LG Electronics India Ltd Share Price – NSE /  BSE

Consumer Durables, Mid Cap

Around 1.52 crore shares, or nearly 2% of the company?s outstanding equity, have reportedly become eligible for trading following the end of the lock-in. Market participants noted that the expiry does not necessarily signal immediate selling, as it merely permits these shares to be traded.

The stock?s decline comes amid heightened investor caution typically seen around lock-in expiries, as additional free float can weigh on sentiment in the near term.

Meanwhile, LG Electronics India concluded an Advance Pricing Agreement (APA) with the Central Board of Direct Taxes on 5 January 2026, resolving transfer pricing matters for a nine-year period from 1 April 2014 to 31 March 2023.

Following the APA, contingent liabilities of Rs 172.44 crore related to direct taxes and Rs 315.30 crore linked to royalty payments to LG Electronics Inc. will become nil.

The settlement will result in a net tax expense of Rs 17.71 crore, excluding applicable interest. In addition, the company will pay Rs 3.86 crore to LG Electronics Inc. under secondary adjustment provisions in line with India?s transfer pricing regulations.

LG Electronics India, a subsidiary of South Korea-based LG Electronics, is one of India's leading consumer durables companies. It manufactures and sells a wide range of products, including TVs, refrigerators, washing machines, and air conditioners, serving both retail and institutional customers.

The company?s standalone net profit declined 27.3% to Rs 389.43 crore despite 1% increase in revenue from operations to Rs 6,174.03 crore in Q2 FY26 over Q2 FY25.

The stock was listed on the exchanges on 14 October 2025 at Rs 1,715, marking a premium of 50.44% over the issue price of Rs 1,140. The initial public offering of LG Electronics India was subscribed 54.02 times. The issue opened for subscription on 7 October 2025 and closed on 9 October 2025, with a price band of Rs 1,080 to Rs 1,140 per share.

At the current price, the stock is up 25.46% over its IPO price of Rs 1,140, but down 16.61% from its listing price of Rs 1,715.

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Following the signing of APA, contingent liabilities of Rs 172.43 crore related to direct taxes will become Nil. In Addition, contingency amount of Rs 315.30 crore related to royalty payments to LG Electronics Inc., Korea (Promoter) will also become Nil.

The company will incur net tax expense of Rs 17.71 crore (excluding applicable interest, which will be computed as per payment date). Further, LG Electronics India will be required to make net payment of Rs 3.85 crore to LG Electronics Inc. under the secondary adjustment provisions in compliance with India?s transfer pricing regulations.

Earlier, the company had filed advance pricing agreement application dated March 29, 2018, with the Tax Authorities of India for the period of 9 Years i.e. April 1, 2014 to March 31, 2023.

LG Electronics India (LEIL), a subsidiary of South Korea?based LG Electronics, is one of India?s leading consumer durables companies. It manufactures and sells a wide range of products, including TVs, refrigerators, washing machines, and air conditioners, serving both retail and institutional customers.

The company?s standalone net profit declined 27.3% to Rs 389.43 crore despite 1% increase in revenue from operations to Rs 6,174.03 crore in Q2 FY26 over Q2 FY25.

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Crisil Ratings stated that the company?s revenue remained flattish in the first half of fiscal 2026 due to moderation in sales of cooling appliances (ACs and refrigerators) in the first quarter led by early onset of monsoon and goods and services tax (GST)-related sale deferrals in the second quarter of fiscal 2026. The revenue is expected to start picking momentum in the second half of fiscal 2026, driven by GST rate cuts, wedding & festive season and upcoming summer seasons.

The operating margin improved by nearly 2% to 12.8% in fiscal 2025 due to softening of raw material prices and economies of scale. However, the margin moderated to 10.2% in the first half of fiscal 2026 due to elevated commodity prices and strong festive promotions amid weak demand, which led to increase in discounts amidst intense competition.

The company has taken price hikes of 2% post festive period in some of the product category, which along with expected stable demand in the second half of this fiscal is expected to improve profitability.

The financial risk profile remains robust, backed by strong networth and nil debt. Networth improved to Rs 5,961 crore as of 31 March 2025, as compared to Rs 3,764 crore a year ago.

Also, the company has capital expenditure (capex) of Rs 5,000 crore for the next 4-5 years for a greenfield manufacturing facility at Sri City (Andhra Pradesh) for ACs, AC compressor, washing machines and refrigerators in a phased manner. This phased investment is expected at Rs 1,000-1,200 crore per year and will be funded via internal cash accrual.

Liquidity has been strong, with cash and cash equivalents of Rs 3,741 crore as on 31 Marsh 2025, which increased to Rs 4,284 crore as of September 2025. Further, unutilised fund-based limit will aid liquidity.

The ratings continue to reflect the company?s leading position across diversified product portfolio, robust financial risk profile, strong operating capabilities and operational and technological links with LG Electronics Inc (South Korea).

These strengths are partially offset by exposure to intense competition in the consumer durables segment and susceptibility to volatility in raw material prices and foreign exchange (forex) rates.

LG India is a subsidiary of LG Electronics Inc, South Korea. The company has one of the widest product portfolios among consumer durables players in India.

The scrip shed 0.78% to end at Rs 1521.90 on the BSE on Friday.

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LG Electronics India announced that Crisil Ratings (CRISIL) has re-affirmed its ratings on the bank facilities of the Company at ?Crisil AAA/Stable/Crisil A1+'.

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