For the quarter gone by, the company’s revenue was in-line with what the street had anticipated. The 8% revenue growth was driven by demand recovery across segments. The figure was also in-line with the management guidance of high-single-digit to double digit growth, albeit at the lower end of the range.
While the company’s home appliance business grew 6% from last year, the home entertainment business grew by 20% year-on-year led by the rising demand for high-inch TVs.
However, the company’s margins were under pressure, declining by 230 basis points to 11.7% led by higher input costs and weakness in the currency. The implied margin guidance for the quarter was between 12.5% to 13.5%.
For the fourth quarter, the company’s results were a miss on expectations across parameters, barring the topline.
In financial year 2026, LG Electronics India reported a revenue growth of 1%. The management had guided for the year to either be flat or see a modest 2% to 3% growth.
EBITDA margins also stood at 9.8% from 12.8% last year, and also lower than the management guidance of low-double-digits.
Stock Remains Near-Consensus Buy
30 analysts have coverage on LG Electronics India. Of these, 29 of them have a “buy” rating on the stock, while one has a “sell” recommendation. In fact, the stock is trading below its lowest price target on the street as well, which is ₹1,485 by HDFC Securities.
A brokerage firm Way2Wealth Brokers has the highest target on LG Electronics India, at ₹1,950, which implies an upside potential of 28% from Thursday’s closing price.
Shares of LG Electronics India are trading 3.2% lower on Friday at ₹1,480.7. The stock is down 8% in the last one month and has also turned negative on a year-to-date basis. The stock is also down 14% from its listing price of ₹1,715 but remains above its IPO price of ₹1,140.
LG Electronics India was India’s most bid IPO, getting bids worth over ₹4.5 lakh crore.
