LG Electronics India also reported a good start to FY27 as net profit in Q1 rose 27.2 percent year-on-year to ₹652.9 crore from ₹513.3 crore in the same quarter last year. Revenue from operations increased 15.5% to ₹7,233.4 crore, compared to ₹6,262.9 crore in Q1 FY26.
The strong quarterly results of the company were driven by the strong demand for air conditioners, refrigerators, and premium consumer electronics, particularly in the summer season. Also, volume and value-led growth was a key to LG’s business success, the company said.
LG Electronics India Q1 FY27 Results. Metric Q1 FY27 YoY growth. Net Profit ₹652.9 crore 27.2%. Revenue ₹7,233.4 crore 15.5%. EBITDA ₹904.3 crore 26.2%. EBITDA Margin 12.5% Up from 11.4%
EBITDA increased 26.2 percent to ₹904.3 crore, while the EBITDA margin increased to 12.5 percent from 11.4 percent a year ago. So profit growth was not only driven by higher sales but by better operating efficiency at the same time.
Premium Products Drive Growth
The one key factor behind LG India’s performance was increased demand for premium appliances and big screen televisions in India.
Greater premiumisation is currently driven by the company in refrigerators, washing machines, air conditioners and televisions. LG expects this to be a strong growth driver in FY27.
Summer demand for room air conditioners and refrigerators in particular is also strong in the June quarter.
LG Reaffirms FY27 Outlook
Despite the strong Q1 revenue guidance, LG Electronics India continues to be confident in achieving the FY27 growth targets. The company expects continued growth with premium products, the upcoming festive season and exports to remain strong.
The company is also expanding manufacturing capabilities in Sri City in Andhra Pradesh to meet domestic and export demand in India.
LG Electronics India shares rise
Investors were pleased with the earnings announcement. LG Electronics India's shares rose sharply on August 14 with the company’s shares rising as much as 8.1% to ₹1,714 on NSE and 8.1 percent up to ₹1,721 during the day. Investors also appreciated the strong results which gave good news from brokerages as well.
CLSA maintained an 'Outperform' rating and a target price of ₹1,885, with good margins and broad-based growth.
Bottom Line
LG Electronics India's Q1 FY27 performance is also very strong and its profit grew almost twice as fast as revenue.
Premiumisation, strong summer demand, higher volumes and improved operating margins have all helped the company to gain financial strength.
Q1 FY27 net profit: ₹652.9 crore. Profit growth: 27.2%. Revenue: ₹7,233.4 crore. Revenue growth: 15.5%. EBITDA: ₹904.3 crore. EBITDA margin: 12.5%
The key factors to watch in the current quarters will be festive season demand, premium product growth, exports, margins and the company’s manufacturing expansion.
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