LG Electronics India’s latest quarterly results reveal a strategic pivot towards higher-margin segments, including premium TVs, exports, localisation, and services, signalling a shift towards a more resilient profit base amid challenging market conditions.
LG Electronics India’s latest quarterly numbers suggest a broader change in how the company is making money. Premium televisions, exports, localisation and services are contributing more to profit, even as the business remains anchored in home appliances and consumer electronics. The shift came into focus after the company reported Q1 FY27 results that showed steady sales growth and a sharper rise in earnings than in revenue.
For the quarter, revenue from operations rose 15% year on year to ₹72.33 billion, while operating profit increased 26% to ₹9.04 billion and net profit climbed 27% to ₹6.53 billion. On a sequential basis, however, results eased from the previous quarter, when revenue was ₹80.54 billion, reflecting the usual post-festive moderation in demand. LG Electronics India’s shares jumped in early trade after the announcement, with investors responding to the stronger profit mix and the company’s higher-margin segments.
A key driver was the home entertainment division, where sales grew 22.3% from a year earlier and EBIT, or earnings before interest and tax, rose faster than revenue. The division’s EBIT margin improved to 19% from 15.7% a year earlier, helped by premiumisation, demand for large-screen televisions and products such as OLED and QNED sets. Lower promotional spending and a wider product range also supported margins. The company has been leaning on this premium television mix as it prepares for festive-season demand and further launches.
The profit story is not limited to TVs. LG Electronics India is expanding exports, with the Sri City plant expected to support both domestic supply and overseas shipments as the company pushes cost advantages from local manufacturing. It is also widening its presence in Tier 2 and Tier 3 cities through the LG Essential range while targeting higher-income buyers with premium products. At the same time, the company is building out B2B and AMC, or annual maintenance contract, services, which tend to carry better margins than hardware sales and help diversify earnings.
That strategy follows a period of volatility. According to the company’s Q4 FY26 results, revenue then reached a record ₹80.54 billion, supported by broad-based demand recovery and premiumisation across large-panel TVs, refrigerators, washing machines and air conditioners. Business Standard reported earlier that Q3 FY26 net profit had fallen sharply under pressure from weaker sales, higher input costs and currency headwinds, showing how sensitive the business remains to raw material prices and demand timing. Against that backdrop, the latest quarter suggests LG Electronics India is gradually shifting towards a more resilient profit base built on premium products, local manufacturing and recurring service income.
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