LG Electronics India reported a strong performance for the April-June quarter, with net profit rising 27.2% year-on-year to ₹652.9 crore in the first quarter of FY27. Revenue from operations increased 15.5% to ₹7,233.4 crore, while improved margins helped the consumer electronics maker deliver faster profit growth than revenue.
The results reflect strong demand for home appliances and consumer electronics during the summer season, particularly air conditioners and refrigerators. The company also benefited from a shift towards premium products, higher volumes and better operating leverage. The combination helped LG Electronics India strengthen profitability despite continuing cost pressures in the consumer durables market.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 26.2% year-on-year to ₹904 crore from about ₹716 crore in the corresponding quarter last year. EBITDA margin expanded to 12.5% from 11.4%, marking an improvement of around 106 basis points. The expansion was supported by a better product mix, higher volumes and strong performance in home entertainment.
The June quarter is traditionally important for LG Electronics India because of summer demand for cooling products. Air conditioners and refrigerators saw strong traction, helping the company’s Home Appliances and Air Solutions business. The company has been focusing on premium air conditioners and other higher-value products as consumers increasingly move towards feature-rich appliances.
Premiumisation has become an important growth driver for LG Electronics India. Customers are increasingly opting for larger televisions, premium refrigerators, front-load washing machines and higher-end air conditioners. This trend allows the company to improve its average selling prices while protecting margins, rather than depending only on higher unit volumes.
Home entertainment also provided support during the quarter. Strong demand for premium televisions and larger screens helped the segment contribute to the improvement in profitability. The company has been expanding its premium television portfolio, including large-screen and OLED models, while maintaining its position in India’s competitive television market.
The sharp rise in the share price shows that investors were encouraged by the combination of revenue growth and margin expansion. The company had faced profitability pressure in earlier quarters because of higher commodity costs, currency movements and promotional spending. The latest results suggest that better product mix and operating leverage are beginning to offset some of those pressures.
LG Electronics India has also reaffirmed its growth outlook for FY27. The company expects continued momentum from premium home appliances, larger television screens, exports and the upcoming festive season. It has maintained its target of revenue growth for the financial year and expects to sustain a double-digit EBITDA margin.
The company’s growth strategy is not limited to domestic consumption. LG Electronics India is increasingly positioning India as a manufacturing and export hub under its broader “Make in India” and export strategy. Higher exports can help the company improve capacity utilisation and strengthen its role within LG’s global supply chain.
Manufacturing capacity is another important part of the company’s medium-term plans. LG is expanding its Sri City facility in Andhra Pradesh, with a significant investment planned to increase production capacity. The facility is expected to strengthen supply-chain efficiency and support the company’s export ambitions. Earlier company plans indicated that the expansion would include air-conditioner and compressor production.
The company is also working to increase localisation in its manufacturing operations. Greater localisation can reduce dependence on imported components and help cushion the business against currency fluctuations and supply-chain disruptions. LG has indicated that it wants to steadily increase the domestic component of its manufacturing base.
Analysts have responded positively to the latest results. ICICI Securities highlighted broad-based double-digit growth and said premiumisation helped improve margins. Other brokerages, including Jefferies, Nuvama and Motilal Oswal, have also maintained a positive view following the strong quarterly performance.
For LG Electronics India, the challenge now is to maintain this momentum through the rest of FY27. Summer demand provided a strong start to the year, but the company will need to sustain growth beyond seasonal categories. Festive demand, premium product sales, exports and cost management will therefore remain important for the coming quarters.
The broader consumer durables market is also becoming increasingly competitive, with brands competing aggressively on pricing, technology and product features. LG’s strategy of focusing on premiumisation while retaining a broad product portfolio is aimed at protecting both market share and profitability.
The first-quarter performance nevertheless gives the company a strong foundation for FY27. With revenue growing in double digits, profit rising faster than sales and EBITDA margins improving, LG Electronics India has demonstrated that higher volumes and a premium product mix can translate into stronger earnings.