LG Electronics India Q2 FY26 Results: Revenue ₹61.74 bn

What is happening

LG Electronics is contesting Indian tax authority actions at the Income Tax Appellate Tribunal (ITAT), Delhi bench, in a dispute linked to transfer pricing adjustments around marketing intangibles. The matter also touches on whether the company has a permanent establishment (PE) in India and how much income should be attributed to that presence.

Separately, LG Electronics India Limited (LGEIL) announced its financial results for the second quarter of FY26 on November 13, 2025. The update disclosed revenue, profitability and margin performance for the quarter and the first half of FY26.

The ITAT Delhi dispute and its scope

The case described involves transfer pricing adjustments made by the tax authorities in relation to marketing intangibles. The information provided indicates the dispute is being heard by the ITAT Delhi bench.

In transfer pricing matters, marketing intangibles typically refer to value created through branding and marketing activity, and disputes often center on whether compensation is required between related parties for such value creation. In this instance, the text indicates that the adjustments were made by Indian tax authorities and challenged by LG Electronics.

Permanent establishment finding cited in the record

The provided text includes explicit references to a PE determination. It states that, when the cited factors are combined, they establish the existence of a permanent establishment in India “as per the provision Article 5(1) and 5(2) of the IT Act, 1961,” and further notes that LGEIL constitutes a permanent establishment of the assessee.

It also states, in clear terms, “The Assessee has a Permanent Establishment (‘PE’) in India.” These references point to the centrality of PE status in determining the taxability of income in India and the attribution of income to Indian operations.

Income attribution by the Assessing Officer

A specific income attribution number is mentioned in the text. It states that the Assessing Officer (AO) attributed an income of INR 81,49,553 in addition to the returned income as income allocable to the appellant’s PE in India.

For consistency with the rest of the financial figures disclosed (which are in INR billion), INR 81,49,553 equals approximately ₹0.00815 billion. The amount is presented as an addition to returned income, linked to income attribution to the alleged PE in India.

Company details included in the document

The material contains company identification and address details for LG Electronics India Limited. The address listed includes “(16th to 20th Floor) C-001, Tower D, KK Project, Sector-16 B, Noida - 201301, Dist. Gautam Buddha Nagar, UP (India)” and also references a registered office at “A-24/6, Mohan Cooperative Industrial Estate, Mathura Road, New Delhi - 110044.”

The company’s CIN is provided as “U32107DL1997PLC220109.” The text also includes a website (www.lg.com/in) and an email ID (cgc.india@lge.com), along with contact information associated with Rahul Mishra and Supriya Sundriyal.

Q2 FY26 financial performance: revenue, EBITDA, and PAT

In its results announcement dated November 13, 2025, LGEIL reported revenue from operations of ₹61.74 billion in Q2 FY26. This was described as up 1.0% year-on-year compared with ₹61.14 billion in Q2 FY25.

The company reported EBITDA of ₹5.48 billion for Q2 FY26, with an EBITDA margin of 8.9%. Profit after tax (PAT) for Q2 FY26 stood at ₹3.89 billion.

The same disclosure also provides the prior quarter numbers: revenue from operations of ₹62.63 billion in Q1 FY26, EBITDA of ₹7.16 billion, and PAT of ₹5.13 billion.

Half-yearly snapshot for FY26

Alongside quarterly performance, the company reported half-yearly numbers for H1 FY26. Revenue from operations for H1 FY26 was ₹124.37 billion compared with ₹125.23 billion in H1 FY25.

EBITDA for H1 FY26 was ₹12.64 billion compared with ₹17.15 billion in H1 FY25. PAT for H1 FY26 was ₹9.03 billion versus ₹12.15 billion in H1 FY25.

These figures show that while Q2 revenue was slightly higher year-on-year, profitability for the first half of FY26, as presented in the summary, was lower than the first half of FY25.

Key numbers at a glance

Why the tax dispute matters alongside quarterly results

The tax controversy referenced in the ITAT matter relates to transfer pricing adjustments for marketing intangibles and the treatment of PE in India, including attribution of income. The AO’s cited attribution of ₹0.00815 billion (INR 81,49,553) highlights how PE determinations can lead to additional income being considered taxable in India beyond what was returned.

At the same time, the quarterly results provide a snapshot of operating performance and margins. The juxtaposition of a legal-tax proceeding and a results announcement is relevant because tax outcomes can influence reported profitability and cash flows, while operating performance frames the company’s underlying business trajectory.

Conclusion

LG Electronics’ ITAT Delhi dispute centers on transfer pricing adjustments related to marketing intangibles and a finding referenced in the text that the assessee has a permanent establishment in India, with an AO attribution of INR 81,49,553 (about ₹0.00815 billion). Separately, LG Electronics India reported Q2 FY26 revenue from operations of ₹61.74 billion, EBITDA of ₹5.48 billion and PAT of ₹3.89 billion, with half-year figures also disclosed for H1 FY26. The next concrete developments to watch are procedural updates and orders from the ITAT Delhi bench in the pending matter, alongside subsequent quarterly disclosures from the company.