LG Electronics India Q2 Profit Jumps 25.7% as Appliance Sales Drive Revenue Growth
LG Electronics India reports a 25.7% rise in Q2 profit to ₹489 crore as revenue climbs 19.5% to ₹7,380 crore, driven by strong appliance demand and manufacturing expansion.
Raja Awais Ali
11/5/20264 min read
LG Electronics India Q2 Profit Jumps 25.7% as Appliance Sales Drive Revenue Growth
LG Electronics India reported a 25.7% increase in second-quarter net profit on Thursday, November 5, 2026, as strong demand for televisions, refrigerators, washing machines and air conditioners boosted sales. The results highlight the company's continued position in India's competitive consumer electronics market, supported by rising demand for household appliances, premium products and expanding manufacturing operations.
For the quarter ended September 30, 2026, net profit rose to 4.89 billion Indian rupees ($51.74 million), compared with 3.89 billion rupees in the same period a year earlier. Revenue from operations increased 19.5% to 73.8 billion rupees, reflecting stronger sales across the company's major product categories.
The home appliances and air solutions division, LG India's largest business segment, recorded an approximately 21% increase in sales. The segment includes products such as refrigerators, washing machines and air conditioners, which remain central to the company's business in India.
The performance reflects sustained consumer demand in one of the world's largest consumer markets. Rising disposable incomes, urbanisation and changing household preferences are encouraging more consumers to purchase modern appliances and upgrade to premium products. Demand is also expanding beyond major metropolitan areas into smaller cities and emerging markets, creating additional opportunities for established manufacturers.
LG Electronics India is a subsidiary of South Korea-based LG Electronics Inc. The Indian company was incorporated on January 20, 1997, and has since developed an extensive presence in the country's consumer electronics and home appliances industry. Its business covers home entertainment, household appliances and air solutions, including televisions, refrigerators, washing machines, microwave ovens, air conditioners, water purifiers, compressors, commercial air conditioning systems, monitors, projectors and information displays.
The company operates manufacturing facilities in Greater Noida, Uttar Pradesh, and Ranjangaon near Pune, Maharashtra. It also maintains a nationwide distribution and after-sales service network, supported by service centres and brand stores. This infrastructure gives LG access to customers across different regions and helps it compete in both premium and mass-market product categories.
However, the Indian consumer electronics industry is becoming increasingly competitive. LG faces major competition from South Korea's Samsung, US-based Whirlpool and China's Haier in several household appliance categories. In the air conditioning market, domestic manufacturers such as Voltas and Blue Star also compete for market share, while Sony and Samsung remain important rivals in the television business.
Competition is particularly intense as manufacturers introduce new models, offer discounts and invest in energy-efficient technologies. Consumers are increasingly comparing product prices, electricity consumption, features and after-sales support before making purchasing decisions. This puts pressure on manufacturers to balance competitive pricing with profitability.
LG has focused on premium products, technological improvements and local manufacturing to strengthen its position. Its product portfolio includes energy-efficient appliances, advanced washing machines, large-screen televisions and modern cooling systems. The company is also seeking to expand its reach in emerging markets, where rising household incomes are creating demand for higher-value consumer products.
A major part of its longer-term strategy involves expanding domestic production. LG is investing approximately 50.01 billion rupees, or 5,001 crore rupees, in a new manufacturing facility at Sri City in Andhra Pradesh. The project, announced in May 2025, represents the company's third manufacturing plant in India and is intended to increase production capacity while strengthening its supply chain.
The facility is expected to manufacture air conditioner compressors, refrigerators, washing machines and air conditioners. According to the company's investment announcement, the project is designed to support growing demand in India, improve product availability in southern markets and strengthen the country's role in LG's global manufacturing network.
The investment is also expected to help the company reduce dependence on imported components, lower logistics expenses and limit exposure to foreign exchange fluctuations. Greater localisation could improve operating efficiency and provide more flexibility in managing production costs. The facility is expected to begin operations by the end of 2026, with manufacturing activities expanding in phases.
LG's localisation strategy is particularly important because currency movements, imported component costs and logistics expenses can affect profit margins even when sales are increasing. Producing a greater proportion of products and components locally could help the company manage these pressures more effectively over the longer term.
Commenting on the company's performance, Managing Director Hong Ju Jeon said the results reflected the broader strength of India's consumer durables industry. He pointed to rising disposable incomes, growing aspirations for premium products and deeper market penetration in metropolitan and emerging markets as important factors supporting demand.
LG India has previously outlined ambitious financial targets for fiscal 2027, including revenue growth in the mid-teens percentage range and an early double-digit EBITDA margin. EBITDA, or earnings before interest, taxes, depreciation and amortisation, is an important measure of operating profitability because it provides an indication of business performance before these expenses.
However, achieving sustained margin improvement could prove challenging. Analysts at Elara Securities have identified fiscal years 2027 through 2029 as a crucial period for determining whether the company's structural cost benefits from localisation can outweigh intensifying competition and higher promotional spending.
Although stronger sales can increase revenue, aggressive discounts, marketing expenses and competitive pricing can limit the amount of additional profit a company retains. LG will therefore need to improve manufacturing efficiency and control operating costs while continuing to invest in product development and market expansion.
The company's latest results provide a positive starting point, but maintaining that momentum will depend on its ability to translate higher sales into stronger operating profitability. The Sri City manufacturing project could become an important part of that strategy if it delivers the expected improvements in production efficiency and supply chain costs.
Investors reacted positively to the earnings announcement. LG Electronics India's shares rose approximately 5.1% to 1,777.5 rupees following the results, reflecting a favourable market response to the company's quarterly performance.
Overall, LG Electronics India's second-quarter results demonstrate the strength of demand for household appliances in the Indian market. Net profit increased 25.7% to 4.89 billion rupees, while revenue climbed 19.5% to 73.8 billion rupees. Strong appliance sales, premium product demand and manufacturing expansion are supporting the company's growth strategy. The bigger challenge, however, will be sustaining profitability as competition increases and the company moves into the next phase of its investment and localisation plans.
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