LG Electronics India FY25 Profit Soars 46 percent Amid IPO Preparations

LG Electronics India (LGEI) posted a remarkable 45.8 percent year-on-year rise in profit, reaching ₹2,203.35 crore for FY25. Revenue from operations grew 14.1 percent to ₹24,366.64 crore, according to the latest RoC filings. The surge in profitability comes as the company prepares for its Initial Public Offering (IPO), with its South Korea-based parent, LG Electronics Inc., planning to sell a 15 percent stake via Offer for Sale (OFS).

• FY25 net profit up 45.8% to ₹2,203.35 crore

• Revenue from operations rises 14.1% to ₹24,366.64 crore

• Parent company to sell 15% stake in LGEI IPO

Total Income and Pre-Tax Profits See Strong Gains

Including other income, LGEI’s total income increased 14.25 percent to ₹24,630.63 crore. Pre-tax profit surged 45.5 percent, underscoring robust operational performance across the appliances and consumer electronics portfolio. For comparison, in FY24, the company had reported a post-tax profit of ₹1,511.07 crore and revenue from operations of ₹21,352 crore.

• Total income grows 14.25% to ₹24,630.63 crore

• Pre-tax profit rises 45.5% YoY

• FY24 post-tax profit stood at ₹1,511.07 crore

Also Read : TCS Q2 Net Profit Up 1.4 percent YoY; Declares Dividend, Unveils 1 GW AI Datacentre

Royalties and Tax Expenses Reflect License Agreement Obligations

Under the license agreement with LG Electronics Inc., LGEI pays royalties for the use of technology and the brand name. In FY25, royalty payments increased 12.74 percent to ₹454.61 crore. Meanwhile, total tax expense rose 44.42 percent to ₹759.76 crore from ₹526.05 crore in FY24, reflecting both higher profits and statutory obligations.

• Royalties to the parent company increased to ₹454.61 crore

• Tax expenses up 44.42% to ₹759.76 crore

• Payments reflect compliance with license and regulatory requirements

Total Expenses and Advertising Spend Rise

LGEI’s total expenses climbed 11 percent in FY25 to ₹21,667.52 crore. Advertising and promotional costs increased 7.27 percent to ₹1,009.12 crore, highlighting the company’s continued investment in brand visibility and market penetration in India.

• Total expenses rose 11% to ₹21,667.52 crore

• Advertising spend up 7.27% to ₹1,009.12 crore

• Marketing investments support brand growth ahead of IPO

Revenue Contribution by Product Segment

The refrigerator business remained the largest revenue driver, contributing ₹6,696.45 crore or 27.48 percent of LGEI’s total turnover. Air conditioners accounted for ₹5,270.82 crore (21.63 percent), washing machines ₹5,041.70 crore (20.69 percent), and LED/LCD televisions ₹4,924.81 crore (20.21 percent). The company earned ₹1,451.2 crore from exports while imports stood at ₹9,323.1 crore, reflecting the global nature of its supply chain.

• Refrigerators led revenue at ₹6,696.45 crore

• Air conditioners, washing machines, and TVs contributed over 60% collectively

• Export earnings at ₹1,451.2 crore; imports ₹9,323.1 crore

IPO Plans and Market Outlook

LG Electronics India’s upcoming IPO positions it as the second South Korean firm to tap the Indian stock market after Hyundai Motors India’s listing in October last year. The OFS by LG Electronics Inc. is expected to attract strong interest from investors given the company’s consistent revenue growth, robust profit margins, and leadership in consumer electronics.

• IPO to include 15% stake sale by parent company

• LGEI is the second South Korean firm to list in India after Hyundai Motors

• Strong profitability and segment diversification enhance investor appeal

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