LGE India Reaffirms FY27 Targets as Sri City Nears Start

LG Electronics India Limited (LGE India) reaffirmed its FY27 targets of mid-teen revenue growth and an early double-digit earnings before interest, tax, depreciation and amortisation (EBITDA) margin after Q2 FY27 revenue rose 19.5% year on year to Rs 7,380 crore. Its Sri City plant is expected to begin compressor manufacturing in Q3 FY27.

What are LGE India's FY27 growth and margin targets?

LGE India has reaffirmed a FY27 target of mid-teen revenue growth and an early double-digit EBITDA margin. EBITDA margin was 11.1% in H1 FY27, compared with 10.2% in H1 FY26, an improvement of 90 basis points, where one basis point equals one-hundredth of a percentage point.

The reaffirmation follows Q2 FY27 revenue from operations growth of 19.5% to Rs 7,380 crore. EBITDA rose 28.0% to Rs 701 crore and profit after tax increased 25.7% to Rs 489 crore; LGE India said profitability rose despite elevated commodity prices, rupee depreciation and go-to-market investment before the festive season.

H1 FY27 profit and EBITDA increased faster than revenue. Revenue from operations grew 17.5% to Rs 14,613 crore from Rs 12,437 crore in H1 FY26, while EBITDA rose 27.9% to Rs 1,616 crore and profit after tax rose 26.5% to Rs 1,142 crore; the 11.1% H1 EBITDA margin also exceeded Q2 FY27's 9.5% margin.

When will LGE India's Sri City plant start operations?

LGE India expects its third plant at Sri City in Andhra Pradesh to commence operations in Q3 FY27, beginning with compressor manufacturing. The company said the facility will enhance localisation and increase existing capacity for domestic demand and exports.

The plant also supports LGE India's entry into Vehicle Solutions, specifically in-vehicle infotainment (IVI). Automotive infotainment and telematics solutions from LG Korea's global business-to-business (B2B) automotive operation will be manufactured and supplied from Sri City, according to the announcement.

LGE India said its Make-in-India, Make-for-India and Make-India-Global strategy will continue to guide domestic and export expansion. In its FY27 outlook, management identified localisation, calibrated pricing and operational efficiency as mechanisms for managing commodity and currency trends.

The company already operates manufacturing units at Greater Noida and Ranjangaon, Pune. Those facilities make LED televisions, air conditioners, commercial air-conditioning systems, washing machines, refrigerators, monitors, water purifiers and microwave ovens, while Sri City is expected to start with compressor manufacturing in Q3 FY27.

Which businesses drove LGE India's Q2 FY27 growth?

LGE India's Home Appliances & Air Solution (H&A) segment recorded the faster Q2 FY27 revenue growth, rising 20.9% year on year to Rs 4,772 crore. Home Entertainment (HE) revenue rose 17.2% to Rs 2,608 crore, its third consecutive quarter of double-digit growth, and the two segments together accounted for Rs 7,380 crore of quarterly revenue.

H&A posted its highest quarterly growth since listing, with washing machines, refrigerators and room air conditioners reporting double-digit momentum. LGE India also cited breakout dishwasher growth, an expanded LG Essential Series range, and newly launched chest freezers and French Door refrigerators as contributors across mass and premium categories.

H&A segment earnings before interest and tax (EBIT) rose 28.4% to Rs 416 crore, while its EBIT margin improved to 8.7% from 8.2% in Q2 FY26. LGE India attributed the increase to operating leverage from volume growth, which it said offset commodity costs, import-related currency effects and festive-season market spending.

HE EBIT increased 19.9% to Rs 337 crore and margin improved to 12.9% from 12.6%. LGE India said revenue growth and improved B2B Information Display profitability offset elevated panel costs, currency effects on imports and incremental festive investment, while televisions led the segment as consumers upgraded to larger screens.

How do exports and premium products support LGE India's plan?

LGE India said India is positioned as LG's preferred export hub and that it has entered more than 20 new countries since its initial public offering. The company has also expanded its product export portfolio, linking export scale-up to the Sri City capacity and localisation plan.

For the domestic market, LGE India expects energy-efficient air conditioners to continue supporting growth. It also expects French Door refrigerators and dishwashers to sustain premium momentum as consumers shift towards energy-efficient and larger-capacity appliances, while B2B operations are expected to add resilience to margins.

In television, LGE India has added Mini LED models to its large-screen, QNED and OLED range. The company said television value market share and offline television market share reached record highs in Q2 FY27, although it did not disclose a numerical market-share percentage.

Management said Q2 go-to-market investments were intended to ensure channel readiness across key markets for the festive and wedding seasons. The company reported two consecutive quarters of double-digit revenue growth, including 19.5% in Q2 FY27 and 17.5% in H1 FY27, while cautioning that forward-looking statements involve risks and uncertainties.

Conclusion

LGE India's reiterated FY27 outlook follows Q2 FY27 revenue growth of 19.5%, EBITDA growth of 28.0% and double-digit expansion in both operating segments. H&A delivered the faster segment revenue increase at 20.9%, while HE reported the higher EBIT margin at 12.9%, compared with 8.7% for H&A.

The next disclosed milestone is the expected Q3 FY27 start of compressor manufacturing at Sri City, including supply for the new IVI business. Management's ability to pursue mid-teen revenue growth and an early double-digit EBITDA margin will also depend on how localisation, calibrated pricing and operational efficiency address commodity and currency trends during the peak-demand season.