LG Electronics share price came under selling pressure in Friday’s trading session, November 14, falling 5% to the day’s low of ₹1,590 apiece as investors appeared disappointed with the company’s September-quarter numbers, which were released post-market hours on Thursday.
The company reported a ₹389 crore in Q2″>27.3% year-on-year decline in net profit to ₹389 crore in Q2, compared to ₹536 crore in the same period last year. Sequentially, net profit was also lower, as the home appliance maker had reported ₹513 crore in the first quarter of FY26.
Consumer durables companies faced weak demand, as consumers postponed spending until late September, when a broad-based consumption tax reduction came into effect, lowering prices on items ranging from soaps to electronic products.
Its cooling appliances division was impacted by early rains and lower temperatures, despite a sharp reduction in prices following the cut in indirect taxes. On the top line, the company posted a modest 1% YoY rise in revenue at ₹6,174 crore, while sequentially it was down 0.7% from ₹6,263 crore in the previous quarter.
Segment-wise, revenue from the Home Appliances and Air Solution segment remained flat at ₹3,947 crore, while revenue from the Home Entertainment segment rose 3% year-on-year to ₹2,261 crore.
LG Electronics trades 9% below listing-day highs
Today’s decline has pushed the stock 10% lower from its listing-day high of ₹1,749. The company’s shares made a blockbuster debut on Dalal Street on October 14, listing with a massive 50% premium at ₹1,710 over the issue price of ₹1,140 apiece.
This also marked the largest mainboard issue of over ₹10,000 crore to list with a 50% premium so far this year.
Soon after its market debut, domestic brokerage firms issued optimistic outlooks on LG Electronics India, initiating coverage with positive ratings and upbeat price targets, citing strong industry tailwinds, the company’s leadership position, and its export potential.
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