LG Electronics India Shares Decline 2% Following Q4 Earnings Disappointment on Narrowed Profit Margins

LG Electronics India Reports Weak Q4 Earnings, Shares Fall 2%

LG Electronics India's shares declined by over 2 percent in Friday's trading session following the release of the company's fourth-quarter earnings. The stock was trading at Rs 1,493.20 on the National Stock Exchange (NSE), down 2.42 percent in intraday trade.

In its latest quarterly results, LG Electronics India reported a consolidated net profit of Rs 693 crore for the January-March quarter of FY26, marking a decline of 8 percent from Rs 755 crore reported in the corresponding period last year. Despite the drop in profit, revenue from operations rose 8 percent year-on-year to Rs 8,054 crore in Q4 FY26, compared with Rs 7,448 crore in the year-ago quarter.

The subsidiary of South Korean electronics major LG Electronics posted EBITDA of Rs 946 crore for the quarter, down 10 percent from Rs 1,048 crore a year earlier. Operating profit margin also contracted to 11.75 percent from 14.07 percent in the corresponding quarter last year. The company attributed the decline in margins to rupee depreciation and elevated commodity prices.

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However, LG Electronics India remains optimistic about gradual margin improvement, aided by continued focus on cost discipline, localisation, and operational efficiency initiatives. The company expects an industry-wide price revision to offset commodity costs and support gradual margin normalisation.

Brokerages have maintained a positive outlook on the stock. Analysts at Motilal Oswal noted that the company's weak performance was due to rising commodity costs and rupee depreciation. Despite this, they expect the market to recover strongly, driven by robust compressor-based product demand. Factoring in the impending price revision, Motilal Oswal maintains a BUY rating on the stock.