Shares of LG Electronics India Ltd (LGEL) moved up 3.53 per cent in Monday's trade to hit a high of Rs 1,542.40. At this level, the stock -- which had debuted in mid-October last year -- has climbed 35.30 per cent from its initial public offering (IPO) price of Rs 1,140.

Despite a softer-than-expected March 2026 quarter (Q4 FY26) performance, multiple brokerages have retained their positive view on the stock, citing long-term growth visibility, margin recovery prospects and capacity expansion plans.

Nomura said LGEL's Q4 FY26 consolidated revenue stood at Rs 8,050 crore, up 8 per cent year-on-year (YoY), broadly in line with estimates. However, profitability came under pressure.

"LGEL's Q4 FY26 consolidated revenue of Rs 8,050 crore (+8 per cent YoY) was in line with our/consensus estimates. Adjusted EBITDA margin at 11.7 per cent was below (Nomura/consensus: 13 per cent/ 12.3 per cent), leading to EBITDA of Rs 950 crore (-10 per cent YoY) on revenue of Rs 8,050 crore. APAT was -8 per cent YoY," the brokerage stated.

Nomura trimmed its target price following the decline in EBITDA and profit but retained its constructive outlook.

"We maintain our target P/E of 40x and roll forward valuation to Jun-27F EPS (from Mar-27F) to arrive at our new, lower TP of Rs 1,763 (from Rs 1,836). Its current valuation at ~35x FY28F EPS is attractive, in our view, given a ~32 per cent EPS CAGR over FY26-28F and potential upside from a stronger recovery in export markets. We maintain our Buy rating," it added.

Motilal Oswal Financial Services Ltd (MOFSL) also said the company's Q4 earnings came below expectations due to weaker margins across segments.

"LG Electronics' Q4 FY26 earnings came in below our estimates due to lower margins in both home appliances & air solution (H&A) and home entertainment (HE) segments," MOFSL noted.

The brokerage, however, expects margins to normalise going ahead.

"We largely maintain our estimates for FY27-FY28. The stock trades at 44x/38x FY27/FY28E EPS. We value LGEIL at 45x FY28E EPS to arrive at a TP of Rs 1,750. Reiterate BUY," it further said.

JM Financial highlighted the company's ongoing expansion plans and retained its positive stance.

"LG Electronics' Sri City capacity expansion is on track, and compressor manufacturing is expected by Q3 FY27E. Our FY27E/28E EPS remains largely unchanged. Maintain BUY with a TP of Rs 1,730 based on 45x Mar'28E EPS," it stated.

Nuvama Institutional Equities also maintained its 'BUY' recommendation, though it slightly lowered earnings estimates to factor in margin pressures.

"We are trimming FY27/28E EPS by 4 per cent/3 per cent to reflect margin headwinds. Maintain 'BUY' with a Mar-27E TP of Rs 1,820, based on 48x Mar-28E EPS. At CMP, the stock trades at 47.4x/39.2x FY27E/28E EPS," the brokerage said.

Meanwhile, Elara Capital reiterated its 'Accumulate' rating after what it described as a subdued quarter but positive FY27 outlook.

"We maintain Accumulate with a TP of Rs 1,750 on 45x March FY28E P/E. LGEL enjoys healthy growth outlook, industry-leading margin and return ratios, robust export potential and large Rs 5,000 crore capex plan, part of which would commence in Q4 FY27, boosting FY28 revenue visibility," it said.