LG Electronics shares see steepest drop since listing as Q2 profit falls

LG Electronics' stock fell as much as 4.97 per cent after a Q2 profit decline, the biggest intraday stock fall since listing this year

Shares of LG Electronics Ltd. fell nearly 5 per cent on Friday after its net profit declined by 27.3 per cent in the second quarter of the current financial year (Q2FY26). 

 

The household appliances maker's stock fell as much as 4.97 per cent during the day to ₹1,590 per share, the biggest intraday fall since listing this year. The stock pared losses to trade 3.42 per cent lower at ₹1,616 apiece, compared to a 0.33 per cent decline in Nifty 50 as of 10:09 AM. 

 

Shares of the company currently trade at 2.1 times the average 30-day trading volume, according to Bloomberg. The counter has fallen nearly 5 per cent since its listing on October 14 this year, compared to a 2.5 per cent advance in the benchmark Nifty 50. LG Electronics has a total market capitalisation of ₹1.1 trillion. 

LG Electronics Q2 results 

LG Electronics India saw its net profit decline by 27.3 per cent due to margin pressures witnessed in Q2FY26. Its net sales in the quarter marginally rose 0.9 per cent to ₹6,170.4 crore in the July-September quarter.

 

The appliance major saw its PBIDT (profit before interest, depreciation and taxes) drop 23.8 per cent to ₹627.3 crore in the quarter. The company said it witnessed margin pressures due to the combined impact of rising commodity prices and incremental investments in festive go-to-market initiatives to support the company’s distributors during tough market conditions.

 

“The H&A segment maintained its market leadership in Q2FY26, recording growth across key categories. While the GST revised rate announcement temporarily deferred consumer purchase, LGEIL’s strong brand equity and resilient distribution network helped strengthen its premium market share,” the company said in its results release.

 

Hong Ju Jeon, managing director at LG Electronics India, said in the release: “H1 of 2026 presented some macroeconomic headwinds including a cool summer, geopolitical challenges, tariffs and forex fluctuations. Despite this, our team in India demonstrated resilience, sales growth, gaining market share and maintaining stable profitability.”

LG Electronics IPO details

LG Electronics shares debuted on the exchanges at a premium of 50 per cent over the issue price. The IPO received a solid response from investors, with the issue being oversubscribed by only 54 times. The ₹11,607-crore mainline IPO comprises an entire offer for sale (OFS) of 101.8 million shares. 

 

The company set the IPO price band in the range of ₹1,080 to ₹1,140. The public issue opened for subscription on Tuesday, October 7, 2025, and closed on Thursday, October 9, 2025.

 

ICICI Securities initiated coverage on LG Electronics India with a 'Buy' rating, citing its premium brand positioning, strong distribution, integrated manufacturing, high share-of-voice, leadership across key white goods categories, and robust returns. The brokerage highlighted LG India’s growing contribution to the parent and sees these strengths driving sustained market share gains and growth.