LG Electronics India (LGEINDIA) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 saw resilient market share gains in premium categories like OLED TVs and side-by-side refrigerators, despite external pressures such as tariffs, FX volatility, GST changes, and softening demand.

• Strategic focus on Make for India, localization, export growth, and premium portfolio expansion, with plans to double exports in FY27 and ongoing innovation.

• Organizational redesign included new export and AMC business units, a Chief Strategy Officer, and board approval of unaudited Q3 and nine-month results.

• Expansion of manufacturing, launch of BEE-compliant products, and government incentives (INR 705 crore from Maharashtra) reinforced long-term India commitment.

• Results prepared in compliance with Indian Accounting Standards and SEBI regulations.

Financial highlights

• Q3 FY26 revenue from operations was INR 41.14 billion, down from INR 43.96 billion YoY; EBITDA was INR 1.96 billion (4.8% margin), and net profit rose to INR 3,884.47 million.

• Working capital rose to INR 11.3 billion, mainly due to inventory buildup and extended payment terms.

• Cash and bank balance stood at INR 45.05 billion as of Dec 31, 2025.

• CapEx of INR 5,000 crore for the new Sri City plant, funded internally over 4-5 years.

• FY25 revenue was INR 243.67 billion, EBITDA INR 31.10 billion, and profit after tax INR 22.03 billion.

Outlook and guidance

• Q4 FY26 has started strong, with expectations to exceed last year's Q4 performance.

• FY26 guidance: early single-digit revenue growth, double-digit EBITDA margin; FY27 guidance: double-digit revenue growth, sustaining early teen-digit margins, driven by premium launches and export expansion.

• Demand recovery and strong fundamentals are expected to drive growth, with new BEE rating portfolio and summer season boosting compressor-based product sales.

• Company will continue to monitor the impact of new labour codes and update financials as required.