Higher commodity costs and a depreciating rupee impacted LG Electronics India’s profits in the March quarter. The company posted a net profit of ₹692.7 crore for the quarter, down 8.19 per cent from ₹754.5 crore in the corresponding quarter of FY25. However, revenue from operations grew 8.1 per cent to ₹8053.55 crore.

Hong Ju Jeon, Managing Director, LG Electronics India, said, “LG Electronics India has delivered its highest-ever quarterly revenue in Q4 FY26. We are navigating macro challenges in complex global environment with calibrated actions and continued investment in premiumisation.”

Sanjay Chitkara, Director and Co-CSMO, told businessline, “We sold over one million units of air-conditioners (ACs) in the March quarter, as we were well-prepared for the transition to the new BEE star ratings. Our home electronics division has garnered nearly 20 per cent growth driven by the premiumisation focus and also aided by GST rationalisation. Our three strategic pillars of Make in India, Make for India and Make India Global enabled us to garner highest-ever quarterly revenue.”

Key challenges

Atul Khanna, Chief Accounting Officer, said that the year-on-year EBITDA margins were affected due to impact of commodity prices and fluctuations in the currency movement. “However, we remain optimistic on margin improvement while maintaining focus on cost discipline, localisation and operational efficiency. We would also be targeting to increase our exports significantly, and it will give us a buffer coverage for hedging currency fluctuation impact. Currently, exports contribute about 6 per cent to our revenues,” he added.

Asked about the impact of the West Asia conflict, Chitkara said, “The Summer season demand trends are strong as the penetration levels of air-conditioners is very low in India. We are optimistic that we will garner a good growth in the ongoing quarter compared to last fiscal. At this stage, the overall demand environment in India is stable. We have made some price adjustments to mitigate cost pressures and have taken a price hike in April. We remain watchful of the situation.”

“The recent developments regarding import restrictions on compressors will have absolutely no impact on our AC and refrigerator business operations. We have more than enough in-house manufacturing capacity of compressors for refrigerators. Also, for ACs, we make compressors in-house and have other local arrangements. In fact, we are increasing compressor manufacturing capacity for ACs,” Chitkara stated.

Published on May 21, 2026