LG Electronics India remains upbeat about its growth trajectory despite a tough quarter marked by unseasonal weather, geopolitical uncertainties and a temporary freeze in sales due to GST restructuring. The company reported 1% revenue growth, an industry-leading 8.9% EBITDA margin, and significant market share gains across TVs, refrigerators and ACs.
Chief Sales Officer Sanjay Chitkara and Chief Accounting Officer Atul Khanna — told ET Now that the challenges were temporary and demand fundamentals remain intact.
GST-led sales pause, not a demand issue
Chitkara said Q2 was distorted by the 22nd September GST recalibration, which froze consumer and dealer purchases for nearly six weeks.
But despite this disruption, LG recovered three months’ worth of sales in 1.5 months while brand health remained strong and market share improved sharply across categories. “We have built LG not on short-term tactics but on long-term strategy,” Chitkara said.
LG’s market share achieved historic highs:
- TVs: +1.4% (gap with No. 2 widened to 6.7%)
- Refrigerators: +1% (gap widened to 6.2%)
- Washing Machines: ~16% lead over No. 2
- Air Conditioners: Now No. 1 in overall AC category, not just inverter ACs
Margins hit by promotions & commodity costs: Set to improve
LG’s Q2 EBITDA margin came in at 8.9%, down from its typical 12–13%.
Khanna explained the dip was due to GST deferment impacting volumes, higher promotional spending as well as some commodity cost pressures. “We expect to surpass 8.9% margins in H2,” Khanna said, adding that LG’s long-term profile remains in the double-digit EBITDA range.
LG Electronics India margins are expected to rise in the second half due to
- Localized component manufacturing (including heat exchangers, PCBs, compressors, display modules)
- 1.5–2% price hikes in refrigerators and washing machines
- Lower promotional intensity post-festive season
- Greater mix of premium products
- Boost from B2B and service revenue streams
Q3 outlook: Higher prices, better mix, stronger demand
Chitkara reiterated that LG never chases short-term margins at the cost of volume leadership. “Market share drives revenue, and revenue drives profit,” he said.
Q3 is expected to benefit from pent-up festive demand, rebound after GST pause, already implemented price increases , localization-driven cost savings and strong premium segment traction,
Both executives affirmed that Q3 and Q4 are set to show better topline and margin performance.
Premium + Essentials: LG Expands at both ends of the ,market
While maintaining leadership in premium appliances, LG is also expanding its presence in the mass-premium and entry-level segments through its newly launched Essential Series.
New products like 8 kg front-load washing machine, 225-litre refrigerator have been launched. Two more models in each category are coming this year
Early response has been “very strong,” Chitkara said, noting that the lineup offers LG-level quality and service at more accessible prices.
Strategic levers for margin and growth acceleration
LG’s growth strategy hinges on heavy local component manufacturing (compressors, heat exchangers, PCBs, display modules), stronger retail partnerships, balanced pricing and promotions, faster growth in B2B and services and wider product portfolio across price points.
“These levers will cumulatively push EBITDA higher and reinforce market leadership,” Chitkara said.
Steady return toward double-digit EBITDA margins
Despite a GST-driven slowdown and margin pressure, LG Electronics India delivered resilient performance, gained market share, and strengthened its leadership. With localization, price hikes, a strong festival season, and premiumization, the company expects a stronger H2 and a steady return toward double-digit EBITDA margins.