The shares of LG Electronics India dropped nearly 5 percent on November 14 after the company released sharp fall in net profit and contraction in margins for the second quarter of the ongoing financial year 2026.
The newly-listed shares of the Korean electronics brand hit an intraday low of Rs 1,590 apiece, only 0.6 percent away from its 52-week low of Rs 1,581.10 apiece. The stock later made some recovery and was trading around 3 percent lower in the red at Rs 1,624.30 apiece, as seen at 12.45 pm.
LG Electronics Q2 Results:
LG Electronics India on November 13 reported a net profit of Rs 389 crore for the July-September quarter of FY26. This marks a 27 percent year-on-year (YoY) decline from the Rs 535.7 crore net profit reported in the corresponding quarter of the previous financial year.
The firm's revenue from operations meanwhile rose less than 1 percent YoY to Rs 6,174 crore during the quarter under review. Expenses grew 5 percent YoY to Rs 5,728.95 crore, while EBITDA fell nearly 28 percent to Rs 548 crore. EBITDA margin dropped to 8.9 percent.
“Despite a challenging demand environment, LGEIL recorded resilient topline growth. This performance reflects the company’s underlying strength and consumer confidence in brand. The EBITDA margin drop was a result of the combined impact of rising commodity prices and incremental investments in festive go-to-market initiatives, to support the company’s distributors during tough market conditions,” LG Electronics India said in a press release.
Motilal Oswal on LG Electronics India:
Motilal Oswal Financial Services said that the margin contraction was driven by higher commodity costs and increased investments in festive go-to-market initiatives aimed at supporting distributors amid challenging market conditions. It however noted that the firm’s market share in TV, refrigerators, RAC and washing machine had improved during the quarter.
The domestic brokerage has a ‘Buy’ call for the stock. “Margins were impacted by higher input and recycling costs, and festive spends. Looking ahead, demand is expected to stay strong, supported by the GST rate cut and festive momentum. With a two-track strategy of expanding LG Essential for value seekers and introducing new premium ranges, the company aims to capture niche demand and drive growth in underpenetrated markets,” it said.
“After a challenging quarter marked by subdued market conditions, LGEIL reported a contraction in margins. However, the company remains optimistic about the outlook, supported by festive and wedding season demand and its plans to expand in the B2B segment,” it added.
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