LG Electronics shares jump 5% after robust Q1 earnings. What are Jefferies, other brokerages saying?

LG Electronics India released its results in the post-market hours of Thursday, with revenue from operations increasing around 15.5% YoY to Rs 7,233 crore during the April-June quarter of the ongoing financial year 2027, from Rs 6,263 crore reported in the same period last year. The company said revenue growth was led by premium demand across all categories.

EBITDA increased 26% YoY to Rs 904 crore during the quarter under review, while EBITDA margin expanded by 106 basis points to 12.5%, from 11.4% a year-ago. “This was a quarter where profitability outpaced revenue, driven by a richer premium mix, better operating leverage on higher volumes and continued cost discipline,” the company said.

What distinguished the quarter was the breadth of the growth, LG Electronics said, adding that every category contributed to growth. Televisions led on consumer interest for larger screens, refrigerators grew on premium capacities, air conditioners grew on extended summer demand, and washing machines kept pace with peak-season categories despite being out of season, it noted. This combination reflects growth that is fundamental and portfolio-led, not dependent on any single season or category, it further said.

consumer durables market is undergoing a structural shift towards premium, technology-led & energy-efficient products and this quarter demonstrates that our portfolio is built for precisely that shift. Profit grew at nearly twice the pace of revenue, and every category contributed, which tells us the growth is durable rather than seasonal. Our export business to key global markets continues to grow, and with new capacity coming on stream at Sri City, that momentum will only strengthen further. We will continue to drive premiumisation, scale our B2B and export businesses, and strengthen India's role as a manufacturing and export hub for LG. We see substantial headroom for growth in this market and remain committed to building a stronger, future-ready business that creates sustained value for our consumers and stakeholders,” said LG Electronics India Managing Director Hong Ju Jeon.

Also read |LG Electronics India Q1 Results: PAT rises 27% YoY to Rs 653 crore; revenue up 15

Jefferies on LG Electronics share price

Jefferies maintains its Buy rating on LG Electronics India with a target price of Rs 1,810, implying 15% upside. The brokerage estimates a strong 25% FY26-28E EPS CAGR, supported by a premium product mix and higher utilisation at newly commissioned capacities. It expects annual capex of Rs 12-15 billion over FY26-29E to fund construction of the Sri City plant. Despite the investment, RoCE is estimated to remain strong at 30-33%, while RoE is expected at 24-25% over FY26-29E.Jefferies said LG Electronics India currently trades at 44x one-year forward PE, in line with its historical average, and has set a target PE multiple of 45x, factoring in industry-leading margins and return ratios despite Middle East disruption. Key risks include a slowdown in demand, delays in the Sri City plant, loss of market share and raw material or INR volatility.

Nuvama on LG Electronics share price

Nuvama said LG Electronics delivered an excellent show amid headwinds. The company posted strong Q1, with management now expecting to surpass previous mid-teens revenue growth and early double-digit FY27 EBITDA margin guidance.The brokerage raised its FY27 EPS estimates by 2% to reflect the Q1 beat. It maintained its ‘Buy’ call on the stock, but increased its target price to Rs 1,910 apiece from Rs 1,820 apiece. The latest target price implies an upside potential of more than 21% from the stock’s previous closing price.

Nuvama named LG Electronics its top pick in the consumer durables space, adding that its Q1 performance is superior to most peers, reflecting strength of portfolio diversification, dominance and execution.

Motilal Oswal on LG Electronics share price

Motilal Oswal Financial Services said LG Electronics India reported a robust set of results due to strong performance in both segments, driven by volume and value-led growth. Margin expansion was driven by operating leverage from higher volumes, a richer premium mix and strong home entertainment demand.Despite geopolitical and macroeconomic headwinds, pricing discipline, operational efficiencies and localization are expected to support margins, underpinning confidence in achieving mid-teen revenue growth and an early double-digit EBITDA margin, the domestic brokerage noted, while maintaining its ‘Buy’ call on the stock.

LG Electronics share price

LG Electronics shares have marginally declined over the past week, but have gained more than 3% in one month. The stock is overall up over 6% in 2026 so far.The company currently has a market capitalisation of more than Rs 1.07 lakh crore.

Also read |Q1 earnings show resilience as demand, cost headwinds prove less severe than expected: ICRA

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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