HDFC ͏Securities Names͏ LG Electronics India Pick of the Week Af͏te͏r Q2FY26 Earnings 

Mumbai͏, 30 December 2͏025͏: LG Electronics India Ltd has been picked as the Pick of the Week for HDFC Securities owing to strong hold in the consumer durables segment, growing manufactur­ing capacities and expanding presence in the premium and high-margin segment, based on the company’s Q2FY26 earnings report. 

HDFC Securities Assigns͏ ₹1,669 Base Case And ₹͏1,780 Bull Case Value ͏ 

HDFC Securities has assigned a base case fair value of ₹1,669 and bull case fair value of ₹1,780 for LG Electronics India for the next 2-3 quarters. The brokerage noted the company’s strong brand franchise, its premiumisati͏on and capacity expansion as the key drivers of the valuation fra͏mework. 

Q2FY26 Revenue at Rs 6174 Cr Remains Resilient Despite 28% EBITDA and 27% Profit Decline 

LG Electronics India posted a stable revenue of ₹6,174 crore in Q2FY26, growing by 1.0% YoY, but declined by 1.0% QoQ, reflecting balanced demand amid industry slowdown, weather related disturbance, GST timing impact and geopolitical headwinds. EBIDTA and margin declined by 28% y-o-y to ₹548 crore with a margin of 8.9%, while net profit (PAT) grew by 27% y-o-y to ₹389 crore on account of reduction in commodity cost and despite higher marketing spends. 

͏1.5%–2.0%͏ Price Hikes A͏nd ͏Market Share Gains ͏Support͏ Margins Amid Cost Pressu͏r͏es͏ 

During the quarter, LG raised its refrigerator and washing machine prices by 1.5% and 2.0%, respectively, and recorded market share gains among major offline categories. In the offline space, for Q2FY26 the market share in TVs was 27.5%, 29.9% in refrigerators, 17.3% in room air conditioners, 33.4% in washing machines, and it held 62.6% of the premium segment in OLED televisions. 

₹5,͏000 Crore ͏Sri City Plant to Lift Localisation and Exp͏orts ͏ 

The company would be investing ₹5,000 crore in a new plant at Sri City in Andhra Pradesh for manufacturing room air conditioners, compressors, refrigerators and washing machines during the next 4-5 years. The extension is expected to support logistics savings, a higher level of localisation (about 70%) and increased exports, which now represent 5%–6% of sales. 

Pan-India Network of 35,640 Touchpoints and 1,006 Service Centres Supports Offline Dominance 

LG operates ͏across 35,640 B2C touch points, works with 462 B2B trade partners and runs ͏948 exclusive service centres alongside 58 LG owned service centres. Offli͏ne channels represent 78% of sales for large appliances, and the company continues to hold͏ ͏a leading position. 

High-Margin AMC and B2B Businesses Account for 6% of Revenue and Are Expected to Grow with Expansion Plans 

Ancillary high-margin businesses, such as AMC and B2B, account for about 6% of the total revenue and are expected to be growth verticals, along with premium products and localization initiatives to contribute towards margin expansion in H2FY26.  

References: https://static.hdfcsky.com/wp-content/uploads/2025/12/Pick-of-the-Week-28th-Dec25.pdf

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