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LG Electronics India Ltd (LGEINDIA) Q2 FY27 Results Analysis: PAT Jumps 25.66%, Margin Slips 300 bps QoQ

Cofacto Research Published November 05, 2026 3 min read
Positive

LG Electronics India Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 73,800.45 Cr (+19.53% YoY) and PAT growth of +25.66% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details
Results dateNovember 05, 2026
Revenue (Q2)Rs. 73,800.45 Cr (+19.53% YoY)
PAT (Q2)Rs. 4,893.48 Cr (+25.66% YoY)
EBITDA margin9.50% (+63 bps YoY)
EPS (Q2)Rs. 7.21 (+25.60% YoY)

Quarter Snapshot

Q2 revenue grew 19.53% YoY with PAT up 25.66%, keeping the company ahead of its 'mid-teen' FY27 revenue guidance pace, while H1 EBITDA margin of 10.98% sits within the 'early double-digit' guidance. The margin leg is the watch item: Q2 EBITDA margin fell 300 bps QoQ to 9.50% on a 371 bps rise in the materials ratio amid copper/aluminium inflation and memory-cost pressure on Home Entertainment. The Sri City capex ramp (CWIP up 3.90x) and newly approved Vehicle Solutions Business provide medium-term growth optionality, with cash conversion at 1.43x PAT funding the build without borrowings.

Q2 FY27 Expectations vs Results

DriverExpected before resultsWhat happened
Revenue "ahead vs the soft base" ("five-year-high festive start... against a Q2 FY26 base suppressed by GST-transition purchase deferrals")+19.53% YoY, +17.50% H1Played out
Sequential margin compression vs Q1's 12.5% ("margin gives back some of Q1's 12.5%")9.50% vs 12.50%Played out
Copper/aluminium headwind ("copper... up 46.3% YoY — per pre-call note, web-sourced, dated")Materials ratio 66.43%, +371 bpsPlayed out
Memory pressure on HE ("DRAM +44%/NAND +53% QoQ")HE margin −612 bps QoQ, +30 bps YoYPartially
FX mild headwindNot separately disclosed in the filingNot observable
DRI SCN provisioning ("pending")No provision booked; normalized PAT = reported PATPlayed out (no provision; remains contingent)
Sri City compressor-start confirmation; margin-guidance reiterationNot addressed in the filing — remains open for the callNot observable

Read our full results preview.

Management Guidance vs Delivery

What management saidWhereWhat happenedVerdict
FY27 revenue growth "mid-teen"Reiterated in the Q1 FY27 results presentation ("mid-teen revenue growth")+19.53% YoY in Q2; +17.50% H1On Track
FY27 EBITDA margin "early double-digit"Management FY27 guidance, Q1 FY27 presentation/callH1 EBITDA margin 10.98% (Q2 alone 9.50%) — H1 basisOn Track
Sri City capex Rs.5,000 crore over 4–5 years (~Rs.1,000–1,200 crore/yr), internally fundedManagement guidance, prior earnings callsH1 capex Rs.1,162.82 crore; Q2 implied Rs.426.82 croreOn Track
Sri City compressor production commencing Q3 FY27Management timeline guidance, Q4 FY26 / Q1 FY27 callsNot addressed in the filingToo Early

Key Investment Insights

Key Positives

  • Revenue grew 19.53% YoY to Rs.73,800.45 crore in Q2; H1 revenue grew 17.50% YoY to Rs.146,133.95 crore
  • PAT grew 25.66% YoY to Rs.4,893.48 crore; EPS rose to Rs.7.21 from Rs.5.74 (+25.6% YoY)
  • H1 EBITDA margin of 10.98% vs 10.16% a year ago, within management's 'early double-digit' guidance
  • Home Appliances & Air Solution revenue grew 20.88% YoY with EBIT margin up 51 bps to 8.73%; Home Entertainment grew 17.17% YoY with EBIT margin up 30 bps to 12.92%
  • H1 operating cash flow of Rs.16,347.04 crore was 1.43x PAT (vs 1.14x last year); FCF of Rs.4,719 crore despite capex surge
  • Board approved entry into Vehicle Solutions Business (automotive electronics) at the third Sri City plant
  • Zero borrowings; cash of Rs.50,510.00 crore, up 12.84% from March 2026

Risk Factors

  • Materials consumed rose to 66.43% of revenue (+371 bps YoY and QoQ), consistent with copper/aluminium inflation
  • EBITDA margin compressed 300 bps QoQ to 9.50% from Q1's 12.50%
  • Home Entertainment EBIT margin fell 612 bps QoQ to 12.92%, consistent with memory-cost headwinds
  • DRI-linked SCN proposes duty recovery of ~Rs.153.57 crore (unprovided, contingent); OIO confirmed ~Rs.1.06 crore duty/fine/penalty
  • Inventory build of Rs.24.77 crore in Q2 (vs Rs.9.44 crore year-ago), consistent with channel stocking ahead of price hikes
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.

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