LG Electronics sees worst intraday fall post listing, slides 8% post Q3

Shares of LG Electronics India Ltd. tumbled over 8 per cent on Thursday after it reported a "weak" quarter, with its net profit plunging 61.6 per cent amid margin pressures in the December quarter of the financial year (Q3-FY26). 

 

The household appliances maker's stock fell as much as 8.3 per cent during the day to ₹1,392 per share, the worst intraday fall since its listing. The stock pared losses to trade 4.5 per cent lower at ₹1,446 apiece, compared to a 0.40 per cent advance in Nifty 50 as of 09:22 AM. 

 

Shares of the company fell for the second straight session and currently trade at 16 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 5.6 per cent this year, compared to a 1 per cent decline in the benchmark Nifty 50. LG Electronics has a total market capitalisation of ₹96,456.95 crore. 

Check Q3 Results today

 

LG Electronics Q3 analysis

Amid margin pressures, LG Electronics India saw its net profit decline by 61.6 per cent in Q3FY26. Subdued sales impacted operating leverage, while increased input costs in copper and aluminium and currency-related headwinds impacted margins. Its net sales in the quarter were down 6.4 per cent to ₹4,114 crore in the October–December quarter.

 

LG Electronics reported a weak set of results, weighed down by subdued performance in the home appliances segment amid post-Diwali demand softness, analysts at Motilal Oswal said in a note. Elevated raw material costs and forex volatility also pressured margins. However, management has guided for a positive outlook for the fourth quarter, citing an expected recovery in demand and an improving export environment, according to Motilal Oswal.

 

“Despite lower-than-expected post-festive demand, LGE India has continued to maintain market leadership across key categories,” it said in a release.

 

“As summer approaches, we are poised to capture demand for compressor products through our two-track strategy — expanding both premium and ‘LG Essential’ line-ups. We remain committed to scaling our high-margin AMC business and leveraging B2B infrastructure opportunities,” Hong Ju Jeon, Managing Director and Chief Sales and Marketing Officer, LG Electronics India, said.

 

“Our third manufacturing plant, on track to being operational by end of year, will accelerate our ‘Make India Global’ plans. These developments underscore our ability to deliver value to customers and shareholders alike, and we remain confident in our long-term trajectory,” he added.

 

Last month, JM Financial initiated coverage on the stock amid strong fundamentals and a consistent return profile. It highlighted the benefits of support from parent LG Group, including annual research and development spending of around $2 billion, which strengthens the firm's technology edge amid intense competition and fast-changing consumer preferences. 

 

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