LG Electronics India (LGEINDIA) Q2 25/26 earnings summary

Executive summary

• Achieved a successful IPO with INR 4.4 lakh crore and 54x subscription, marking the highest in India since 2008, and listed on NSE and BSE on October 14, 2025, reflecting strong market trust and national identity.

• Q2 FY26 revenue reached INR 61.74 billion, up 1.0% YoY, despite challenging market conditions and deferred purchases ahead of a GST rate cut.

• Maintained strong brand equity and improved market share in key product categories, especially in offline channels.

• Strategic focus on "Make for India, Make in India, Make India Global," premium leadership, expanding B2B, and scaling exports, with new product introductions gaining traction among aspirational and first-time buyers.

• Unaudited financial results for the quarter and half-year ended September 30, 2025, were approved by the Board on November 13, 2025.

Financial highlights

• Q2 FY26 revenue from operations at INR 61.74 billion, up 1.0% YoY from INR 61.14 billion.

• EBITDA for Q2 FY26 at INR 5.48 billion (8.9% margin), down from 12.4% YoY due to commodity prices and festive investments.

• Net profit for Q2 FY26 was INR 3.89 billion, down from INR 5.36 billion YoY; margin at 6.2%.

• Cash and bank balance at INR 42.8 billion as of September 30, 2025.

• Major capital expenditure of INR 5,892.27 million in H1 FY26.

Outlook and guidance

• Anticipates margin improvement through localization, operational efficiencies, and premium product growth.

• GST rate realignment and festive demand expected to boost consumer sentiment and drive recovery in Q3 FY26.

• Medium-term target to increase localization to 70% over the next 3-4 years, supporting margin expansion.

• B2B business and recurring income streams (AMC) expected to drive higher profitability.