LG Electronics shares tank 8% after Q3 profit drops 61% YoY. Should you buy, sell, or hold?

LG Electronics India shares tanked as much as 8% to their day's low of Rs 1,394 on the BSE on Thursday after the company reported a steep 61% year-on-year decline in its third-quarter net profit.

The consumer electronics major posted a consolidated net profit of Rs 89.7 crore for Q3FY26, down from Rs 320 crore in the same quarter last year. Revenue from operations also slipped 6% YoY to Rs 4,114 crore.

On a sequential basis, revenue declined significantly from Rs 6,174 crore reported in Q2FY26. Total income for the quarter stood at Rs 4,190 crore, down from Rs 4,474 crore a year earlier.


Profit before tax (PBT) came in at Rs 151 crore, sharply lower than Rs 320 crore in Q3FY25. Despite some moderation in input costs, elevated operating expenses weighed on overall profitability.

Total expenses for the quarter were Rs 4,038 crore compared to Rs 4,153 crore in the year-ago period. Cost of materials consumed remained the largest expense component at Rs 2,988 crore, slightly higher than Rs 2,929 crore last year.

What are analysts saying?

ICICI Securities has maintained a Buy call on LG Electronics India with a reduced target price of Rs 1,746, noting that Q3FY26 performance came in weaker than expected due to post-festive seasonality and softer trade and consumer offtake. The company refrained from aggressive discounting to protect its premium brand positioning, which weighed on margins, while higher commodity costs and currency depreciation added further pressure. Despite near-term challenges, the brokerage remains positive, citing LG’s strong market leadership across key categories, supported by its brand strength, premium positioning and wide distribution network. The company has also gained offline TV market share, reinforcing its leadership position.

Morgan Stanley has an Overweight rating on LG Electronics India with a target price of Rs 1,623. The brokerage noted that Q3 results were impacted by weaker margins, with revenue declining 6% YoY due to soft post-festive demand. Adjusted EBITDA fell 39% YoY, primarily because of operating deleverage, elevated commodity inflation and rupee depreciation, which together weighed on profitability during the quarter.

Motilal Oswal has maintained a Buy call, stating that LG Electronics India reported a weak quarter largely due to subdued performance in the home appliances segment amid post-Diwali demand softness. Elevated raw material costs and forex volatility further pressured margins. However, management has guided for a more positive outlook in Q4, supported by an expected recovery in demand and an improving export environment.

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Management commentary

Hong Ju Jeon, MD of LG Electronics India, expressed optimism about upcoming seasonal demand.

“As summer approaches, we are well positioned to capture demand for compressor products through our two-track strategy, expanding both premium offerings and the ‘LG Essential’ lineup. We also remain focused on scaling our high-margin AMC business and leveraging B2B infrastructure opportunities,” Jeon said.

He added that rationalisation of US tariffs could further strengthen the company’s “Make India Global” strategy by optimising production to cater to domestic demand while boosting exports.

Stock performance and technical outlook

The company currently commands a market capitalisation of approximately Rs 1.03 lakh crore. The stock has a 52-week high of Rs 1,749 and a 52-week low of Rs 1,325.

From a technical standpoint, the 14-day Relative Strength Index (RSI) stands at 57.7, indicating neutral momentum. RSI below 30 signals oversold conditions, while above 70 suggests overbought levels. The stock is trading above four out of its five key simple moving averages (SMAs), signalling a broadly positive technical setup despite earnings pressure.

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