LG Electronics Q2 Results: Net profit slips 27% YoY to ₹389 crore on higher costs despite modest revenue growth

LG Electronics Q2 Results in focus today: LG Electronics India announced its September quarter results (Q2FY26) today, November 13, post market hours, marking its first quarterly earnings since listing.

The company reported a 27.3% year-on-year decline in net profit to ₹389 crore in Q2, compared to ₹536 crore in the same period last year. Sequentially too, net profit was lower, as the home appliance maker reported ₹513 crore in the first quarter of FY26.

Revenue from operations during the reporting quarter stood at ₹6,174 crore, registering a modest growth of 1% year-on-year, while sequentially it was down 0.7% from ₹6,263 crore in the previous quarter.

The company’s modest revenue performance can be attributed to weaker sales during the quarter, as consumers postponed spending until late September, when a broad-based consumption tax reduction came into effect, lowering prices on items ranging from soaps to electronic products.

At the operating level, its EBITDA came in at around ₹547 crore, translating to an EBITDA margin of 8.9%, compared to ₹757.4 crore and a margin of 12.4% in Q2FY25, indicating some pressure on profitability due to higher input and operating costs.

On the expense front, total expenses rose 3% year-on-year to ₹5,729 crore, primarily driven by elevated material costs and other overheads, which together compressed operating margins despite stable revenue growth.

Segment-wise, revenue from the Home Appliances and Air Solution segment remained flat at ₹3,947 crore, while revenue from the Home Entertainment segment rose 3% year-on-year to ₹2,261 crore.

(more to come)

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