LG Electronics India IPO Review

About the Company

Look around your home and there's a good chance an LG product is humming somewhere the fridge in the kitchen, the washing machine on the balcony, the TV in the living room, the AC keeping the summer out. LG is one of the names Indian households trust most for appliances, and in October 2025 its India arm came to the stock market.

LG Electronics India is the local arm of the South Korean giant LG Electronics, making and selling consumer durables since 1997. It's a leader across categories refrigerators, washing machines, televisions, air conditioners, microwaves holding the number one or number two spot in most of them.

It earns money selling these products to households and businesses, backed by two manufacturing plants in Greater Noida and Pune, a third coming up in Andhra Pradesh, and a distribution network reaching tens of thousands of stores. It's a straightforward, brand-led consumer business riding India's growing appetite for home appliances. Track its live price and listing data on the IPO GMP Live homepage.

Financial Snapshot

Let's start with the IPO, because it was a hit. LG Electronics India listed at around ₹1,710 in October 2025 a 50% premium over its ₹1,140 issue price after the offer was subscribed 38 times. For a large, well known brand, that was a strong debut.

The business numbers up to FY25 looked good too. Revenue grew from ₹20,109 crore in FY23 to ₹24,631 crore in FY25, and net profit rose to ₹2,203 crore.

Then FY26 disappointed. Revenue stayed flat at about ₹24,605 crore, and net profit actually fell 23% to ₹1,685 crore. An early monsoon hurt air conditioner and cooling sales, GST related deferrals dented demand, and rising copper and aluminium costs squeezed margins. It was a genuinely soft year.

Here's my concern. The stock now trades around ₹1,580, well above its issue price, which puts it at roughly 63 times earnings and that's on earnings that just shrank. You're paying a premium multiple for a company whose profit went backwards last year. The balance sheet is strong and debt free, with over ₹4,400 crore of cash, so there's no financial stress. But the valuation assumes a recovery that FY26 didn't deliver.

Strengths

• It's a market leader with a trusted brand. LG holds the number one or number two position across most home-appliance categories refrigerators, washing machines, ACs and TVs. That brand strength and deep distribution are hard for rivals to dislodge.
• The balance sheet is rock solid. The company is debt free with over ₹4,400 crore of cash, and it qualifies for PLI incentives worth around ₹882 crore. There's no financial stress here even in a soft demand year.
• The IPO and analysts back it. The offer listed at a 50% premium on 38 times subscription, and brokerages remain positive, with around 26 'buy' ratings and a target near ₹1,725. The market clearly likes the franchise.
• It rides India's durables growth. With two plants in Greater Noida and Pune and a third coming up at Sri City, LG is expanding capacity to serve India's long-term rise in appliance ownership.

Risks

• FY26 profit fell sharply. Net profit dropped 23% to ₹1,685 crore while revenue stayed flat. An early monsoon, GST-related deferrals and higher input costs all bit and a year of shrinking profit is the opposite of what the valuation assumes.
• It's expensive on falling earnings. At roughly 63 times earnings up from about 35 times at the IPO price the stock is pricey, and that multiple sits on profit that just declined. There's little room for further disappointment.
• Demand is seasonal and cost sensitive. A big chunk of sales depends on air conditioner and cooling demand, which swings with the weather, while copper, aluminium and currency moves hit margins directly. Earnings can be lumpy.
• The IPO was an exit, and there's no dividend. This was a 100% offer for sale by the Korean parent, so the company received nothing, and despite steady profits it doesn't currently pay a dividend.

Should You Buy, Hold, or Sell?

The IPO is behind us and it was a winner listed at ₹1,710, now around ₹1,580, still well above the ₹1,140 issue price. This is a call on a quality brand trading at a rich multiple after a soft year.

Conservative investors — the brand and balance sheet are reassuring, but ~63x earnings on falling profit is a lot to pay. Wait for a dip or for earnings to recover before buying.

Moderate investors — hold if you own it; for fresh money, accumulate slowly toward the ₹1,300 lows rather than at current levels.

Aggressive investors — analysts are bullish with targets near ₹1,725, so there's modest upside if FY27 demand bounces back. But the valuation leaves little cushion if it doesn't.

Honest take: a great brand and a strong balance sheet, but an expensive stock priced for a recovery that FY26 didn't show wait for a better entry.

IPO Objects of the Issue

This was a 100% offer-for-sale by the parent, LG Electronics Inc of South Korea, which sold a 15% stake. The company received no proceeds the entire amount went to the parent.

Contact Details

LG Electronics India Ltd. Plot No. 51, Surajpur Kasna Road, Surajpur Industrial Area, Greater Noida, Uttar Pradesh – 201306 🌐 www.lg.com/in

IPO Registrar — KFin Technologies Ltd. 📞 040-6716 2222 / 040-7961 1000 📧 einward.ris@kfintech.com 🌐 www.kfintech.com

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This page is not investment advice. GMP is indicative only. Please consult a SEBI-registered financial advisor before investing.