LG India Q2 profit slips 27% but TV and AC market share climbs – News Air Insight

LG Electronics India on Thursday reported a 27% year-on-year (yoy) drop in net profit at Rs 389.4 crore for the second quarter ending September, while there was a 1% yoy growth in revenue from operations at Rs 6174 crore in the period under review. The company, however, said it improved market share in key categories like TV, refrigerator and AC.The country’s largest television and home appliance manufacturer by market share said business in the July-September period was impacted by the GST transition phase when both consumers and trade stopped purchases for over a month amidst the overall challenging demand environment.

“There was a temporary pause, but the GST rate cut was successfully implemented, festive sales were excellent, driven by premium products and things are getting better. Trade channel inventory has normalised. All signals are extremely positive,” Sanjay Chitkara, chief sales officer at LG India, told ET.

Chitkara said LG has improved total offline sales market share in TV by 1.4% to 27.5%, by 1% in refrigerator at 29.9%, by 0.5% in AC to 17.3% whereby it even became the market leader in AC. In washing machines, LG has 33.4% share and in microwave 45.4%. These figures are for the calendar year to date ending September.
LG’s EBITDA (earnings before interest, taxes, depreciation, and amortization) in the second quarter was 548 crore with an EBITDA margin of 8.9%. The company said the EBITDA margin drop was a result of the combined impact of rising commodity prices and incremental investments in festive go-to-market initiatives, to support the company’s distributors during tough market conditions.
LG India’s managing director Hong Ju Jeon said in the earnings release that the first half of fiscal 2025-26 presented some macroeconomic headwinds including a cool summer, geo-political challenges, tariffs, and forex fluctuations.

“Despite this, our team in India demonstrated resilience in sales growth, gaining market share and maintaining stable profitability….We are now strategically accelerating our future growth by expanding our domestic footprint followed by our focus on ramping up exports as global conditions normalize,” he said.

The company’s home appliance and AC business reported marginal drop in segment revenue at Rs 3947.8 crore in the September quarter as compared to Rs 3953.2 crore in the same period of last year. The home entertainment or television and audio product business segment revenue grew 3% yoy at Rs 2226.1 crore in the period under review. However, segment profit of both the businesses were impacted on a yoy basis.

While the results were declared after market hours, LG India’s share price closed at Rs 1674.1 a piece on the BSE on Thursday at a gain of 1.13% while the benchmark Sensex closed at a marginal gain of 0.01%.