LG Electronics India Research Report

Company Overview

ICICI Securities recently visited LG Electronics India's (LG) plant in Pune, Maharashtra. Our findings suggest that LG remains well-positioned to capitalize on a strong Residential Air Conditioner (RAC)-led upcycle, driven by favorable summer conditions, premiumization, and capacity expansion.

Performance Highlights

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• LG has performed relatively better in January-February 2026 compared to the same period last year.
• The company reiterated its revenue guidance of INR 24.3 billion for FY26, implying a 6% year-over-year growth in Q4FY26, with a double-digit EBITDA margin (implied margin of 12.5% in Q4FY26).
• LG expects the RAC industry to grow by over 40% year-over-year in CY26, driven by a strong summer season and favorable inventory.

Outlook

• We model LG to report revenue and Profit After Tax (PAT) Compound Annual Growth Rates (CAGRs) of 8.3% and 5.0%, respectively, over FY25-28E.
• Maintain BUY rating with a DCF-based revised Target Price (TP) of INR 1,820 (earlier INR 1,746; implied target P/E at 48x FY28E EPS).