Shares of LG Electronics India jumped 9% after reporting quarterly results that slightly beat profit expectations despite a revenue decline, signalling cautious optimism among investors amid a complex global economic backdrop.
LG Electronics India shares rose after the company posted quarterly results that came in slightly ahead of expectations on profit, even as revenue matched analyst forecasts. The stock gained 9.0% to ₹1,730 after the update, with statutory profit per share of ₹9.62 just above the market’s estimate, according to the Simply Wall St report.
The numbers, however, pointed to a mixed operating picture. ICICI Direct said LG Electronics India’s revenue in the quarter fell 6.4% from a year earlier to ₹4,114 crore, with pressure from weaker operating leverage, higher raw material costs and currency headwinds. Earnings before interest, tax, depreciation and amortisation came in at ₹196 crore, with a margin of 4.8%, while profit after tax dropped sharply from both the previous year and the previous quarter. Within the business, home appliances and air solutions saw a decline, while home entertainment recorded modest growth.
Even so, analysts have turned a touch more constructive on earnings. Simply Wall St said the consensus now points to revenue of ₹281.4 billion in 2027 and earnings per share of ₹33.30, both slightly higher than the previous round of estimates. StockAnalysis separately shows forecasts calling for revenue of about ₹279.82 billion in the current fiscal year and ₹313.67 billion next year, alongside rising earnings per share. The consensus price target remains at ₹1,785, suggesting that the improved profit outlook has not yet shifted the broader valuation view much.
The wider backdrop is also important. LG Electronics India reported full-year revenue of ₹246.05 billion, up 1.0%, while StockAnalysis said the shares recently traded at ₹1,510.20 and carried a forward price-to-earnings ratio of 46.60. The company has also said it intends to double exports next year, with a focus on premium products and overseas markets, and it recently announced long-term solar power purchase agreements as part of its first captive renewable energy project in India. That leaves investors weighing a modest earnings upgrade against uneven near-term trading.
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