LG Electronics India reports 27% drop in profit after tax

• Home appliances and air solutions revenue drop slightly while home entertainment division registers an improvement.

LG Electronics India on Thursday reported a 27.3 per cent year-on-year decline in profit after tax (PAT) to Rs389 crore for the second quarter of FY26, down from Rs536 crore in the same quarter last year.

Margins and profitability came under pressure despite a marginal 1 per cent rise in operating revenue to Rs6,174 crore, highlighting headwinds across the electronics and consumer durables sector.

Faces soft demand

The company’s EBITDA fell sharply by 28 per cent to Rs547 crore for the period, with operating margins shrinking by 350 basis points to 8.9 per cent. Segment-wise, home appliances and air solutions revenue dropped slightly to Rs3,948 crore, whereas the home entertainment division registered an improvement to Rs2,226 crore.

The industry overall faced soft demand, as consumers deferred purchases until a GST rate cut on electronics took effect in late September .

Commenting on the results, Managing Director Hong Ju Jeon cited “macroeconomic headwinds, a cool summer, geopolitical challenges, tariffs, and forex fluctuations,” but emphasised that LG Electronics India still achieved “resilient sales growth, gaining market share and maintaining stable profitability.” He reaffirmed the company’s long-term commitment to the Indian market.

The results mark LG Electronics India’s first quarterly report following its high-profile market debut in October, when shares listed at a 50 per cent premium on the NSE at Rs1,710 and closed the day at Rs1,682.8, capping a blockbuster IPO that was oversubscribed 54 times .