LG Electronics India has reported a steep 61.58% year-on-year decline in net profit for the third quarter of fiscal year 2026, posting a profit of just ₹89.67 crore, compared to ₹233.45 crore during the same period last year.

The company’s revenue from operations also fell by 6% to ₹4,114 crore. This marks the second quarterly result for LG Electronics India since its stock market listing in October 2025.

Reasons for the Decline & Management Commentary

According to the company’s official statement, the sharp decline in profitability was primarily driven by a significant post-Diwali slowdown in consumer demand. While raw material prices remained relatively stable, elevated operational costs continued to pressure margins.

Additionally, LG India opted not to engage in aggressive discounting to boost sales, instead choosing to protect its brand equity and premium positioning, which further compressed short-term profitability.

Despite the disappointing numbers, Managing Director Hong Ju Jeon expressed optimism for the upcoming summer quarter.

“As we approach the summer season, we are well-positioned to capture demand for compressor-based products through a dual strategy—expanding our premium product portfolio while also broadening our LG Essential lineup. Recent US tariff relaxations will further strengthen our ‘Make in India, Serve Global’ strategy,” Jeon said.

Stock Market Reaction & Expert Recommendations

Following the earnings announcement, LG Electronics India’s share price fell by as much as 8.35% in early trading, touching ₹1,392 per share. The stock recovered some losses by mid-session, trading approximately 3.8% lower than the previous close.

Despite the weak results, ICICI Securities has maintained a ‘BUY’ rating on the stock.

In their research note, analysts stated:

“We believe LG India remains in the best position to deliver consistent growth and margin resilience over the medium term, driven by strong brand recall, market leadership, distribution heft, and backward integration capabilities.”

The brokerage has set a target price of ₹1,746 per share, suggesting that the current dip presents a valuable accumulation opportunity for long-term investors.

LG Electronics India’s stock currently trades below its 52-week high of ₹1,749, with the company’s market capitalization standing at approximately ₹1.03 trillion