LG Electronics Slides After Weak Q3 Numbers

LG Electronics India reported a weak set of numbers for the third quarter of FY26, with both revenue and profitability witnessing a sharp year-on-year decline. The company’s net profit fell nearly 62% to ₹89.7 crore in the October–December 2025 quarter, compared to over ₹230 crore in the corresponding period last year. The steep drop in earnings reflects continued pressure on margins and softer demand conditions during the quarter. Revenue from operations declined 6% year-on-year to ₹4,114 crore, down from around ₹4,474 crore in Q3 FY25. On a sequential basis as well, revenue saw a sharp fall from ₹6,174 crore reported in Q2 FY26, highlighting a notable slowdown during the quarter.

Operating performance also weakened considerably. EBITDA declined 43% year-on-year to ₹196 crore compared to ₹341 crore in the same period last year, indicating significant margin compression. The sharp contraction in operating profit suggests that the company was unable to fully offset elevated costs despite some moderation in input prices. Profit before tax dropped sharply to ₹151 crore from ₹320 crore a year earlier, further underscoring the pressure on overall profitability.

Total expenses during the quarter stood at approximately ₹4,038 crore. The cost of materials consumed remained the largest component at ₹2,988 crore, slightly higher than the previous year. Employee benefit expenses increased to ₹261 crore from ₹237 crore, while depreciation and amortisation expenses rose to ₹111 crore compared to ₹90 crore earlier. Finance costs also edged up to ₹9.32 crore. The rise in operating and fixed costs, even as revenue declined, significantly impacted margins and bottom-line performance.

The weakness was not limited to the December quarter alone. For the nine months ended December 2025, revenue from operations stood at ₹16,551 crore, slightly lower than ₹16,918 crore reported in the corresponding period last year. Net profit for the nine-month period declined sharply to ₹992 crore from ₹1,449 crore in the previous year, indicating sustained pressure across much of the financial year.

Following the earnings announcement, the stock reacted negatively in the market. Shares fell over 4% and witnessed intraday volatility of nearly 8% before recovering partially. The reaction reflects investor concerns around earnings visibility, margin sustainability and demand recovery in the consumer durables segment. Going ahead, market participants are likely to closely monitor management commentary on demand trends, pricing strategy, cost optimisation measures and margin recovery prospects. The company’s ability to stabilise performance and improve operating leverage will be key factors in determining the trajectory of the stock in the coming quarters.