LG Electronics India says dual strategy lifted Q2 sales

In Q2 FY27, LG Electronics India lifted Home Appliance and Air Solution revenue 20.9% year on year to Rs 4,772 crore as premium products and the Essential range grew together, while larger television screens helped Home Entertainment revenue rise 17.2% to Rs 2,608 crore. LG reported double-digit growth across its main appliance categories.

What drove LG appliance growth in Q2 FY27?

LG's appliance growth came from volume and value gains across washing machines, refrigerators, room air conditioners and dishwashers. Home Appliance and Air Solution recorded its highest quarterly growth since listing, with Q2 FY27 revenue of Rs 4,772 crore. Management said all key categories grew at double-digit rates, while dishwashers delivered a breakout quarter.

LG attributed the result to a two-track approach: premium products targeted customers upgrading their appliances, while the Essential range addressed affordability and first-time ownership. The Essential range includes fully automatic washing machines designed to work with low water pressure and double-door refrigerators that adjust cooling to changes in outside temperature. Management said the range had become a contributor to both volume and profit.

LG's Q2 FY27 segment comparison shows that Home Appliance and Air Solution grew faster than Home Entertainment, but Home Entertainment retained the higher segment margin. Earnings before interest and tax, or EBIT, rose in both businesses.

How did LG protect appliance margins?

LG increased Home Appliance and Air Solution EBIT 28.4% year on year to Rs 416 crore, lifting the segment margin to 8.7% from 8.2% despite higher copper, aluminium and plastic costs. Management said it avoided broad price increases, instead managing input-cost pressure category by category and allowing premium products to carry more of the burden while protecting the mass segment.

The 50-basis-point margin increase also reflected operating leverage from higher volumes, meaning operating costs were spread over higher sales. LG added premium French Door refrigerators and chest freezers during the quarter, while Essential products extended its reach to first-time buyers. Management expects some Essential customers to trade up to premium products over time, but it did not disclose a conversion rate.

Product formats described during the call indicate demand at both ends of the appliance market. Fully automatic machines accounted for more than 60% of LG's washing-machine sales after what management called its highest washing-machine growth in eight quarters. Premium multi-door refrigerators, including side-by-side and French Door models, grew more than 50%, while single-door refrigerators also recorded double-digit growth.

Why did LG home-entertainment revenue grow in Q2 FY27?

LG's Home Entertainment revenue increased 17.2% year on year to Rs 2,608 crore in Q2 FY27, its third consecutive quarter of double-digit growth, as consumers bought larger television screens. Management described the shift toward larger displays as a structural change rather than a one-season event, although it did not provide industry market-size data.

Televisions sized 55 inches and above contributed more than half of LG's TV revenue during the festive period discussed on the call. The newly introduced QNED range supported growth in this screen-size category, while 32-inch mass-market televisions also showed a pickup. Management said this combination indicated festive demand across income groups rather than only premium purchases.

Home Entertainment EBIT rose 19.9% to Rs 337 crore and margin increased to 12.9% from 12.6%. Management attributed the 30-basis-point improvement to volume growth and a richer mix of larger screens, despite memory-chip costs, currency pressure and pre-festive go-to-market spending. It also said B2B Information Display had become a second profit engine alongside television, with a steadier margin profile.

What is LG expecting for the festive quarter?

LG expects festive and wedding-season demand in Q3 FY27 to be led by premium appliances, larger televisions and institutional Information Display orders. For appliances, management highlighted French Door and side-by-side refrigerators, washing machines of 8 kilograms and above, and dishwashers. For television, it cited Mini LED, QNED and OLED products positioned at different upgrade price points.

LG entered Q3 with what management described as lean and healthy channel inventory after building working capital for festive and wedding-season stocking. Cash and bank balances were Rs 5,051 crore in September 2026, compared with Rs 5,707 crore at the start of the quarter. The Rs 656 crore working-capital build was intended to support channel readiness and does not represent reported consumer sell-through.

Room air conditioners are a further seasonal variable for the second half. Management said Q2 air-conditioner sales exceeded Q1 despite Q2 being an off-season quarter, citing elevated temperatures across many parts of India. It said roughly 55% of LG's annual room-air-conditioner sales occur in Q4 and expects the coming two quarters to be better than the first half of FY27.

How will Sri City change LG's growth plans?

LG plans to begin compressor manufacturing at its Sri City plant in Q3 FY27, followed by air-conditioner production, to increase localization and support domestic and export demand. The company invested Rs 870 crore in tangible assets in Q2 FY27, compared with Rs 230 crore in Q2 FY26, as work on the Andhra Pradesh facility progressed in line with internal targets.

Management has committed Rs 5,000 crore over the next few years to Sri City, which it said will become its third and most advanced manufacturing base and double existing production capacity. The facility is intended to serve domestic and export markets, including planned local production for the Vehicle Solutions business. LG said its Vehicle Solutions entry will start with telematics and expand in phases.

Exports are another planned demand lever for the appliance segment. LG said it expanded its export market from 50 to 68 countries during the year and had entered more than 20 new export countries since listing. Essential products, large refrigerators and washing machines have begun reaching global markets, though the company did not disclose Q2 FY27 export revenue.

Conclusion

LG's Q2 FY27 performance indicates that appliance growth was not limited to either first-time buyers or premium upgrades. Home Appliance and Air Solution grew 20.9%, faster than Home Entertainment's 17.2%, while both segments expanded EBIT margin. Essential products, premium appliances, larger television screens and Information Display together supported management's account of mix-led and volume-led earnings growth.

The next reported markers are festive-season sell-through, Q4 room-air-conditioner demand and the planned Q3 FY27 start of compressor manufacturing at Sri City. Management retained its FY27 guidance for mid-teens revenue growth and an early double-digit EBITDA margin, while saying it would endeavour to perform above that outlook and the industry.