LG Electronics India likely to post 15% revenue CAGR growth: Goldman Sachs

LG Electronics India shares are in focus today after global investment firm Goldman Sachs initiated coverage on the stock. LG Electronics India stock rose 1.5% in early morning trades on NSE with a day high of ₹1,576 apiece.

Goldman Sachs has given positive commentary on the consumer durables sector and LG Electronics stock. The investment firm expects the domestic consumer durables segment to grow at 10.2% CAGR over the next five years, supported by rising incomes, improving affordability, and growing adoption of appliances across households.

LG Electronics India is likely to be one of the key beneficiaries of this accelerated industry growth, as the company has strong positioning in premium segments and sustained innovation-led market leadership. Goldman Sachs expects LG Electronics India to deliver revenue growth at a 15% CAGR between FY26 and FY28, driven by premium category products and higher average selling prices.

Goldman Sachs believes LG Electronics has a strong focus on R&D, which helps to make innovative products for the domestic markets. The company also has access to global technology through its parent firm, LG Electronics Inc. This gives the company a competitive advantage.

High focus on local manufacturing

Besides this, the company has enhanced its focus on local manufacturing. In May 2025, LG Electronics commenced the construction of its third manufacturing facility in Sri City, Andhra Pradesh, with a total investment of ₹5,001 crore to boost exports and expand manufacturing in India. Experts believe that local manufacturing will help the company increase its margins in the long run.

LG Electronics India reports weak Q3 earnings

In Q3FY26, LG Electronics India reported weak earnings, with its net profit declining 61.58% year-on-year to ₹89.67 crore, impacted by lower margins due to high commodity prices, rupee depreciation and lower sales volume due to softness in post-festive demand. Meanwhile, its revenue from operations remained nearly unchanged at ₹4,114 crore, compared to ₹4,395.53 crore during the same time a year ago.

Key challenges

Goldman Sachs also highlighted some challenges that the company could face, including a rise in competition from domestic and global players, especially Chinese appliance companies. The recent rise in copper and aluminium prices could increase the input costs, and a rise in any potential royalty fees from the parent firm could impact financial performance.

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