generate efficiencies and offset the initial investment over time.

Building Multiple Growth Engines

LG Electronics India said its Q1 FY27 performance reflected broad-based growth, margin expansion and continued market leadership across major categories.

The company is pursuing a strategy built around “Make for India, Make in India and Make India Global”, combining premiumisation, expansion of the Essential series, increased local manufacturing and a growing export footprint.

With the festive season ahead, a strong product launch pipeline and continued investments in manufacturing capacity, LG said it remains focused on building sustainable growth and creating long-term value for stakeholders.
 

Published at : Oct 09, 2026 07:27 AM (IST)

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