Q2 results today: Investors will see whether LG India justifies wave of buy calls it received after IPO

LG Electronics India, one of the most successful listings of 2025, is set to declare its first quarterly results today since debuting on the bourses. The company, which made a stunning market entry with over 50% listing gains, will now face its first earnings scrutiny from investors keen to see if its fundamentals justify the euphoria that followed its IPO.

The stock, which debuted strongly after a conservatively priced IPO, had drawn a wave of buy calls from brokerages soon after listing. Analysts hailed LG India’s balanced valuation, robust market leadership, and strong financial performance.

As the company prepares to announce its September quarter results, the Street will closely watch whether its growth trajectory and margins can sustain the optimism that propelled its blockbuster debut.


In FY25, LG India reported a 14% rise in revenue to Rs 24,631 crore and a 46% jump in profit after tax to Rs 2,203 crore, supported by healthy operating efficiency. Its EBITDA margin stood at 12.8%, and PAT margin at 9%, reflecting strong profitability. The company remains debt-free with a return on capital employed (ROCE) of 43% and return on equity (ROE) of 37%, indicating exceptional operational and financial strength.

According to analysts at PL Capital, LG India is well positioned to build on its early market success. It has a Buy rating with a target price of Rs 1,780, valuing it at 42x FY28 earnings. "LG Electronics India is a key player in consumer electronics and home appliances with a strong focus on innovation, quality, and a well-diversified product portfolio," the brokerage said.

LG’s extensive distribution network and premium brand positioning provide it a competitive edge in categories such as washing machines, refrigerators, air conditioners, and televisions — segments where it already holds leading market shares. "We estimate a revenue, EBITDA, and PAT CAGR of around 10%, driven by healthy growth across segments, capacity expansion, and a stronger push into after-sales and B2B businesses," PL Capital notes.

The company’s home appliances and air solutions segment, which contributes 75% of revenue, has grown nearly 14% annually over FY22-25, while the room air conditioner (RAC) category has expanded at 22.6%, helped by rising demand for energy-efficient and AI-enabled products.


Industry data shows India’s overall appliances and electronics market (excluding mobile phones) is expected to grow at 13.8% CAGR to Rs 6.19 lakh crore by CY29, indicating a large runway for premium brands like LG.

Beyond consumer appliances, LG India is also deepening its presence in commercial air-conditioning, display systems, and hospitality solutions. Analysts expect its annual maintenance contracts (AMC) business to grow at 30% CAGR, while exports could rise to 9-10% of revenue from the current 6%. Its plans for a Rs 5,000 crore new manufacturing facility in Sri City, Andhra Pradesh, will further boost capacity and localization.

In a recent report, Emkay Global said LG has built a formidable franchise in India over three decades, with leadership in large appliances and a strong premium positioning.

The brokerage, while giving a Buy rating and a price target of Rs 2,050, said that it expects LG India to post a 13% revenue CAGR and 14% EPS CAGR between FY26-28, supported by new category expansion, increased exports, and steady demand recovery. It estimates an average ROE of 32% and ROCE of 44%, with strong free cash flows and dividend payouts of about 65%.

The Street now expects today’s Q2 results to reinforce that confidence. Investors will watch for signs of steady demand during the festive quarter, cost discipline amid rising competition, and updates on its capex and export plans.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)