LG Electronics India Ltd (LGEINDIA) Q1 FY27 Earnings Call: Revenue Grows 15.5% YoY, Exports Grow 30% YoY

LG Electronics India Ltd held its Q1 FY27 earnings call on August 13, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Broad-Based Double-Digit Growth With Margin Expansion

• Revenue of Rs.72.33 billion in Q1 FY 2026-2027, up 15.5% YoY from Rs.62.63 billion in Q1 FY 2025-2026, with all key product categories delivering double-digit growth.
• EBITDA of Rs.9.04 billion (margin 12.5%), up 26.2% YoY; margin improved 110 bps from 11.4% in Q1 FY 2025-2026, driven by richer product mix, calibrated price increases, and operating leverage.
• Net profit (PAT) of Rs.6.53 billion, up 27.2% YoY from Rs.5.13 billion in Q1 FY 2025-2026; PAT margin at 8.9%.
• Working capital of Rs.12.56 billion as of 30 June 2026; cash and bank balance at Rs.57.07 billion, funding the Sri City capex entirely through internal accruals with no external debt planned.
• Capital expenditure of Rs.7.36 billion in Q1 FY 2026-2027, of which Rs.5.88 billion was deployed at Sri City; capitalisation of aircon compressor and room AC lines expected from H2 FY 2026-2027.

Home Entertainment Surges; Appliances Hold Steady

• Home Appliance & Air Solution segment revenue of Rs.55.77 billion in Q1 FY 2026-2027, up 13.6% YoY; segment EBITDA of ~Rs.6.4 billion (~13.8% growth) with margins steady at 11.5%.
• Home Entertainment segment revenue of Rs.16.57 billion, up 22.3% YoY; segment EBITDA surged 48.5% YoY to a margin of 19%, driven by premiumisation, normalised promotional spends, and a leaner cost structure in information display.
• TV revenue grew 25% in Q1 FY 2026-2027 on both volume and value; the 55-inch+ segment grew 53% and now contributes ~50% of TV sales, while overall TV market share reached 26% (OLED share 59%).
• Premium products led growth across categories — French door refrigerators, 8 kg+ washing machines, dishwashers, and 5-star rated ACs — while the LG Essential Series crossed 0.5 million units sold between January and June 2026.
• Management noted the gap with the #2 player in TVs is widening, describing the growth as "structural and sustainable beyond seasonality."

Essential Series Scales Affordably; TV Portfolio Refresh Underway

• Essential series sold over 5 lakh units in the first six months of calendar year 2026 (spanning Q4 FY 2025-2026 and Q1 FY 2026-2027), driven by first-time buyers in tier 2 and 3 cities; margins are in line with the rest of the B2C portfolio — not margin dilutive.
• Refrigerator range expanded under Essential with capacities of 225, 251, and 276 litres; management plans to launch higher-capacity top-loading washing machines under the same series.
• New TV portfolio of 16 QNED models, Micro RGB TVs, and AI copilot features (Microsoft Copilot, Google Gemini) launched to drive premium mix in Home Entertainment.
• Essential series exported to 22 countries across Asia, Middle East, and Africa, supporting a Make in India global strategy alongside premium-product exports.
• Management expects televisions and washing machines to contribute significantly in H2 of calendar year 2026, while air conditioners and refrigerators benefit from premiumisation and replacement demand in FY 2026-2027.

Exports Grow 30%; Global Footprint Reaches 65 Countries

• Export business grew 30% in Q1 FY 2026-2027, achieving the highest-ever quarterly export performance; margins are accretive and ahead of the domestic business.
• Global footprint expanded to 65 countries, up from 45–47 at the time of the IPO, now including developed markets; management targets a significant full-year FY 2026-2027 export increase (quantified target not disclosed).
• Export strategy rests on two pillars: premium products (large refrigerators) and the Essential series (refrigerators, washing machines) shipped to Asia, Middle East, and Africa.
• LG now supplies to 61 countries as of the Q1 call, with an expanded model range; the Sri City plant is expected to open new geographies once compressor and RAC production commence.
• Management cited "scaling exports with India as a key part of LG's global South strategy" as one of two key growth drivers for achieving FY 2026-2027 targets.

Sri City Plant On Track; Compressor Import Policy Benefits LG

• Sri City, Andhra Pradesh plant on track: compressor production to commence in Q3 FY 2026-2027, room air conditioner production in Q4 FY 2026-2027; total capex of Rs.5,000 crore funded entirely from internal accruals.
• Localisation rate for FY 2025-2026 was 55.2%, confirmed by CEO Atul Khanna; target of 65% over the next 3–4 years (by FY 2029-30 horizon), with annual improvement of 2–3%. Management highlighted this as "a structural margin hedge against rupee depreciation."
• On May 8, 2026, the Government of India introduced quantitative restrictions on compressor imports: up to 60% of FY 2024-2025 volumes for reciprocating (refrigerator) compressors and 70% for rotary (AC) compressors.
• LG's existing local compressor capacity — 1 million rotary at Greater Noida and 7 million reciprocating at Greater Noida — provides supply security and cost advantage; a planned addition of 2 million rotary at Sri City (period unspecified) is expected to strengthen price competitiveness and enable market share gains in refrigerators and ACs.
• Key localisation achievements include in-house compressor production for room ACs and local manufacturing of side-by-side refrigerators at the Pune plant; LG also localised a major import resin for plastic moulding in Q1 FY 2026-2027.
• Data center cooling: mid-scale business is already live with multi-V VRF and chiller systems; the hyperscale segment is at a preliminary stage with partnerships being evaluated — not material for the FY 2026-2027 outlook.

B2B Momentum; Broad-Based Demand Expected Through Festive Season

• B2B segment delivered strong growth in Q1 FY 2026-2027; LED signage recorded highest-ever quarterly sales with 36% market share and a ~5 percentage point gap over the #2 player.
• Commercial AC expanded its distribution network for single-CAC cassette units and product portfolio to 2–10 TR 4-star ACs; recently completed air conditioning for the Prime Minister Seva Teerth project.
• Management expressed confidence in maintaining ~20% CAGR growth trajectory (past performance from FY 2021-2022 to FY 2024-2025, with guidance going forward — period unspecified for forward guidance).
• For Q2 FY 2026-2027, management sees a healthy demand outlook: monsoon lifting washing machine sales, festive stocking already begun, and prices held firm across the industry.
• Dividend policy under review: management justified the current lower payout due to the transformational Rs.5,000 crore Sri City investment; commitment to review as capex phases deploy and cash generation strengthens — no external debt planned.
• Raw material cost increases were managed through localisation, strategic sourcing, value engineering, and a calibrated price increase taken in Q1 FY 2026-2027 that was absorbed well; further increases only if input costs warrant.