LG Electronics India shares rally 4%; Morgan Stanley says company stands out across many categories

The stock rose after two leading investment firms shared their views on the company.

Morgan Stanley, according to reports, said that LG Electronics India stands out across many categories in a highly competitive consumer durables market with industry-leading margins and best-in-class capital efficiencies. The financial services firm added that it expects LG India's revenues and margins to be driven by its new capacity and greater contribution from exports and B2B business.

Moreover, it forecasts earnings to fall 9% YoY in FY26 (led by the AC segment), with a 16% earnings CAGR from FY26 to FY28e.

Meanwhile, JPMorgan, according to news reports, has initiated coverage on LG Electronics India, citing the company’s strong position in India’s growing consumer discretionary market.

The investment bank views LGEL as "an attractive play on rising consumer discretionary spend in India," noting that home appliance products are increasingly becoming essential purchases rather than optional ones for Indian consumers, which creates a "long growth runway ahead" for the company.

"Following what JPMorgan describes as a "soft" first half of fiscal year 2026, the financial services firm expects gradual improvement in LGEL’s growth trajectory driven by favourable macroeconomic factors, including GST, interest rate, and income tax cuts, alongside the company’s efforts to expand its product range and distribution reach," said a report by Investing.com.

LG Electronics Q2 FY26 Results

LG Electronics India reported a 27.3% fall in its net profit to ₹389.43 crore for the September quarter of FY26 (Q2 FY26).

The company, which was listed on October 14, 2025, had a net profit of ₹535.70 crore during the July-September period a year ago, according to a regulatory filing from LG Electronics India Ltd.

Its revenue from operations was almost flat at ₹6,174.02 crore in the September quarter of FY26. It was ₹6,113.88 crore in the corresponding period a year ago.

Total expenses of LG Electronics India were ₹5,728.95 crore, up 5% in the second quarter of FY26.

This is the maiden quarter results filing of LG Electronics India, part of the South Korean chaebol LG Electronics Inc.

A "chaebol" is a large, family-controlled South Korean industrial conglomerate that operates across multiple, diversified industries, such as Samsung, LG, and Hyundai.

In the first half (H1) of FY26, LG Electronics' total income was marginally down at ₹12,591.17 crore.