LG Electronics India Ltd saw its shares jump by 6.14% in Monday's trading session on October 5, 2026, reaching an unprecedented high of Rs 1,825. This significant rise ended a two-session decline and was largely attributed to optimistic outlooks from several prominent financial brokerages.
Brokerages Project Strong Growth Trajectory
Motilal Oswal Financial Services (MOFSL) maintained a positive stance on LG Electronics, anticipating double-digit growth in the company's television, washing machine, and air conditioner segments for the second quarter of fiscal year 2027 (Q2 FY27). Refrigerator growth, however, is projected to be in the low single digits. MOFSL also forecasts substantial compounded annual growth rates (CAGRs) for LG Electronics' revenue, EBITDA, and PAT, estimating around 14%, 24%, and 25% respectively, over the FY26-29 period. The brokerage reiterated its 'BUY' rating, setting a target price of Rs 2,080.
Separately, Nuvama Institutional Equities echoed a similar sentiment, expecting LG Electronics to outperform peers in Q2, primarily due to strong performance in TVs and washing machines, coupled with strategic price adjustments to offset rising input costs. Nuvama listed LG Electronics among its preferred consumer sector investments, with a target price of Rs 1,990.
JM Financial also weighed in, projecting a 15% year-on-year revenue increase for Q2 FY27, reaching Rs 7,100 crore, predominantly fueled by the home appliances division. The firm estimates an EBITDA margin of 9.5% (up from 8.9% a year prior), with EBITDA at Rs 680 crore and a Profit After Tax (PAT) of Rs 480 crore.
Key Drivers for Margin Improvement and Expansion
Analysts point to several factors underpinning the expected margin improvements and overall growth. A richer product mix, a continued focus on premiumization, and increased localization of manufacturing are key contributors. LG Electronics proactively implemented a 5-6% price hike for air conditioners, effective October 1, to manage escalating input costs, though no similar hikes have been announced for other product categories.
Looking ahead, new product launches and an expansion of stock-keeping units (SKUs) within the value-driven essential series are expected to broaden the company's portfolio and market penetration. Medium-term growth is also anticipated from enhanced localization efforts, the ramping up of capacity at its Sri City facility (with compressor production starting in Q3 FY27, followed by AC manufacturing in Q4 FY27, and washing machine and refrigerator production over the subsequent 18 months), B2B segment expansion, and increased exports.