LG Electronics India posts 26% Ebitda jump, stock surges 10%

Shares of LG Electronics India surged 10% on Friday after the company reported a 26.2% jump in consolidated Ebitda to Rs 904 crore for the June quarter, with revenue rising 15.5% to Rs 7,233 crore. The earnings beat lifted the stock above Rs 1,700 for the first time since its listing in October and raised confidence that the earnings slump of FY26 may be ending. Home entertainment was the standout, with revenue up 22% and Ebit surging nearly 50%.

Profit had fallen year-on-year in every quarter of FY26, hit by commodity inflation, currency headwinds and weak summer demand. In Q1FY27, a richer product mix, calibrated price hikes and operating leverage more than offset higher commodity costs. LG's Essential Series, aimed at value-conscious buyers in tier-II and tier-III cities, sold over 0.5 million units in the first half of 2026. The company's Sri City facility in Andhra Pradesh will add 2 million units of AC compressor capacity by Q3FY27.

Management expects to sustain growth around 20%, driven by washing machines, TVs, premium appliances and replacement demand. Motilal Oswal Financial Services has raised its target price to Rs 2,000 per share from Rs 1,800, valuing the company at 45x estimated FY28 earnings. However, demand remains contingent on weather and economic growth, while commodity prices and currency moves could pressure margins.