LG Electronics India (LGEL IN) – Q1FY27 Result Update – Premium mix and localization supported margins – Downgrade to ‘HOLD’
Published on 15 Aug 2026
Home Appliances & Air Solution up 13.6% YoY with every major category delivering double-digit growth on the back of both volume and value. Air conditioners and refrigerators benefited from peak summer demand, while washing machines saw strong growth ahead of the seasonal peak. Premium products led growth, while Essential Series sold more than 0.5mn units in H1CY26. Segment EBIT stood at 11.6%, supported by premiumization-led realization improvement, operating leverage, calibrated pricing and localization. management targeting 65% over the next 3-4 years, maintaining a 2-3% annual improvement. Sri City will add 2mn compressor capacity to the existing 1mn capacity at Noida. We estimate FY26-28E revenue/EBITDA/PAT CAGR of 12.7%/23.4%/23.1%. We downgrade to ‘HOLD’ from ‘Accumulate’ rating due to recent run up in the stock prices with revised TP of INR1,723 (earlier INR1,690) based on 45x FY28 EPS.
