Shares of LG Electronics India Ltd fell sharply on Thursday after the company reported a steep 61.58 percent year-on-year decline in net profit for the December quarter of FY26.
The stock dropped as much as 8.35 percent to Rs 1,392 apiece on the National Stock Exchange (NSE). It opened the session with a gap-down of 7.16 percent and remained under pressure in early trade. By 11:20 am, it recovered slightly to trade at Rs 1,460.80, still down 3.82 percent.
Q3FY26 results disappoint investors
The sharp fall in the stock comes after the company reported net profit of Rs 89.67 crore in Q3FY26, compared with Rs 233.45 crore in the same quarter last year.
Revenue from operations remained largely flat at Rs 4,114.4 crore, down from Rs 4,395.53 crore in the year-ago period. Total expenses stood at Rs 4,038.36 crore during the quarter, declining 2.77 percent year-on-year.
Brokerage ICICI Securities said the performance was below expectations due to weaker post-festive demand and softness in trade and consumer sentiment. The brokerage noted that the company refrained from cutting prices to protect its brand positioning, which impacted margins. Higher commodity prices and currency depreciation also weighed on profitability.
This is the second quarterly earnings report since LG Electronics India listed in October last year. Despite the weak quarter, ICICI Securities retained its positive view on the company, citing its leadership in key categories and strong brand equity.
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