LG Electronics shares drop 4% on 62% fall in net profit; should you buy, sell or hold?

LG Electronics shares see profit booking in trade.

• LG Electronics India Q3 net profit fell 61.58 percent to Rs 89.67 crore.
• Shares dropped over 8 percent after earnings missed expectations.
• ICICI Securities remains positive due to LG's strong market position.

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Shares of LG Electronics India Ltd declined more than 8 percent on Thursday after the company reported a 61.58 percent year-on-year fall in its net profit to Rs 89.67 crore for the December quarter of FY26.

The company had posted a net profit of Rs 233.45 crore in the October-December quarter of the previous financial year, LG Electronics India Ltd said in an exchange filing.

The stock dropped 8.35 percent to Rs 1,392 apiece on the National Stock Exchange (NSE).

It opened the session with a gap-down of 7.16 percent and has been under pressure for the last two trading sessions. By 11:20 am, the stock pared some losses to trade at Rs 1,460.80, down 3.82 percent.

Revenue from operations remained largely flat at Rs 4,114.4 crore in the third quarter of FY26 as against Rs 4,395.53 crore in the year-ago period.

Total expenses stood at Rs 4,038.36 crore during the quarter, down 2.77 percent year-on-year.

This marks the second quarterly earnings announcement by LG Electronics India since its listing in October last year. The company is a subsidiary of South Korea’s LG Electronics Inc.

Commenting on the results, ICICI Securities said the company’s Q3FY26 performance was below expectations due to the impact of the post-festive season and a decline in trade and consumer demand.

The brokerage said LG chose not to cut prices to maintain its brand image, which weighed on margins. It added that higher commodity prices and currency depreciation further impacted margins.

However, ICICI Securities maintained a positive view on the company, citing its leadership position in key categories, reported Mint.

"With strong brand equity, sustained leadership, distribution strength and backward integration, LG is well-positioned to deliver consistent growth and margin resilience over the medium term. Retain BUY with a DCF-based revised target price of Rs 1,746 (earlier Rs 1,875; implied target P/E at 46x FY28E EPS)," the brokerage said.

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