LG Electronics India Ltd (LGEINDIA) Q1 FY27 Results Analysis: PAT Surges 27%, EBITDA Margin at 5-Quarter High

LG Electronics India Ltd reported Q1 FY27 numbers with revenue of Rs. 7,233.35 Cr (+15.49% YoY) and PAT growth of +27.20% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

LGEINDIA delivered a strong Q1 with revenue growth of 15.5% YoY and PAT growth of 27.2%, driven by operating leverage and cost control. EBITDA margin expanded to 12.50%, the highest in five quarters, while both segments—Home Appliances and Home Entertainment—posted double-digit growth. Favorable regulatory developments and a solid capex plan for capacity expansion bolster the outlook, with management's FY27 guidance on track.

Key Investment Insights

Key Positives

• Revenue grew 15.5% YoY to Rs.7,233.35 Cr, highest Q1 growth in recent quarters
• PAT grew 27.2% YoY to Rs.652.86 Cr, outpacing revenue growth
• EBITDA margin expanded 106 bps YoY to 12.50%, highest in five quarters
• Home Entertainment segment revenue surged 22.3% YoY with EBIT margin improving 341 bps to 19.09%
• Favorable regulatory outcomes: ITAT order deletes Rs.1,305 Cr tax additions; GST demand of Rs.116.72 Cr dropped
• Maharashtra policy addendum increased incentive entitlement by Rs.176.12 Cr to Rs.881.86 Cr
• Sri City plant on track with compressor line in Q3 FY27 and AC line in Q4 FY27

Risk Factors

• Depreciation grew 23.9% YoY to Rs.111.81 Cr reflecting ongoing capex cycle
• Net material cost as % of revenue increased 20 bps YoY to 68.59%