LG Electronics India shares rose nearly 8% on August 14, making the company one of the top mid‑cap gainers for the day. The rally followed the announcement of the company’s first‑quarter FY27 results, which showed strong growth across revenue, profit and margins.
At the close, the stock traded at Rs 1,700 on the NSE, up 7.8%. This price gives the company a market capitalisation of about Rs 1.15 lakh crore and a year‑to‑date gain of 14.5%. In contrast, the Nifty 50 has fallen 6.9% so far this year.
The Q1 FY27 results revealed a 27.2% year‑on‑year increase in net profit to Rs 652.8 crore from Rs 513.2 crore. Revenue grew 15.5% to Rs 7,233.3 crore, while EBITDA rose 26.2% to Rs 904.2 crore. EBITDA margin expanded to 12.5% from 11.4%.
Brokerages reacted positively. CLSA kept its “Outperform” rating and set a target price of Rs 1,885, suggesting more than 19% upside from the Thursday close. The rating was based on stronger margins in the home entertainment business and a richer premium‑product mix.
CLSA also highlighted broad‑based growth across appliances, entertainment, price points and exports. It noted the company’s FY27 guidance of mid‑teen revenue growth and an early double‑digit EBITDA margin.
Jefferies maintained a “Buy” rating with a target price of Rs 1,815. The brokerage cited the 27% profit growth, driven by premiumisation, operating leverage, price hikes and cost controls. It also mentioned localisation and backward integration of compressors as additional strengths.
Jefferies pointed out the growing penetration of the LG Essential Series in tier‑2 and tier‑3 markets, indicating the company’s effort to expand beyond premium products and larger urban markets.
LG Electronics India manufactures and markets consumer electronics, home appliances and IT products across India.