Q1 2027 LG Electronics India Ltd Earnings Call Transcript
Key Points
- Revenue grew 15.5% year-on-year to INR72.33 billion, with every major category achieving double-digit growth.
- EBITDA margin expanded by 110 basis points year-on-year to 12.5%, driven by a richer product mix, calibrated price increases, and operating leverage.
- Exports delivered 30% growth, reaching over 60 countries, and are margin-accretive compared to domestic sales.
- The Essential series sold over 0.5 million units in the first half of the calendar year, expanding market reach without diluting margins.
- The new compressor import policy is a positive for LG, as its in-house compressor production provides a cost advantage and supply security.
- Elevated raw material costs and currency headwinds pressured margins, requiring careful cost management and price increases.
- The Sri City plant investment will result in incremental costs in the near term, with benefits expected only after production ramps up.
- The company is at a preliminary stage in the hyperscale data center cooling segment, which is not expected to be a key driver in FY27.
- Dividend payout was reduced to fund the Sri City capex, with no immediate plans to increase payouts, which may disappoint income-focused investors.
- Geopolitical uncertainties, including the West Asia conflict, pose risks to the export business and overall operations.
Ladies and gentlemen, good day and welcome to the LG Electronics India Q1 FY 2027 earnings conference call. (Operator Instructions) I would like to inform you that the call is being recorded, and the audio call and transcript will be available on the company's website.
I would now like to hand the conference over to Mr. Rahul Arora, CEO of Ashika Institutional Equities. Thank you and over to you, Mr. Arora.
Thank you, Michelle. On behalf of Ashika Institutional Equities, I would like to welcome all the participants to the first quarter FY27 earnings conference call of LG Electronics India Limited. At the outset, I would like to thank the LG Electronics Management for giving us the opportunity to host the call.
And I would now like to hand over the call to Mr. Aditya Bhasin, Head of Investor Relations, LG Electronics India. Thanks, and over to you, Aditya.
Thank you, Rahul.
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