LG Electronics India Faces Profit Decline Amidst Rising Costs

LG Electronics India reported a 27.3% decline in net profit for Q2 FY26 to Rs 389.43 crore. Revenue remained flat, but operating margins dropped due to higher commodity prices and festive investments. Despite challenges, the company aims to expand domestically and increase export efforts.

LG Electronics India, a prominent player in the appliance and consumer electronics industry, announced a 27.3% decrease in net profit for the September quarter of fiscal year 2026, reaching Rs 389.43 crore. This marks a drop from Rs 535.70 crore in the same period last year, as per regulatory results.

The company's revenue from operations was nearly unchanged at Rs 6,174.02 crore, compared to Rs 6,113.88 crore a year ago. A significant factor affecting profitability was the reduction in their EBITDA margin to 5.48% from 7.57% year-on-year, attributed to rising commodity costs and spending on festive market initiatives.

Despite ongoing macroeconomic challenges, including a cool summer and geopolitical issues, LG Electronics India's Managing Director Hong Ju Jeon remains optimistic. The company plans to bolster its domestic presence and boost exports as global market conditions improve.

(With inputs from agencies.)