LG Electronics' profits fall 27% in Q2 FY26
LG Electronics India just shared its first results since going public last month: profits fell 27.3% to ₹389 crore in Q2 FY26, even though revenue inched up to ₹6,174 crore.
This drop comes as the company faces higher costs and invests more in supporting distributors.
Slimmer margins due to rising material costs
Rising prices for materials and extra spending on distribution led to slimmer margins—EBITDA margin slipped from the previous quarter's margin, which contracted by 350 basis points to 8.9%.
To bounce back, LG is building a third factory and rolling out the new Essential Series for tier-2 and -3 markets.
Festive demand boosts home entertainment sales
Even with these challenges, LG's Home Entertainment sales grew 3%, thanks to festive demand.
Their appliances and air solutions remain market leaders. GST cuts slowed some buying, but made products more affordable overall.
With wedding season and summer coming up, LG expects demand to pick up soon.