LG Electronics India enters automotive solutions market; Q2 profit grows by 26%

LG Electronics India (LGEI) Ltd, one of the leading manufacturers of home appliances and consumer electronics, has reported significant growth in its figures for the September quarter of fiscal year 27.

According to the company's regulatory filings, LGEI's net profit grew by 25.65 percent compared to the previous year, reaching ₹489.34 crore. Previously, during the period from July to September last year, the net profit was ₹389.43 crore.

Operating revenue in the quarter under review increased by 19.53 percent, amounting to ₹7,380.04 crore, compared to ₹6,174.03 crore in the same period last year. The company attributed the increase in profitability to its success despite rising raw material prices, rupee depreciation, and investments in sales channels to capture demand in the upcoming festive season.

Furthermore, the company's EBITDA rose by 28 percent to ₹701 crore, and the margin expanded by 63 basis points to 9.5 percent. Total expenses for the second quarter of fiscal year 27 amounted to ₹6,810.93 crore, which is 18.88 percent higher than in the previous period.

Home Appliances and Air Solutions Segment

The revenue of the Home Appliances and Air Solutions (H&A) segment of LG Electronics India grew by 20.86 percent compared to last year, reaching ₹4,771.69 crore. Last year, this figure was ₹3,947.85 crore. This business includes air conditioners, refrigerators, microwave ovens, washing machines, dishwashers, compressors, water purifiers, and air purifiers. This segment demonstrated 'the highest growth since listing,' driven by strong double-digit growth in key categories.

Home Entertainment Segment

Revenue from the Home Entertainment (HE) segment increased by 17.16 percent year-on-year in the second quarter of fiscal year 27, reaching ₹2,608.35 crore. The segment reported 'the third consecutive quarter of double-digit growth' on a high base. HE includes televisions (flat panels, displays, projectors, monitors), audiovisual equipment, monitors, and personal computers.

LGEI's total revenue, including other income, reached ₹7,465.60 crore, which is 19.37 percent higher in the second quarter of fiscal year 27. The company emphasized that the quarter was characterized by quality growth, balanced in both volume and value, and covered both mass and premium segments. Both areas contributed significantly: the Home Appliances and Air Solutions segment showed the highest growth since listing, while Home Entertainment continued its trend of double-digit growth for the third consecutive quarter on a high base.

A record market share in the LED television segment was noted, and the fast-growing export business complemented healthy domestic demand, reflecting broad and sustained growth. For the first half (H1) of fiscal year 27, LGEI's total consolidated revenue was ₹14,782.66 crore, an increase of 17.4 percent.

LGEI also announced entry into a new B2B segment—Vehicle Solutions and In-Vehicle Infotainment Systems (IVI). The company stated that this initiative will bring LG Korea's key global B2B automotive business, including automotive infotainment and telematics solutions, to the Indian market. These products will be manufactured and supplied from LGE India's third plant in Sri City, Andhra Pradesh.

Commenting on the results, Managing Director Hong Joo Jung noted that these figures indicate the broader strength of the Indian consumer durables industry, which continues to benefit from rising disposable incomes, growing aspirations for premium products, and deeper penetration in metropolitan and emerging markets. He added that, concluding its first year as a public company, this result reflects shareholder confidence and the company's commitment to creating long-term value for them. Based on the strong performance in the first half of fiscal year 27, LGEI reaffirmed its targets for fiscal year 27: 'mid-decade revenue growth and early double-digit EBITDA margins.'

Hong Joo Jung also mentioned that while raw material and currency trends remain key factors to monitor, they are actively managed through localization, calibrated pricing, and operational efficiency, and the overall industry sentiment remains positive ahead of the peak demand season.

As of 12:50 PM, LG Electronics India Ltd shares were trading on BSE at ₹1,814.90, which was 7.2 percent higher than the previous day's close.

Wheels India, an automotive component manufacturer based in Chennai, reported a significant increase in net profit for the second quarter of the 2027 fiscal year. Profit rose by 88%, reaching 60 crore rupees compared to 32 crore rupees in the same period last fiscal year.

During the reporting period, the company's revenue also increased by 36%, amounting to 1,723 crore rupees, up from 1,268 crore rupees in the second quarter of the 2026 fiscal year. Exports reached 388 crore rupees, higher than the 299 crore rupees recorded in the same quarter of the previous year.

Srivats Ram, Chairman and Managing Director of Wheels India, noted that overseas market sentiment remains positive, as sales in the US grew by 50% year-on-year in the second quarter. The growth in exports is attributed to high demand for wheels for construction machinery, earthmoving equipment wheels, and the wind turbine segment. He also emphasized that the company benefited from the AI boom and data centers, which require significant earthworks in the US, contributing to increased demand for construction equipment.

The domestic market showed very high demand for pneumatic suspension systems for buses. The company also raised funds totaling 430 crore rupees: 180 crore rupees through preferential placement and 250 crore rupees through Qualified Institutional Placement (QIP), aimed at reducing debt burden. The fundraising and debt reduction process was completed by the end of September 2026.

Ram added that after repaying working capital debt at the end of September, the positive impact of reduced interest expenses will be reflected in the third quarter. Furthermore, the initially planned capital expenditure (capex) of about 300 crore rupees for the year was significantly increased to 400–450 crore rupees.

The company reported that its annual business turnover in the wind turbine sector is approximately 600 crore rupees, with 25% coming from offshore projects, mainly in Europe. Most of the remaining volume is supplied to wind turbine manufacturers in India, who assemble them into larger complexes for subsequent export.

Comments on Performance Results

Commenting on the results, Ram stated that the second quarter demonstrated strong sales growth, derived from earthmoving equipment wheels, pneumatic suspension systems, and the domestic Indian market for cars, trucks, and tractors.

Regarding forecasts for the second half of the year, Srivats cautioned that inflation is a concern, and growth may also be affected by the higher base effect resulting from the GST 2.0 demand stimulation, which the company utilized in the second half of last year.

Wheels India is a leading manufacturer of wheels for trucks, agricultural tractors, passenger cars, and construction machinery, as well as pneumatic suspension systems for trucks and buses, and industrial components for the construction and wind power industries. The company's manufacturing facilities are located in Tamil Nadu, Maharashtra, Uttar Pradesh, Uttarakhand, and Andhra Pradesh.

Despite concerns about inflation driven by rising steel and fuel prices, Ram noted that most of the company's segments remain resilient, and continued growth is expected. He also mentioned that preparations for the festive season are already underway, and demand remains good. The second half promises to be successful for the wind turbine, hydraulic cylinder, and structural fabrication segments, in addition to construction equipment wheels, pneumatic suspension systems, and the overall automotive wheel market.