LG Electronics India (LGEL IN) – Q3FY26 Result Update – Consecutive 2nd quarter of underperformance – BUY
Published on 12 Feb 2026
The management indicated that company enters Q4FY26 with strong momentum, supported by a positive response to its new BEE-rated portfolio and a two-track compressor products strategy focused on expanding both premium and ‘LG Essential’ offerings ahead of the summer season. The company remains focused on scaling its high-margin AMC business and tapping B2B infrastructure opportunities, while US tariff rationalization and the upcoming third manufacturing plant (Sri City plant) will strengthen its ‘Make India Global’ export ambitions and long-term growth outlook.
We downward revise our FY27/FY28 earnings estimates by 5.3%/5.0% factoring in correction in margins due to recycling costs linked to compliance, upfront AMC costs & elevated fixed costs arising with operation of new plant. We estimate FY26-28E revenue/EBITDA/PAT CAGR of 11.5%/23.0%/21.0%. Maintain ‘BUY’ rating with revised TP of Rs1,808 (earlier Rs1,920) based on 45x FY28 EPS.
