LG Electronics India (LGEL IN) – Q4FY26 Result Update – Premiumization drives growth while margins contracts – Downgrade to ‘Accumulate’
Published on 22 May 2026
Home Appliances & Air Solutions revenue grew 5.7% YoY to Rs65.2bn, driven by broad-based demand recovery and premiumization across categories, with strong traction in fully automatic washing machines, while dishwashers also emerged as a key growth driver. Home Entertainment segment reported strong 19.6% YoY revenue growth to Rs15.4bn, led by healthy demand for large-screen premium TVs and strong growth in the Information Display business supported by robust commercial signage order inflows. EBITDA margin contracted by 250bps YoY, impacted by elevated commodity prices, rupee depreciation impacting ~1.0%, strategic channel investments impacting ~1.1% and higher e-waste compliance costs affecting margins by ~0.2%. We downward revise our FY27/FY28 earnings estimates by 8.0%/7.7%, factoring in continued pressure from elevated commodity prices, higher import-led input costs and increase in marketing expenses. We estimate FY26-28E revenue/EBITDA/PAT CAGR of 11.7%/22.3%/21.9%. We downgrade to ‘Accumulate’ from ‘BUY’ rating with revised TP of Rs1,690 (earlier Rs1,813) based on 45x FY28 EPS.
