LG Electronics India Q1 Profit Rises 27% as Revenue Grows

LG Electronics India reported 27.2% year-on-year growth in adjusted profit after tax to ₹653 crore in Q1 FY27, while revenue from operations increased 15.5% to ₹7,233 crore. The performance reflected demand for premium appliances and consumer electronics, with higher exports and better operating margins supporting earnings despite input-cost and currency pressures.

What did LG Electronics India report in Q1 FY27?

LG Electronics India reported broad-based growth in its first-quarter FY27 financial performance. Revenue from operations stood at ₹7,233 crore, up 15.5% year on year, while EBITDA rose 26.2% to ₹904 crore. Adjusted PAT increased 27.2% from a year earlier to ₹653 crore.

The company said demand for premium products across categories supported the quarterly outcome. Air conditioners and refrigerators benefited from summer demand, while major product categories recorded double-digit growth. The reported revenue was, however, 10.18% lower than the preceding quarter, according to the quarterly comparison cited in the available reports.

How did margins improve despite cost and currency pressure?

LG Electronics India improved its EBITDA margin by 107 basis points year on year to 12.5% despite raw-material cost pressure and currency headwinds. EBITDA growth of 26.2% outpaced revenue growth, indicating that the company retained a larger share of sales as operating profit during the quarter.

Gross margin was 31.4%, down 20 basis points year on year. But it was 285 basis points higher sequentially. The gap between gross-margin movement and EBITDA-margin improvement suggests that product mix and operating factors were important to the quarterly profitability trend, although the company continued to face pressure from input costs.

The company has also announced a 5-6% price increase for air conditioners effective October 1 to help mitigate higher input costs. This price action was cited by brokerages assessing the near-term operating environment rather than as part of Q1 FY27 reported financials.

Which businesses and markets supported the growth?

LG Electronics India's Home Entertainment segment was the strongest reported business, with revenue rising 22.3% year on year to ₹1,657 crore and EBIT increasing 48.5%. Premium television demand was a key contributor, with 55-inch and larger televisions accounting for nearly half of TV sales.

Growth was also supported by the Home Appliances business, including demand for air conditioners, refrigerators and washing machines. The company has positioned premiumisation as a central growth driver across these categories, as consumers increasingly purchase higher-value products.

Exports were another support for profitability. Export revenue rose 30% year on year in Q1 FY27 under the company's Make India Global strategy, reaching more than 60 countries. A separate company summary cited exports across 65 countries. The company indicated that export margins are relatively better than domestic sales margins, providing an additional contribution to earnings.

What are brokerages expecting for LG Electronics India?

Brokerage views cited in the reports remain constructive, with attention focused on product mix, localisation, exports and capacity expansion. Motilal Oswal Financial Services expects margins to improve year on year, supported by premiumisation, a richer product mix and higher localisation.

MOFSL estimates revenue, EBITDA and PAT compound annual growth rates of about 14%, 24% and 25%, respectively, over FY26 to FY29. For Q2 FY27, it expects double-digit growth in TVs, washing machines and air conditioners, while refrigerator growth is expected to be in the low single digits.

Nuvama Institutional Equities expects LG Electronics India to deliver another relatively strong quarter against peers, driven by TVs and washing machines as well as price actions to counter cost inflation. JM Financial estimates Q2 FY27 revenue growth of 15% year on year to ₹7,100 crore, EBITDA of ₹680 crore and PAT of ₹480 crore. It forecasts an EBITDA margin of 9.5%, compared with 8.9% a year earlier.

Why do localisation and capacity plans matter for investors?

LG Electronics India held a cash balance of ₹5,707 crore, according to the company information cited in the reports. Its strategic priorities include increased localisation, local compressor manufacturing, Sri City capacity development, B2B expansion and a wider export presence.

These initiatives matter because local manufacturing and sourcing can support supply reliability and potentially reduce exposure to imported inputs. Export growth can also diversify revenue beyond domestic consumer demand. Their financial contribution will depend on execution, capacity utilisation and demand conditions in domestic and overseas markets.

For investors, the key reported evidence is that profitability increased faster than revenue in Q1 FY27 while the company continued investments intended to widen its manufacturing and export base. The next quarterly results will provide a clearer view of whether price increases and premium demand can offset continuing raw-material and currency pressures.

Conclusion

LG Electronics India began FY27 with 15.5% revenue growth and 27.2% adjusted PAT growth, supported by premium product demand, stronger Home Entertainment performance and a 30% increase in exports. The 107-basis-point improvement in EBITDA margin was particularly relevant because it came despite stated cost and currency headwinds.

The next major items to watch are Q2 FY27 demand in televisions, washing machines, air conditioners and refrigerators, along with the October 1 air-conditioner price increase. Investors will also monitor progress on localisation, Sri City capacity, B2B expansion and exports, which brokerages identify as medium-term growth levers.