LG Electronics India Shares Jump Nearly 10% After Strong Q1 Earnings 

Mumbai, August 14: Shares of LG Electronics India surged as much as 9.7% on Friday after the consumer electronics maker delivered a strong performance in the June 2026 quarter, with brokerages maintaining a positive view on the stock following the earnings beat. The shares climbed after the company reported robust profit growth.  

LG Electronics India Q1 Results 

LG Electronics India reported a 27% year-on-year increase in net profit to ₹653 crore in Q1 FY27, compared with ₹513 crore in the corresponding period last year. Revenue also rose around 15% year-on-year, supported by strong demand for air conditioners and refrigerators during the summer season.  

The strong quarterly performance was driven by a combination of volume growth, premiumisation and operating leverage.  

Brokers Maintain Buy 

Brokerages retained Buy rating on LG Electronics India with target price implying around 15% upside from the previous closing price. 

Stock jumped as markets cheered report card. Source: NSE

The brokerages expect the company to deliver a strong 25% EPS CAGR between FY26 and FY28, supported by a richer premium product mix and higher utilisation of newly commissioned manufacturing capacity. They expect annual capital expenditure of ₹1,200-1,500 crore between FY26 and FY29, primarily towards the company’s upcoming Sri City plant. 

Despite the planned investments, the brokerages expect return on capital employed to remain at around 30-33%, while return on equity could stay at 24-25%.  

Other brokers also retained Buy recommendation and raised target price, implying more than 21% potential upside from the stock’s previous close. 

The brokerages described the June quarter as an excellent performance despite a challenging operating environment and said the company’s results were stronger than those of most peers in the consumer durables sector. 

They also raised FY27 earnings-per-share estimate by 2% following the Q1 beat and identified LG Electronics India as top pick in the consumer durables space.  

Premiumisation, Volume Growth Support Margins 

Brokers said the company delivered a robust quarter, with both major business segments benefiting from volume and value-led growth. 

Margin expansion was supported by higher volumes, premiumisation and strong home-entertainment demand, helping the company extract greater operating leverage from its business.  

The company expects premium products, larger-screen televisions and festive-season demand to remain important growth drivers through FY27. Export growth is also expected to contribute to the company’s performance.  

The brokerage commentary remains broadly positive, with brokers retaining Buy ratings following the strong Q1 performance. The key positives include LG’s established brand, strong distribution network, premiumisation opportunity and improving capacity utilisation. 

However, investors will need to monitor risks including a slowdown in consumer demand, raw-material price movements, rupee volatility, potential delays at the Sri City facility and the possibility of market-share losses.  

With the stock already trading at around 44 times one-year forward earnings, valuations leave less room for disappointment. Brokers nevertheless believe the premium is justified by LG Electronics India’s strong margins and return ratios. For investors, sustained earnings growth and successful execution of its capacity expansion plans will be crucial to supporting further gains. 

Source

•  https://www.nseindia.com/get-quote/equity/LGEINDIA/LG-Electronics-India-Limited