LG Electronics India posts muted FY26 as margins slip; analysts say hold
Consumer durables leader saw just 1% revenue growth and EBITDA margins down 300bps to 9.8% in FY26. Growth levers include the ₹5,000-crore Sri City plant, an Essential mass-premium series and an export push. Recently listed at 35x FY25 earnings, the stock now trades at ~45x forward.
What happened
LG Electronics India, leader in consumer durables, posted muted FY26 (1% revenue growth, margins down 300bps) but has growth levers via new Sri City plant,
Key facts
- listed Oct 10 2025
- 35x FY25 earnings IPO
- 38% return
- 33% washing machine share
- 30% refrigerator share
- 43% premium refrigerator share
- 17% RAC share
- ₹5,000 crore Sri City plant
- ₹657 crore deployed
- 1% FY26 revenue growth
- 9.8% EBITDA margin
- 45x forward valuation
Why this matters
The ₹5,000-crore Sri City capacity plus an export orientation signals a shift toward scale and localization, opening room for supply-chain partnerships or export-market tie-ups.
What to watch
- Sri City plant commissioning and utilization updates
- Quarterly EBITDA margin trajectory vs the 9.8% base
- Export revenue contribution and order wins
- Essential series volume/mix traction in mass-premium
- Commodity and freight cost trends affecting input costs
- Sell-side maintains 'hold', trims target multiples toward 35-40x forward
- Management guidance emphasizing Sri City ramp timeline and export order book
- Investors rotate into higher-growth or cheaper durables peers pending margin proof