LG Electronics India

“There could be a marginal fluctuation quarter to quarter, but we will definitely hit our yearly target this year and we are very well on track to achieve this.”

“Compressor production commenced in Q3 FY27, followed by room air conditioner production in Q4 FY27.”

“We expect capitalization to begin from the second half of this fiscal year as the aircon compressor and room air conditioner lines come on stream.”

“And lastly, our Sri City plant, which is a central to this ambition for the export, we are starting compressor production in the beginning of this calendar year and followed by RAC production.”

“Alongside Sri City, we continue to invest in our two existing production facilities in Pune and Greater Noida to scale up capacity, adding new family size to the Essential series and ramping up premium products manufacturing to meet demand for the coming years.”

“Post commencement of this plant, we will meaningfully expand our export capacity and we will open newer geographies and turning our export from an opportunity into a scale.”

“This is a transformational investment that will almost double our manufacturing capacity, significantly strengthen our export capabilities, and position LG India as a future global export hub.”

“Sri City will expand capacity, deepen our supply chain, and serve as a dedicated hub for both domestic supply and export.”

“So which is expected to provide further growth momentum and we have recently done air conditioning of a very prestigious site of Prime Minister ‘Seva Teerth’.”

“Between January to June, LG sold over half a million of Essential series range.”

“We now supply to 61 countries, including both neighboring and key global markets.”

“We have delivered our highest ever quarterly export performance.”

“The segment revenue for Q1 FY27 stood at INR55.77 billion, a growth of 13.6%.”

“Segment revenue for Q1 2027 stood at INR16.57 billion with a robust growth of 22.3%. Segment EBIT grew an exceptional 48.5% year-on-year with margin expanding to 19%.”

“Looking at the second quarter demand outlook, the picture stays healthy. The monsoon is lifting washing machine sales, festive stocking has already begun, and prices across the industry have held firm as higher input costs were passed on in a calibrated way.”

“Taking and looking ahead into Q2 outlook for Home Entertainment, channel stocking is already underway ahead of Onam, Durga Puja, and Diwali”

“We see demand remaining very healthy across both Home Appliances and Home Entertainment in this financial year.”

“The improvement in affordability including due to GST cut last year has further supported this demand.”

“So the growth will be significantly contributed by these 2 product category, while air conditioners and refrigerator should also be benefited from this premiumization and replacement demand.”

“We did it through a better product mix and calibrated price increases, not by stepping back from the market.”

“EBITDA for the quarter stood at INR9.04 billion as compared to INR7.16 billion, a growth of 26.2% with an EBITDA margin of 12.5% as compared to 11.4% in Q1 FY26, an improvement of 110 bps points year-on-year.”

“And importantly, this growth is margin accretive, exports continue to earn ahead of domestic business, which makes this one of the more attractive levers we have.”

“While these initiatives will result in some incremental costs in the near term, we expect the ramp- up of these production lines to drive greater efficiencies with the benefits of in-house manufacturing more than offsetting the initial investment.”

“Segment EBIT grew around 13.8% year-on-year to about INR6.4 billion with margins steady at 11.5%.”

“Working capital as of 30th June 2026 stood at INR12.56 billion.”

“Our cash and bank balance stood at INR57.07 billion, giving us the flexibility to fund the Sri City investment through internal accruals without external borrowings.”

“This reflects a strong sell-through season with optimized channel inventory and faster realization of receivables, giving our trade partners confidence as we head into the festival season.”

“Preserving our internal accruals to fund this investment entirely without any external debt is a conscious and deliberate decision that we believe is in the best long-term interest of our shareholders.”

“The new TV ranges includes 16 new models of QNED TV. We also introduced Micro RGB TV, which is a very high-end display technology.”

“In washing machine, we are planning to launch higher capacity top loader as well.”

“One approach we are evaluating is partnering with established data center distributors and integrators who already have reach and installed multiple projects.”

“We are actively pursuing further opportunities in new business segments to build the next set of growth engines.”

“Under Essential Series, we have expanded the refrigerator range across 225, 251, and 276 liters capacities.”

“As our Sri City investment progresses in a phased manner and our cash generation strengthens further through revenue growth and margin improvement, we definitely plan to review our dividend plans.”

“This year's dividend decision was made after careful consideration of our capital expenditure and long-term growth priorities.”

“We would like to assure our shareholders that this is not a permanent position.”

“So import of compressors are restricted against the financial year 2024-2025 up to 60% for the reciprocating compressors which we use for refrigerators and around 70% for the rotary compressor which we use for air conditioners. For LG, the impact is very positive and will help to increase our business revenue and margins by leveraging our local compressor production capabilities.”

“In an environment where the rupee has faced depreciation pressure, our localization rate acts as a natural hedge, protecting our margins from the currency headwinds.”

“We are expanding into additional geographies and now supplying to over 60 countries despite the ongoing West Asia conflict.”

“On profitability, maintaining our margins despite elevated commodity costs and currency headwinds is a significant achievement.”

“We grew revenue 15.5% year-on-year with EBITDA margin at 12.5%, up 1.1 percentage point year-on-year and 0.8 percentage point sequentially.”

“Revenue from operations for Q1 FY2027 stood at INR72.33 billion, representing growth of 15.5% year-on-year over INR62.63 billion in Q1 of FY26.”

“Net profit for the quarter stood at INR6.53 billion as compared to INR5.13 billion, a growth of 27.2% with PAT margin of 8.9%.”

“LG Electronics, as you know, is separately in discussions with several global corporates that may benefit our India business in future.”

“The increasing contribution from B2B and non-hardware AMC businesses are building a stronger recurring revenue mix, improving earnings visibility and stable earnings.”