LG Electronics India CWIP reaches Rs 1,785.88 crore in H1

LG Electronics India Limited reported capital work-in-progress of Rs 1,785.88 crore at September 30, 2026, up from Rs 457.363 crore at March 31, 2026, while first-half purchases of property, plant, equipment and intangible assets rose to Rs 1,162.817 crore from Rs 589.227 crore a year earlier.

What drove LG Electronics India’s work-in-progress increase?

LG Electronics India’s capital work-in-progress, or CWIP, increased by Rs 1,328.517 crore over the six months to September 30, 2026. The closing balance of Rs 1,785.88 crore was about 3.9 times the Rs 457.363 crore reported at March 31, 2026, making CWIP the largest reported change among the company’s non-current asset categories during the period.

The filing does not identify the projects, locations, budgets, production capacity or expected completion dates behind the CWIP balance. Property, plant and equipment stood at Rs 1,574.510 crore at September 30, 2026, compared with Rs 1,548.800 crore at March 31, 2026, an increase of Rs 25.710 crore that was much smaller than the rise in work-in-progress.

How much did LG Electronics India spend on capital assets?

LG Electronics India spent Rs 1,162.817 crore on purchases of property, plant and equipment and intangible assets in the half-year ended September 30, 2026. The cash-flow line includes CWIP and intangible assets under development, and was Rs 573.590 crore higher than the Rs 589.227 crore recorded in the half-year ended September 30, 2025.

Net cash outflow from investing activities increased to Rs 992.068 crore from Rs 425.459 crore in the prior-year half. The latest period included an investment of Rs 6.659 crore in equity shares of another company, whereas the comparative period showed no such investment; it also included Rs 165.056 crore of interest income on bank deposits, compared with Rs 136.180 crore a year earlier.

Government-grant proceeds were Rs 12.123 crore in the latest half-year, down from Rs 27.506 crore in the corresponding period of 2025. Proceeds from the sale of property, plant and equipment, including intangible assets under development, were Rs 22.9 lakh, compared with Rs 8.2 lakh, leaving purchases of capital and intangible assets as the largest investing cash-flow item in both periods.

Did operating cash flow cover LG Electronics India’s asset purchases?

LG Electronics India generated Rs 1,634.704 crore of net cash from operating activities in the half-year ended September 30, 2026, exceeding its Rs 1,162.817 crore capital-asset purchase outflow. Operating cash flow was Rs 607.845 crore higher than the Rs 1,026.859 crore reported for the half-year ended September 30, 2025.

Profit before tax rose to Rs 1,532.740 crore from Rs 1,216.810 crore, while cash generated from operations increased to Rs 1,979.960 crore from Rs 1,351.674 crore. Depreciation and amortisation was Rs 234.526 crore, compared with Rs 183.735 crore, and net income tax paid was Rs 345.256 crore, versus Rs 324.815 crore in the previous-year period.

Working-capital movements were mixed in the latest half-year. Inventory consumed Rs 442.562 crore of cash, compared with Rs 38.622 crore a year earlier, while trade receivables released Rs 168.132 crore after using Rs 67.161 crore in the prior-year half; trade payables provided Rs 186.557 crore after consuming Rs 94.599 crore previously.

How did higher capital spending affect LG Electronics India’s balance sheet?

LG Electronics India’s cash and cash equivalents rose to Rs 5,051 crore at September 30, 2026 from Rs 4,476.265 crore at March 31, 2026, despite the larger investing outflow. Net cash increased by Rs 573.930 crore during the latest half-year, compared with a Rs 542.667 crore increase in the corresponding half of 2025.

Bank deposits with an original maturity of less than three months accounted for Rs 4,815.618 crore of the Rs 5,051 crore closing cash balance. Total assets increased to Rs 16,045.436 crore from Rs 13,636.255 crore, with non-current assets rising to Rs 4,302.209 crore from Rs 2,877.918 crore and current assets increasing to Rs 11,743.227 crore from Rs 10,758.337 crore.

Total liabilities were Rs 7,236.364 crore at September 30, 2026, compared with Rs 5,970.699 crore at March 31, 2026. Current other financial liabilities increased to Rs 1,264.918 crore from Rs 519.860 crore, while trade payables due to creditors other than micro enterprises and small enterprises rose to Rs 3,254.660 crore from Rs 3,070.273 crore.

Which LG Electronics India segments reported asset growth?

LG Electronics India reported higher asset balances in both operating segments at September 30, 2026, although it did not allocate CWIP or capital expenditure by segment. Home appliances and air solution division assets were Rs 5,728.761 crore, up from Rs 5,189.614 crore at March 31, 2026, while home entertainment division assets increased to Rs 2,593.405 crore from Rs 1,704.427 crore.

The home appliances and air solution division generated first-half revenue from operations of Rs 10,348.383 crore, compared with Rs 8,856.082 crore a year earlier. Home entertainment revenue rose to Rs 4,265.012 crore from Rs 3,580.884 crore, while segment results were Rs 1,062.776 crore and Rs 653.101 crore respectively, compared with Rs 888.791 crore and Rs 493.453 crore.

Unallocable assets were Rs 7,723.270 crore at September 30, 2026, up from Rs 6,742.214 crore at March 31, 2026. This classification means the reported segment asset movements cannot be directly connected to the Rs 1,785.88 crore CWIP balance, because the filing provides neither a project-level allocation nor a segment-level capital-spending breakdown.

Conclusion

LG Electronics India’s first-half statements show that projects under construction became a substantially larger part of its asset base, with CWIP increasing by Rs 1,328.517 crore in six months. The rise occurred alongside a Rs 573.590 crore year-on-year increase in capital-asset purchases, while operating cash inflow rose by Rs 607.845 crore to Rs 1,634.704 crore.

The next financial statements will show whether any of the Rs 1,785.88 crore CWIP balance is transferred into completed property, plant and equipment. The September 30, 2026 filing does not disclose a project timetable, capital-spending target or segment allocation, leaving the timing and destination of the construction work unresolved.