MUMBAI: LG Electronics India expects growth in the mid-teens in FY27 even as the broader market struggles with raw material price fluctuations, currency depreciation and inflation.
“Looking at FY27, we are very much confident of delivering mid-teen digit growth,” Sanjay Chitkara, director and co-chief sales and marketing officer, LG Electronics India, told Mint on Thursday.
LG Electronics India reported 1% growth in revenue to ₹24,605 crore in FY26 and an 8.2% decline in net profit to ₹693 crore. Revenue from operations rose 8.1% year-on-year to ₹8,054 crore in Q4, the highest for a quarter, according to an exchange filing on Thursday.
The record quarterly profit came after broad-based demand recovery as the company rolled out products in the premium and budget-friendly segments. LG makes home appliances including air-conditioners, refrigerators and microwave ovens. Its home entertainment portfolio includes televisions and audio products.
LG has increased prices in tandem with the industry after India tightened energy efficiency ratings of air-conditioners in January and raw material costs rose following the outbreak of the war in West Asia.
“We have taken a price increase of roughly around 7% on all appliances products, including air-conditioners,” Chitkara said.
The company increased prices again in April after geopolitical tensions and currency fluctuations affected aluminium and copper supplies. Prices of copper, a key imported input, are currently $14,000 per tonne compared with $9,500 per tonne in May 2025.
“We are very watchful of the situation and we'll take appropriate action,” Chitkara said about further price hikes.
The company is increasing localization to mitigate currency fluctuations, leveraging the South Korean parent company’s global scale advantage for raw material procurement and focusing on efficient inventory management to prepare for FY27. The company said it manufactures 95% of its products in India and 55% of the components are sourced locally.
Ebitda margin
LG Electronics India’s earnings before interest, taxes, depreciation and amortization (Ebitda) dipped 9.8% to ₹945 crore in Q4, while the Ebitda margin contracted to 11.7% from 14.1% due to rupee depreciation and elevated commodity prices. The full-year Ebitda margin narrowed to 10.8% from 14.1% in the previous year. The company is confident of improving the Ebitda margin this year.
“We would do better than our previous year margins and we are expecting our margins to be in the early double digits for FY27,” said Atul Khanna, chief accounting officer, LG Electronics India.
As part of its three-pillar strategy of Make in India, Make for India and Make India Global, the company launched the LG Essential Series, a lineup of home appliances specifically designed, priced and crafted for Indian households, which it will also sell in other countries.
“Now we are starting the Essential series export to 22 countries in the Middle East, Asia, Africa and Southeast Asia,” Khanna said.
LG’s production facilities in India have helped the company tide over the government’s recent restrictions on the import of compressors for air-conditioners and refrigerators.
“LG India already has strong localization,” Chitkara said. “We have sufficient production for our captive use, and we also have excess production which we sell to some other brands in India.”
He said that the plant under construction in Sri City will add additional compressor capacity. The new plant in Andhra Pradesh is the company’s third in India and is expected to start operations by the end of 2026.
Shares of LG Electronics India, which listed after an IPO in October, fell as much as 4.45% on the BSE on Friday following the decline in Q4 profit. Some analysts are bullish on the stock.
“The stock’s category leadership, superior return ratios, self-funded growth model and access to global-scale R&D position it well to deliver sustained earnings growth over the medium term,” analysts at LKP Securities said in an April report.
