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LG Electronics India gets draft tax order with ₹573 crore disallowance for FY23Shares of LG Electronics India Ltd ended at ₹1,482.80, down by ₹76.75, or 4.92%, on the BSE.By Jomy Jos Pullokaran  March 23, 2026, 10:40:18 PM IST (Published)2 Min ReadLeading appliance and consumer electronics maker, LG Electronics India Ltd, on Monday (March 23) said it has received a draft assessment order from the Income Tax Department for the financial year 2022–23, proposing disallowances of ₹572.8 crore.

The draft order, dated March 22, 2026, has been issued under Section 144C of the Income Tax Act, 1961, by the Assessment Unit of the Income Tax Department. The total disallowance includes a transfer pricing adjustment of ₹216.89 crore, which the company said is covered under an Advance Pricing Agreement and would become nil.

The company said it will file objections before the Dispute Resolution Panel against the draft assessment order. It added that there is no financial or operational impact arising from the order at this stage. The communication pertains to FY23, and no penalties, restrictions or non-compliances have been identified by the authority, the company said.

Also Read: Elara initiates coverage on LG Electronics India, sees 14% upside

Third Quarter Results

LG Electronics India posted a net profit of ₹89.6 crore for the quarter, down 61.6% from ₹233.4 crore in the corresponding period last year, as subdued post-festive demand and higher input costs weighed on margins. The Korean electronics giant’s revenue fell 6.4% year-on-year to ₹4,114.3 crore, compared with ₹4,395.5 crore a year earlier, reflecting muted demand conditions in the consumer durables segment.

LG Electronics India’s EBITDA declined 42.6% to ₹195.7 crore from ₹340.7 crore in the year-ago quarter, while EBITDA margin contracted 300 basis points to 4.8% from 7.8% last year. In an exchange release, the electronics manufacturer attributed the margin contraction to weaker operating leverage and elevated raw material costs, particularly copper and aluminium, alongside currency headwinds.

The Home Appliances (H&A) segment saw revenue decline to ₹2,788 crore in Q3 FY26 from ₹3,091 crore in Q3 FY25, amid post-Diwali softening in demand, the release added. The company said it avoided aggressive price cuts to safeguard long-term profitability, maintaining higher average selling prices through premium positioning, it added.

Also Read: LG Electronics India shares drop 5% after weak Q3 miss

Shares of LG Electronics India Ltd ended at ₹1,482.80, down by ₹76.75, or 4.92%, on the BSE.Continue Reading(Edited by : Jomy Jos Pullokaran)TagsLG Electronics Indiashare market today