LG Electronics India Q2 Net Profit Jumps Over 25% to ₹489 Crore as Board Approves Foray into Vehicle Solutions
Shares of LG Electronics India Limited advanced up to 5% on Thursday after the consumer technology major posted strong second-quarter financial results for FY27 and announced a major strategic pivot into automotive components and mobility technologies.
The stock touched an intraday high of ₹1,775.80 on the BSE following the twin announcements, extending gains after opening at ₹1,711 against the previous close of ₹1,692.10.
Earnings Outperform Street Expectations
LG Electronics India delivered profit after tax of ₹489.35 crore for the quarter ended September 30, 2026, marking an increase of 25.6% compared to ₹389.43 crore reported in the corresponding quarter of the previous financial year.
Revenue from operations grew 19.5% year-on-year to ₹7,380.05 crore, up from ₹6,174.03 crore in Q2 FY26. The top-line performance topped market estimates, which had pegged quarterly revenue closer to ₹7,069 crore. Total income for the period stood at ₹7,465.60 crore compared with ₹6,253.81 crore a year ago.
Operating metrics demonstrated strong leverage:
- EBITDA: Rose 27.9% year-on-year to ₹701 crore, up from ₹547 crore in the year-ago period.
- EBITDA Margin: Expanded by 60 basis points to 9.5%, compared to 8.9% in Q2 FY26.
- Profit Before Tax (PBT): Stood at ₹654.67 crore, an increase of 24.7% over ₹524.86 crore recorded in Q2 FY26.
Segment Performance
Growth was broad-based across the company's major operating segments, driven by seasonal volume off-take and operational efficiencies.
The Home Appliances and Air Solution division remained the largest top-line contributor, registering revenue of ₹4,771.70 crore, representing a 20.9% year-on-year expansion from ₹3,948 crore. Meanwhile, the Home Entertainment segment clocked a 17.1% year-on-year increase in revenue, climbing to ₹2,608.40 crore.
Strategic Foray into Vehicle Solutions
In a key operational milestone, the board of directors approved a formal proposal to enter the Vehicle Solutions business, marking the company’s official entry into automotive electronics and next-generation mobility systems.
Proposed Vehicle Solutions Portfolio:
- In-vehicle infotainment systems and digital cockpits.
- Automotive displays, telematics, and vehicle computing platforms.
- Advanced Driver Assistance Systems (ADAS) and integrated automotive software.
- Dedicated vehicle connectivity hardware and software solutions.
Manufacturing for the automotive business is planned at LG Electronics India’s third plant located in Sri City, Andhra Pradesh. The company stated that capital expenditures will be deployed in phases based on operational scale, technological requirements, and market dynamics. To facilitate the expansion, the company will seek shareholder approval via postal ballot to amend its Memorandum of Association (MoA).
