This article first appeared on GuruFocus .
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Revenue:INR72.33 billion, up 15.5% year over year from INR62.63 billion in Q1 FY26.
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EBITDA:INR9.04 billion, up 26.2% year over year, with EBITDA margin expanding 110 basis points to 12.5%.
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Net Profit:INR6.53 billion, up 27.2% year over year, with PAT margin at 8.9%.
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Home Appliance and Air Solution Segment Revenue:INR55.77 billion, up 13.6% year over year.
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Home Appliance and Air Solution Segment EBIT:Approximately INR6.4 billion, up 13.8% year over year, with margins steady at 11.5%.
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Home Entertainment Segment Revenue:INR16.57 billion, up 22.3% year over year.
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Home Entertainment Segment EBIT:Grew 48.5% year over year, with margin expanding to 19%.
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Working Capital:INR12.56 billion as of June 30, 2026.
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Cash and Bank Balance:INR57.07 billion.
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Capital Expenditure:INR7.36 billion for the quarter, with INR5.88 billion deployed at Sri City.
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Essential Series Sales:Over 0.5 million units sold between January and June.
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Export Reach:Supplying to over 60 countries, with export revenue growing significantly and margin accretive.
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Release Date: August 14, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Revenue grew 15.5% year-on-year to INR72.33 billion, with every major category achieving double-digit growth.
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EBITDA margin expanded by 110 basis points year-on-year to 12.5%, driven by a richer product mix, calibrated price increases, and operating leverage.
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Exports delivered 30% growth, reaching over 60 countries, and are margin-accretive compared to domestic sales.
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The Essential series sold over 0.5 million units in the first half of the calendar year, expanding market reach without diluting margins.
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The new compressor import policy is a positive for LG, as its in-house compressor production provides a cost advantage and supply security.
Negative Points
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Elevated raw material costs and currency headwinds pressured margins, requiring careful cost management and price increases.
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The Sri City plant investment will result in incremental costs in the near term, with benefits expected only after production ramps up.
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The company is at a preliminary stage in the hyperscale data center cooling segment, which is not expected to be a key driver in FY27.
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Dividend payout was reduced to fund the Sri City capex, with no immediate plans to increase payouts, which may disappoint income-focused investors.
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Geopolitical uncertainties, including the West Asia conflict, pose risks to the export business and overall operations.
Q & A Highlights
Q: How sustainable is the strength in Home Entertainment revenue growth seen in Q1, and how much of this growth is coming from volumes versus pricing? A: Sanjay Chitkara, Co-CSMO, stated that the TV business has been consistently growing, delivering 25% growth back-to-back. Growth is coming from both volume and value, driven by consumers upgrading to larger screens. The 55-inch and above segment grew roughly 53% in Q1 and now contributes around 50% of the overall TV business. The company launched 16 new QNED models and introduced Micro RGB TV, with market share touching 26% and OLED share at 59%. He emphasized this is a structural shift towards premium formats, making the growth sustainable and margin-accretive.
Q: What was the growth in the exports business, its share of revenue, and what is the contribution from US and Europe? Also, is there an update on the full-year FY27 export growth target? A: Sanjay Chitkara, Co-CSMO, reported that exports delivered 30% growth in Q1 despite global challenges. The strategy has two pillars: exporting premium products (large-capacity top-freezers, side-by-side refrigerators) to key global markets, and exporting the Essential series to Asia, Middle East, and Africa. The global footprint has expanded from 45-47 countries at IPO to 65 countries. He confirmed exports are margin-accretive compared to domestic sales. While not giving exact numbers, he stated the company is well on track to hit its yearly target, with the Sri City plant expected to meaningfully expand export capacity.
Q: What are the key growth drivers that will help achieve FY27 targets and provide long-term sustainable growth? A: Soonjoo Seo, IRO, highlighted multiple drivers working simultaneously. First, the exports business is scaling significantly, with India integral to LG's Global South strategy. Second, premiumization is occurring across every categorybigger screens in TVs, French door and side-by-side refrigerators, 8kg+ washing machines, and five-star inverter ACs. LG leads in each of these premium segments, so as the market moves upward, it will move toward LG.
Q: Can you explain the government's new compressor import policy and its impact on LG, especially with the new compressor facility coming up? A: Gaganjeet Singh, Chief Manufacturing Officer, explained that the government introduced quantitative restrictions on compressor imports in May 202660% of FY25 levels for reciprocating compressors (refrigerators) and 70% for rotary compressors (ACs). For LG, the impact is very positive. The company already operates a 1 million capacity AC compressor unit at Greater Noida and is adding 2 million capacity at Sri City. For refrigerators, they have 7 million capacity, comfortably above internal requirements. This backward integration gives LG a cost advantage and strengthens price competitiveness, creating an opportunity to build market share.
Q: Can you provide an update on the B2B segment performance in Q1 FY27, including revenue growth, demand trends, and the outlook for the full year? A: Sanjay Chitkara, Co-CSMO, reported strong growth in the B2B business, which is constructed around two product lines: HVAC and information display panels. LED signages recorded their highest-ever quarterly sales, achieving a 36% market share with a 5% gap over the number two player. Demand momentum remains encouraging across government and corporate sectors, with interactive panels leading smart classroom projects. The commercial AC business is expanding its distribution network and product portfolio, recently completing air conditioning for the Prime Minister's Secretariat. The company is confident of delivering a 20% CAGR growth trajectory.
Q: How are you protecting margins given the continuous increase in raw material and component costs, and what is the margin outlook for Q2? A: Gaganjeet Singh, Chief Manufacturing Officer, outlined a multi-level approach to maintain costs. First, localizationin Q1, they localized a major import resin for plastic components, reducing exposure to rising import prices. Second, strategic sourcing with flexibility between local and import sources. Third, multiple sourcing to strengthen negotiation positions. They are also carrying out value engineering to optimize product design and material usage. Calibrated price increases have been taken and absorbed well in the market, with further action only if input costs require it.
Q: Can you share the growth outlook for each category (ACs, TV, washing machines) for the year? Is Q1 a representative number? A: Sanjay Chitkara, Co-CSMO, stated that despite a tough external environment and price increases, the company delivered 15.5% growth with all products delivering double-digit growth. He sees demand remaining healthy across both Home Appliances and Home Entertainment. He believes television and washing machines will significantly contribute to growth in H2, while air conditioners and refrigerators will benefit from premiumization and replacement demand. The growth is broad-based rather than dependent on any specific category.
Q: Can you provide more color on the Essential series performance, its revenue contribution, and how its margins compare to the company average? A: Gurpinderjeet Singh, Head of Financial Planning, stated that the Essential series has exceeded plans, selling more than 500,000 units in the first six months of the calendar year. Importantly, Essential margins are in line with the rest of the portfolio and are not margin-dilutive, achieved through value engineering and smart design. The range has expanded across 225, 251, and 276-liter refrigerator capacities, with plans to launch higher-capacity top loaders in washing machines. The series is exported to 22 countries, making it a key pillar of the Make India Global strategy.
Q: What is the progress on the localization target, and what are the primary bottlenecks to achieving 70% localization? A: Atul Khanna, Chief Accounting Officer, reported that localization was at 55.2% last full year, with consistent improvement of 2-3% annually. The target is to reach 65% over the next three to four years. Key achievements include in-house compressor production for room ACs, local manufacturing of side-by-side refrigerators at Pune, and local sourcing of panel modules. Every percentage point improvement reduces import dependency and currency exposure, acting as a natural hedge against rupee depreciation. The Sri City plant will provide a significant new platform to accelerate localization.
Q: What is the company's readiness for the data center cooling opportunity, and what is
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
