LG Electronics India's Profit Rises 26% to ₹489 Crore, and It Moves Into Car Electronics With a New Vehicle Solutions Business

LG Electronics India, the local arm of the South Korean consumer electronics giant, reported strong growth in profit and revenue for the September quarter and announced a strategic expansion into automotive electronics, signalling its ambition to become more than a maker of televisions and home appliances.

The company's net profit rose 25.7% to ₹489.35 crore for the July-September quarter, the second quarter of the 2026-27 financial year, from ₹389.43 crore a year earlier, according to HDFC Sky, citing results announced on Thursday, November 5. Revenue from operations rose 19.5% to ₹7,380.05 crore from ₹6,174.03 crore. Profit before tax rose 24.7% to ₹654.67 crore.

EBITDA rose 28% to about ₹701 crore, and the EBITDA margin improved by 63 basis points to 9.5%, according to Kotak Neo. "The September quarter marked the company's second consecutive quarter of double-digit growth," the company said.

Shares of LG Electronics India rose as much as 6.92% to ₹1,809.20 on November 5, according to Kotak Neo.

Both businesses grow

Both of LG's main business segments grew strongly. The home appliances and air solution segment, which includes refrigerators, washing machines and air conditioners, grew revenue 20.9% to about ₹4,772 crore, with operating profit up 28.4% and a margin of 8.7%, up from 8.2%, according to Kotak Neo.

The home entertainment segment, which mainly comprises televisions, grew revenue 17.2% to about ₹2,608 crore, with operating profit up 19.9% and a margin of 12.9%.

For the first half of the financial year, revenue rose 17.5% to about ₹14,613 crore, and profit after tax rose 26.5% to about ₹1,142 crore.

Into the car

The most significant announcement was LG's decision to enter the vehicle solutions business. The board approved entry into automotive electronics and mobility technologies, according to HDFC Sky. Planned products include in-vehicle infotainment systems, digital cockpits, automotive displays, telematics, vehicle computing, advanced driver assistance systems (ADAS), connectivity solutions and automotive software.

Manufacturing is planned at the company's third plant at Sri City in Andhra Pradesh. The investment will be made in phases, and the company has not disclosed a specific amount. Shareholder approval is required through a postal ballot to amend the company's memorandum of association.

"The company expects the new business to diversify its portfolio and create additional growth opportunities," HDFC Sky reported.

Why car electronics

Cars are becoming computers on wheels. Modern vehicles contain growing amounts of electronics, from large touchscreen displays and digital instrument clusters to sensors and processors for driver assistance and connectivity. Electric vehicles, in particular, contain more electronics than conventional cars.

India's car market is growing rapidly, and carmakers are adding more technology features to their vehicles, particularly in SUVs and premium models. Global and Indian component makers are investing to supply these systems. LG's parent company, LG Electronics, already has a large global vehicle solutions business that supplies infotainment systems and electric vehicle components to carmakers, giving the Indian arm access to technology and expertise.

The Sri City plant

LG's third Indian manufacturing plant at Sri City, Andhra Pradesh, is expected to begin manufacturing compressors in the third quarter of the 2026-27 financial year, according to Kotak Neo. Compressors are a key component of air conditioners and refrigerators, and making them locally reduces dependence on imports.

The company has two existing plants in India, in Greater Noida and Pune, which make a wide range of consumer electronics and appliances.

Guidance reaffirmed

LG reaffirmed its targets for the financial year, aiming for revenue growth in the mid-teens and an EBITDA margin in the early double digits, according to Kotak Neo.

The consumer electronics market

India's consumer electronics and appliances market is growing, driven by rising incomes, urbanisation, increasing electrification and hotter summers that drive demand for air conditioners. LG is one of the market leaders, competing with Samsung, Indian companies such as Voltas, Havells (Lloyd) and Blue Star, and Chinese brands.

The government's production-linked incentive schemes for electronics and white goods have encouraged companies to expand local manufacturing, and LG has positioned itself as a major manufacturer in India, exporting some products to other markets.

A strong listed debut

LG Electronics India listed on Indian stock exchanges in October 2025, in one of the largest IPOs of that year, with the South Korean parent selling part of its stake. The listing attracted strong investor demand, reflecting confidence in India's consumer growth story. The company's results since listing have been closely watched as a test of whether multinational subsidiaries can deliver strong growth on Indian exchanges.

Why it matters

LG's move into automotive electronics reflects a broader trend of electronics companies seeking new growth markets in India, as the country positions itself as a manufacturing hub. It also highlights India's ambition to build a domestic supply chain for automotive electronics, an area where it has relied heavily on imports.

Localisation and exports

LG has been increasing the share of components it makes locally, reducing import costs and exposure to currency fluctuations. The compressor plant at Sri City is a key part of this strategy, as compressors are among the most valuable components in air conditioners and refrigerators. Local manufacturing also positions LG to export more products from India to markets in South Asia, the Middle East and Africa.

The company's parent, LG Electronics of South Korea, has been diversifying its global manufacturing footprint, and India has become an increasingly important production base as companies seek alternatives to China.

The air conditioner opportunity

India's air conditioner market has significant growth potential. Only a small share of Indian households own an air conditioner, but rising incomes and increasingly severe summer heat are driving rapid growth in demand. Air conditioners are one of the main products in LG's home appliances and air solution segment, which grew 20.9% in the quarter.

The company's strong balance sheet and cash generation give it the flexibility to invest in new businesses such as vehicle solutions while continuing to expand capacity in its core appliance and television businesses, positioning it to benefit from India's long-term consumption growth.

What comes next

Investors will watch the progress of the Sri City plant, the launch of the vehicle solutions business and LG's ability to sustain growth in its core businesses. With strong demand for appliances and televisions and a new avenue for growth in automotive electronics, LG Electronics India is positioning itself for its next phase of expansion.