LG Electronics India Limited – IPO Reviews 2025, Analysis and Notes

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Key Highlights

Company Background:-

LG Electronics India Limited was incorporated in 1997 and has been operating in India for over 28 years as a leading player in home appliances and consumer electronics. It is a subsidiary of LG Electronics Inc., a global technology pioneer. The company commands a dominant market share across key product categories such as washing machines, refrigerators, air conditioners, and televisions in India, supported by a vast distribution and after-sales service network across the country. It operates two manufacturing units in Noida and Pune, with plans to expand further by setting up a new manufacturing facility in Andhra Pradesh.

Market Opportunity:-

India’s consumer electronics market, currently valued at over $80 billion, is expected to grow steadily due to rising incomes, lower product penetration, and supportive government initiatives. Growing demand for premium and smart appliances, along with fast-expanding urban and young demographics, provides a strong runway for future expansion for established brands like LG. India’s consumer electronics market, valued at over $80 billion in 2024, is poised for steady growth with rising incomes, urbanization, and low appliance penetration. Increasing demand for premium and smart home products presents strong future opportunities for established companies like LG.

Key Strengths:-

The company’s key strengths lie in its dominant market leadership with strong market shares across refrigerators, inverter ACs, washing machines, and televisions. It boasts a robust pan-India distribution and after-sales service network with over 35,600 touchpoints and 1,006 service centers supported by a large skilled workforce. The company’s strong manufacturing capabilities, with units in Noida and Pune and an upcoming plant in Andhra Pradesh, enhance operational efficiency and scale. Its parentage under LG Electronics, a global leader, brings strong brand recognition and access to innovative technologies tailored for Indian consumers.

Key Strategies:-

The company’s key strategies focus on expanding its manufacturing footprint with a new $600 million facility in Andhra Pradesh to boost domestic capacity and export potential. The company aims to strengthen its leadership in premium home appliances by offering innovative and energy-efficient products tailored to Indian consumer needs. It plans to leverage its extensive pan-India distribution and after-sales network to deepen market penetration, including rural and semi-urban areas. LG also emphasizes building strong brand loyalty through superior service experience, while maintaining financial discipline by being debt-free and funding growth through internal accruals. Additionally, LG targets growing exports to diversify revenue and capitalize on global market demand for premium appliances.

Financials:-

Between FY23 and FY25, the company delivered strong top-line growth, with revenue rising from ₹19,868 crore to ₹24,366 crore, reflecting a CAGR of 10.8%. Backed by strategic initiatives and improved operational efficiencies, profitability saw a sharp uptrend — EBITDA grew from ₹1,895 crore to ₹3,110 crore, translating into a 28% CAGR, while PAT registered a healthy CAGR of 27.8% over the same period.

Valuation:-

LG Electronics India IPO is attractively valued at a P/E of 35.1x, cheaper than peers, and offers strong market leadership with robust financials. Long-term investors are recommended to subscribe for superior growth potential.

Key Risks:-

Key risks include intense competition in the consumer durables market, which could pressure market share and margins. Dependence on the parent company for technology and royalty payments may impact profitability. Additionally, any disruptions in the supply chain or raw material costs can affect manufacturing efficiency and costs. The company also faces risks from macroeconomic factors such as currency fluctuations and changes in regulatory policies.

Issue Highlights

Offer Structure

Lead Book Running Managers

• Morgan Stanley India Co. Pvt. Ltd.

• JP Morgan India Pvt. Ltd.

• Axis Capital Ltd.

• BOFA Securities India Ltd.

• Citigroup Global Markets India Pvt. Ltd.

Registrar to the Offer

Kfin Technologies Ltd.

Research Analyst

Rajan Gupta
rajan.gupta1@religare.com

Research Team

Ajit Mishra – ajit.mishra@religare.com
Abhijeet Banerjee – abhijeet.banerjee@religare.com
Gaurav Sharma – gauravsharma2@religare.com
Ashwani Harit – ashwani.harit@religare.com
Divya Parmar – divya.parmar@religare.com
Vinay Kalani – vinay.kalani1@religare.com
Rajan Gupta – rajan.gupta1@religare.com

• Author: Religare Broking
• Last Updated: October 6, 2025