LG Electronics rallies 9%; analysts bullish on margins, market expansion

LG Electronics Q1 results review: LG Electronics’ share price gained nearly 9 per cent on Friday after the company reported its Q1FY27 results, delivering strong performance for the April–June quarter. The consumer electronics major's earnings were supported by strong growth across categories and premiumisation

 

LG Electronics’ counter as of 11:23 AM, was trading 7.97 per cent higher at ₹1,705 . 40 per share on NSE. In comparison, Nifty 50 was down 0.24 per cent at 24,326.65. In intraday trade, the stock gained 8.6 per cent to touch the day's high at ₹1,714 per share.

LG Electronics Q1 FY27 result highlights 

• LG Electronics India saw its net profit rise 27.2 per cent in Q1 FY27 to ₹653 crore on the back of revenue growth and margin expansion.
• The company’s revenue rose 15.5 per cent to ₹7,233 crore in the April-June quarter, led by premium demand across all categories. 
• LG Electronics profit before interest, depreciation and tax (pibtd) was up 26.3 per cent to ₹99 crore in the quarter ended June.

Brokerage view on LG Electronics

ICICI Securities 

 

 

The brokerage noted that LG Electronics reported strong growth across categories, and premiumisation drove margins upwards for LG Electronics India. It added that the company reported strong Q1FY27 with revenue and PAT growth of 15.5 per cent and 27.2 per cent, respectively, Y-o-Y, led by broad-based double-digit growth across categories. 

 

ICICI Securities said that the Ebitda grew 26.2 per cent Y-o-Y, with margin expanding 106 bps to 12.5 per cent, supported by a richer product mix, operating leverage, and cost discipline, despite elevated commodity prices and currency headwinds. 

 

It also added that the home entertainment remained the key outperformer with 22.3 per cent Y-o-Y revenue growth, while home appliances & air solutions delivered healthy 13.6 per cent Y-o-Y growth. 

 

“We note LG's dual strategy of premiumisation and the Essential Series is gaining traction, enabling the company to simultaneously improve its mix and penetrate tier-2/3 markets,” the brokerage said.

 

Motilal Oswal Financial Services 

 

MOFSL highlighted better-than-expected margins, particularly in the Home Entertainment segment. Q1FY27 revenue grew around 15 per cent Y-o-Y to ₹7,233 crore, while Ebitda rose 26 per cent to ₹900 crore, beating estimates by around 8 per cent.

 

Ebitda margin expanded 1.1 percentage points YoY to 12.5 per cent, ahead of MOFSL’s estimate of 11.8 per cent. Adjusted PAT increased 27 per cent Y-o-Y to ₹652 crore, broadly in line with expectations.

 

The brokerage noted that growth remained broad-based across Home Appliances & Air Solutions and Home Entertainment, led by premium products and strong TV demand. Premiumisation, operating leverage, pricing discipline and localisation supported margins.

 

MOFSL said management remains confident of achieving mid-teen revenue growth and an early double-digit Ebitda margin in FY27. The brokerage has maintained a ‘Buy’ rating on the stock.

   

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