LG Electronics India Ltd Q2 Revenue Rises 19.5% to ₹73.8 Billion

LG Electronics India Ltd reported Q2 FY27 revenue of ₹73.80 billion, up 19.5% year on year, with EBITDA increasing 28% to ₹7.01 billion and the EBITDA margin expanding to 9.5%. The September-quarter performance reflected broad-based category growth, premium product mix and festive-season channel preparation.

What did LG Electronics India Ltd report for Q2 FY27?

LG Electronics India Ltd reported its strongest growth quarter since listing, with revenue rising 19.5% year on year to ₹73.80 billion for the quarter ended September 30, 2026. The company said growth was broad-based across key categories and was supported by volume growth, premiumisation, exports and inventory preparation for the festive season.

EBITDA rose 28% year on year to ₹7.01 billion. The EBITDA margin improved by 63 basis points to 9.5%, despite higher commodity prices, foreign-exchange headwinds and festive go-to-market spending. Consolidated EBIT stood at ₹5.78 billion, with an EBIT margin of 7.8%, compared with 7.4% in the corresponding quarter of FY26.

Profit for the period rose to ₹4.89 billion from ₹3.89 billion a year earlier, an increase of 25.7%. Basic and diluted earnings per share were ₹7.21 each for the quarter. The company released the earnings-call audio for the quarter and half year ended September 30, 2026, after its Q2 FY27 results discussion.

Which businesses supported quarterly revenue growth?

LG Electronics India said its Home Appliance and Air Solution business generated revenue of ₹47.72 billion, up 20.9% year on year. Washing machines, refrigerators and room air conditioners each recorded double-digit growth, while dishwashers delivered what management described as a breakout quarter.

The company attributed the wider revenue growth to a mix of higher volumes and demand for premium products. Management also cited exports and festive-season channel preparation as contributors. Its outlook for the December quarter includes demand for premium, energy-efficient and larger-capacity appliances, larger-screen televisions and Information Display orders.

The quarter was the second consecutive period of double-digit revenue growth. Management expects the coming two quarters to outperform the first half, supported by festive and wedding demand, exports and continued category momentum. These are management expectations rather than a revised quantified earnings forecast.

How did LG Electronics India Ltd perform in the first half?

LG Electronics India recorded first-half FY27 revenue of ₹146.13 billion, compared with ₹124.37 billion in the first half of FY26. Profit for the first half increased to ₹11.42 billion from ₹9.03 billion in the year-earlier period.

First-half EBITDA was ₹16.16 billion, up 27.9% year on year, with a margin of 11.1%. First-half basic and diluted EPS were ₹16.83 each and were not annualised. The first-half numbers show that profit growth exceeded revenue growth, consistent with the company’s reported operating leverage and richer product mix.

However, quarterly operating cash flow was negative ₹1.64 billion, compared with positive ₹0.86 billion in Q2 FY26. Working-capital changes were negative ₹6.72 billion during the quarter. The disclosures identify these cash-flow movements but do not provide a separate detailed explanation for each working-capital component in the supplied material.

What is the status of the Sri City manufacturing project?

LG Electronics India said its Sri City, Andhra Pradesh facility remains on schedule to begin commercial compressor production in Q3 FY27 and air-conditioner manufacturing in Q4 FY27, around January 2027. Chief Accounting Officer Atul Khanna said both production lines are expected to be fully operational by the end of FY27.

Capital expenditure was ₹8.70 billion in Q2 FY27, compared with ₹2.30 billion in Q2 FY26, driven by investment in the Sri City project. The company has described the broader capacity-expansion plan as ₹50 billion, aimed at doubling capacity.

Management expects local compressor and AC production to reduce supply-chain risk and foreign-exchange exposure, while supporting margins over time. The planned manufacturing start-up is therefore relevant both to operational resilience and to the company’s cost structure, although no specific financial benefit has been quantified in the disclosed material.

What does the earnings update mean for investors?

The results show that LG Electronics India expanded revenue and margins despite cost and currency pressures. EBITDA growth of 28% outpaced revenue growth of 19.5%, while the 63-basis-point margin expansion suggests that volume leverage and premium mix offset part of the pressure from commodities, forex and festive-season spending.

Management said it took two rounds of selective price increases and reiterated its FY27 guidance for mid-teens revenue growth and an early double-digit EBITDA margin. It aims to outperform both this guidance and the industry, but did not provide a specific margin forecast. Investors will also note the negative quarterly operating cash flow alongside the sharp increase in capital expenditure.

The Board approved entry into Vehicle Solutions, subject to shareholder approval for a memorandum of association change. This approval indicates a planned expansion into another business area, but the supplied disclosures do not specify revenue targets, investment levels or a start date for that business.

Conclusion

LG Electronics India delivered strong Q2 FY27 operating growth, with revenue reaching ₹73.80 billion and EBITDA margin improving to 9.5%. Broad category growth, premium product demand and operating leverage supported profitability, even as commodity prices, currency movements and festive sales expenditure remained cost headwinds.

The next disclosed milestones are commercial compressor production at Sri City in Q3 FY27 and AC manufacturing around January 2027 in Q4 FY27. Investors will also watch the festive-quarter demand trend, working-capital movement, progress toward an early double-digit FY27 EBITDA margin and shareholder approval for the Vehicle Solutions entry.