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Informist, Monday, Aug. 10, 2026

 

By Avishek Rakshit

 

KOLKATA – Strong demand for summer products such as air conditioners and demand for televisions in the wake of the football World Cup are expected to have boosted sales volumes of consumer durables companies in the June quarter, including LG Electronics India Ltd. While sales volumes got a boost, price hikes by the company in the June quarter, in line with industry trends, are expected to have further boosted its top line, leading to higher profitability and margins.

 

LG Electronics is expected to report over 14% year-on-year jump in its June quarter revenues to over INR 72 billion, according to the average of estimates from 10 brokerages. The company's net profit is seen rising over 20% on year to a little over INR 6 billion, as per the estimates. However, sequentially, the net profit is seen declining nearly 11% and revenue is likely to fall over 11%. LG Electronics will announce its June quarter results on August 13.

 

The highest estimate for the company's June quarter net profit is INR 6.75 billion from Axis Securities Ltd. and the lowest is INR 5.73 billion from YES Securities (India) Ltd. The highest estimate for revenue is over INR 75 billion from Elara Securities (India) Pvt. Ltd., and the lowest is a little over INR 70 billion from Kotak Securities Ltd. 

 

Nearly all brokerages said that in line with its peers, LG Electronics increased prices of key products such as air conditioners, refrigerators, televisions, and other appliances in a staggered manner by 9-15?pending on the product. Prices were hiked during Jan-May in phases to offset raw material inflation which primarily happened because of the war in West Asia.

 

As crude oil prices surged due to the closure of the Strait of Hormuz, prices of crude derivatives surged, partly due to low availability of raw materials and partly due to panic buying. Plastics and other crude oil derivatives are key raw material for LG Electronics and its peers and costs began mounting after the US and Israel jointly started the war against Iran. 

 

Kotak Securities, which estimates 12% year-on-year growth in the overall June quarter top line of LG Electronics, expects the company's home appliances division to report around 10% on-year revenue growth and the home entertainment products to register 20% on-year revenue growth.

 

Most brokerages such as Nomura Equity Research attribute the company's revenue growth in home appliances to strong air-conditioner sales and price hikes in the key summer season. A comparatively low base in the June quarter of the previous financial year is expected to further aid revenue growth from this segment. At the same time, while the top-line growth in refrigerators for LG Electronics is expected to be muted, brokerage Kotak estimates the washers category comprising diswashers and washing machines to have registered strong growth. 

 

In the last financial year, the effects of La Nina kept temperatures cooler than usual in the summer. However, companies had anticipated a strong summer and produced more air conditioners, which had resulted in a huge inventory stockpile that only got cleared in the June quarter this year, when the sweltering summer and El Nino effects led to strong demand conditions. This created a base effect for all consumer durable companies, including LG Electronics. Brokerage Kotak said that the football World Cup is expected to have led to strong sales of home entertainment products such as television. 

 

LG Electronics is expected to report earnings before interest, tax, depreciation, and amortisation of INR 8.49 billion in the June quarter, according to the average of estimates from 10 brokerages. The highest estimate for EBITDA is INR 9.13 billion from Axis Securities and the lowest estimate is INR 7.98 billion from YES Securities. 

 

Kotak expects the company's EBITDA margin to increase by 35 basis points to 11.8% in the June quarter, aided by price hikes and reduction of incentives to its sales channels. It estimates an EBIT margin of 11.75% in home appliances, up 25 basis points on year, and 15.7% in home entertainment, flat on year.

 

All 13 research reports on the company available with Informist have a "buy" recommendation on the stock at an average target price of INR 1,751. Monday, shares of LG Electronics ended at INR 1,557.80 on the National Stock Exchange, down 1.8% from Friday's close. The stock is down nearly 2% since the company announced its March quarter earnings in May.

 

The following are the Apr-Jun earnings estimates for LG Electronics from 10 brokerages, in descending order of the estimate of net profit, in INR billion:

 

Broker Name	Net Sales	Net Profit	EBITDA
Axis Securities Ltd	70.25	6.75	9.13
HDFC Securities Ltd	71.71	6.31	8.75
Motilal Oswal Financial Services Ltd	70.89	6.29	8.38
Nomura Equity Research	70.83	6.25	8.66
Elara Securities (India) Pvt Ltd	75.46	6.15	8.22
Nuvama Wealth Management Ltd	70.96	6.11	8.57
Bank of America global research	72.66	6.09	8.44
Kotak Securities Ltd	70.12	6.03	8.28
JM Financial Institutional Securities Pvt Ltd	70.77	5.99	8.49
YES Securities (India) Ltd	71.92	5.73	7.98
Average	71.56	6.17	8.49

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury 

 

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