01 — At a Glance
The Premium Appliance Giant That Just Handed You a ₹90 Cr Quarter
- 52-Week High / Low₹1,749 / ₹1,300
- FY25 Revenue (Full Year)₹24,367 Cr
- FY25 PAT (Full Year)₹2,201 Cr
- FY25 EPS₹32.46
- Q3 FY26 EPS₹1.32
- Book Value₹101
- Price to Book15.3x
- Dividend Yield0.00%
- Debt / Equity0.07x
- 3-Month Return-3.63%
Auditor’s Opening Note: LG Electronics India — ₹1,05,056 Cr market cap, 56.8% ROCE, and a Q3 FY26 PAT of ₹89.67 Cr that made even the company’s concall moderator take a deep breath before saying “next question.” Revenue fell 6.4% YoY. PAT fell 61.6% YoY. OPM went from 8% to a harrowing 5%. And then they said Q4 would be “better than last year.” The stock is down 3.63% in 3 months. Meanwhile, LG is trading at 51x earnings for a company where quarterly EPS just came in at ₹1.32. At this rate, the annualised EPS math will give you a slight headache.
02 — Introduction
The Korean Giant That Rules Indian Kitchens — Except This Quarter
Walk into any Indian home built after 2000. Odds are there’s an LG refrigerator humming in the kitchen, an LG washing machine doing its thing in the balcony, and an LG AC mounted on the bedroom wall — all running silently, costing you exactly nothing in aftersales drama, which is exactly what the brand spent decades engineering. LG Electronics India is not a brand. It’s a kitchen-and-living-room coup that happened so gradually nobody noticed.
The numbers back this up. Market share #1 in washing machines (33.5%), refrigerators (29.9%), microwaves (51.4%), water purifiers (40.5%), and panel televisions (27.5%). In a country of 1.4 billion people, half of all microwave ovens sold carry the LG logo. That is either a monopoly or a very successful cooking experiment.
And then came Q3 FY26 — October to December 2025. Revenue from operations: ₹41.14 billion (roughly ₹4,114 Cr). EBITDA margin: 4.8%. PAT: ₹90 Cr. The blame list was impressively long: “US tariffs, sharp currency fluctuations, purchase deferments following the GST announcement, geopolitical uncertainties, softening consumer demand, and cooler-than-expected weather.” In other words, everything except the product itself went wrong. The business is structurally excellent. Q3 just happened to catch a cold — from the cooler-than-expected weather, naturally.
Concall Note (Feb 2026): Management’s Q3 FY26 commentary: “Q3 structurally the smallest quarter at 16–17% of annual revenue.” Translation: “Please don’t judge us by December. January looks amazing. Promise.” Festive + wedding season loaded Q3’s first half. Then it fell off a cliff after Diwali.
03 — Business Model: WTF Do They Even Do?
They Sell Expensive Appliances. To Everyone. Everywhere.
The model is elegant in its simplicity: manufacture home appliances and consumer electronics, slap the LG logo on them, charge a premium nobody argues with, and distribute through 35,640 B2B touchpoints across India. That’s not a distribution network. That’s an occupation.
Two manufacturing plants — Greater Noida (7.6 million units capacity) and Pune (6.91 million units capacity) — running at 77% utilisation, producing everything from refrigerators to compressors to ceiling fans. A third plant in Sri City, Andhra Pradesh is under construction with ₹5,000 Cr capex planned over 4–5 years. They export to 47 countries. They have 1,006 authorised service centres across 633 cities, backed by 13,368 field engineers. Nine million service claims handled in FY25. LG doesn’t just sell appliances — it builds a dependency.
Revenue mix (Q1 FY26 vintage): Refrigerators 34.5%, ACs 20.5%, Washing Machines 18.5%, TVs 16.5%, Services 5%, others 5%. The business has been growing at 13% CAGR over 3 years. Localization rate has improved from 50.5% to 55.8%. There’s even a new “Essential Series” for aspirational buyers — because why sell only to affluent India when semi-urban India is buying its first fridge?
Washing Mach.33.5%Market Share
Refrigerators29.9%Market Share
Microwave51.4%Market Share
Water Purifier40.5%Market Share
Royalty & Parent Note: LG India is 85% owned by LG Electronics Inc., South Korea — one of the world’s largest consumer electronics companies. India contributes nearly 4% of global LG revenue and is a key growth market. Technology linkages, R&D support, and brand equity flow from Seoul. Post-IPO, LG India must navigate being a listed subsidiary of a MNC — a balancing act between shareholder transparency and Korean parent priorities.
💬 Drop a comment: Which LG appliance is in your home? And does it feel odd that buying an AC indirectly makes an 85% Korean conglomerate richer?
04 — Financials Overview
Q3 FY26: The Numbers (Figures in ₹ Crores)
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