LG Electronics India is keeping its spirits high despite a challenging quarter marked by unseasonal weather, global tensions, and a GST restructuring pause. The company managed a 1% rise in revenue, continued to lead the market with an 8.9% EBITDA margin, and made impressive gains in TVs, refrigerators, and air conditioners.

Chief Sales Officer Sanjay Chitkara and Chief Accounting Officer Atul Khanna shared insights with ET Now, stressing that the tough times are just temporary and that consumer demand stays strong.

GST Pause, Not Demand Drop

Chitkara explained that the second quarter was disrupted by a GST change on September 22, causing a nearly six-week freeze on buying by consumers and dealers. "We have built LG not on short-term tactics but on long-term strategy," he said, highlighting that even with this freeze, LG bounced back spectacularly, recovering three months’ worth of sales in just 1.5 months. Brand health stayed solid and market shares climbed across categories.

LG’s market share hit record highs:

  • TVs: up by 1.4%, widening the lead over the No. 2 brand to 6.7%
  • Refrigerators: up 1%, with the gap growing to 6.2%
  • Washing Machines: maintaining a strong 16% lead over the nearest rival
  • Air Conditioners: crowned No. 1 in the overall AC category, not just the inverter segment

Margins Took a Hit but Will Bounce Back

LG’s EBITDA margin in Q2 was 8.9%, lower than the usual 12-13% due to GST delays, more promotions, and increased commodity costs. Atul Khanna assured, "We expect to surpass 8.9% margins in H2," emphasizing LG’s goal to return to double-digit margins soon.

The comeback plan includes:

  • More local manufacturing of parts like compressors, PCBs, and display modules
  • Price hikes of 1.5 to 2% in refrigerators and washing machines
  • Lower promotional spending after the festive rush
  • A growing share of premium products
  • Boost from B2B sales and service revenue

Bright Q3 Ahead

Chitkara shared that LG doesn’t chase quick profits at the expense of volume. "Market share drives revenue, and revenue drives profit," he said confidently. Q3 looks bright thanks to pent-up festive demand, price hikes already in place, localization savings, and strong sales in premium segments.

Expanding Across Market Segments

While dominating premium appliances, LG is also growing in mass-premium and entry-level markets with its new Essential Series. Products like the 8 kg front-load washing machine and 225-litre refrigerator are already out, with more models launching soon. Early feedback has been "very strong," according to Chitkara, with customers appreciating LG’s trusted quality at better prices.

Strategy for Growth and Margins

LG's winning formula includes heavy local component sourcing, strong retail partnerships, smart pricing and promotions, faster B2B and service growth, and a wider product range. Chitkara says these moves will "cumulatively push EBITDA higher and reinforce market leadership."

Looking Forward

Despite the GST hiccup and margin pressures, LG Electronics India stands tall—growing revenue, snapping up market share, and eyeing a solid return to double-digit EBITDA margins in the second half. With smart localization, price increases, a festive season boost, and a focus on premium products, LG is ready to light up the market once more.