CLSA On LG Electronics: LG Electronics India is heading into the FY27 festive season with more than just a strong demand cycle working in its favour, analysts said.
Premiumisation, pricing power, capacity additions and an aggressive export push are emerging as multiple growth levers, according to CLSA.
Following the company's Investors Forum 2026 (IF26) interaction, CLSA analysts Indrajit Agarwal, Maulika Agarwal and Mohit Jain retained their ‘Outperform' rating on LG Electronics India with a target price of Rs 1,835, implying around 10% upside from the current market price of Rs 1,696.90.
The brokerage said LG Electronics India remains confident of delivering profitable, broad-based growth while prioritising value market share over chasing volumes.
Premiumisation Remains A Key Growth Driver
LG Electronics India said the shift towards premium products that emerged after Diwali FY26 has continued across categories, with GST benefits providing an additional boost.
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The company expects this premiumisation trend to remain intact through the FY27 festive season, while higher channel stocking is already underway.
LG Electronics India has also reiterated its FY27 guidance of mid-teen revenue growth and early double-digit margins. Margin expansion in the first quarter was supported by pricing and operating leverage amid high volume growth.
The company recorded around 15% volume growth in 1QFY27, alongside a 7-8% price increase across products in April.
TVs, ACs, Washing Machines Keep Growth Broad-Based
The growth story is not dependent on a single product category.
In televisions, the earlier launch of its new line-up in March 2026, compared with the usual May launch, supported demand. LG Electronics India expects around 25% growth to sustain through the festive season, with a continued focus on the 55-inch-and-above segment and plugging product gaps.
Air conditioners are also seeing healthy channel demand, with repeat retail orders providing visibility. The upcoming FY27 capacity at Sri City will be dedicated entirely to ACs.
The company currently uses its compressor production captively but plans to begin external compressor sales in one to two years, opening another potential revenue stream.
Premiumisation is also visible in home appliances. The 8kg-plus washing machine segment is growing more than 50%, while dishwasher revenue has expanded around 70%.
Exports Could Change The Growth Mix
One of the more major medium-term opportunities highlighted by CLSA is LG Electronics India's export ambition.
Exports currently account for around 6% of revenue, but the company aims to increase this to approximately 20% over the next three years.
That shift could be important not only for revenue growth but also for profitability, with export margins higher than domestic sales.
LG Electronics India plans to target developed markets through its existing product portfolio, while its Essential series is aimed at developing markets. The latter currently targets Tier 2 and Tier 3 cities, with a stronger presence in northern and western India.
CLSA Maintains Outperform
CLSA said the company's confidence in sustaining early double-digit margins is supported by premiumisation, healthy retail demand and continued pricing power.
Beyond the immediate festive-season opportunity, the brokerage highlighted capacity additions, future compressor sales and the export ramp-up as additional avenues for expansion.
That said, CLSA retained its ‘Outperform' rating on LG Electronics India with a target price of Rs 1,835.
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