LG Electronics India, a wholly owned subsidiary of LG Electronics, manufactures and markets consumer electronics, home appliances, IT products and vehicle solutions in India, crossed 1 million air-conditioner sales in the first quarter of the calendar year 2026 and expects to exceed the 2 million-unit mark for the full year, Sanjay Chitkara, Director and Co-Chief Sales and Marketing Officer of the company, said.
He added that channel inventory has normalised and retail partners are preparing for the festival season in the second half of the year. The company could outperform its financial year guidance if current demand trends continue, he said.
The company is also looking to increase exports and expand its presence across product categories, including televisions, refrigerators and washing machines.
Chitkara said the company is benefiting from a strong summer season, improving consumer sentiment and easing external pressures.
“AC has become a necessary household item these days, and the penetration of air conditioners is just 11%,” he said.
Atul Khanna, Chief Accounting Officer, added that the company remains committed to its guidance of mid-teen revenue growth and early double-digit earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins for 2026, though current demand trends provide scope for improvement.
LG expects exports to contribute a larger share of revenue. Khanna said exports currently account for about 6% of the business and could move closer to double digits in FY27, supported by expansion into new markets.
Chitkara said air-conditioner demand has been supported by structural factors, including low penetration levels and changing consumer behaviour.
The company currently has a market capitalisation of ₹1.1 lakh crore, with its shares down around 3% over the past year.
To offset rising costs, LG implemented two rounds of price increases. According to Chitkara, air-conditioner prices have increased by roughly 10-12%, driven by higher energy-efficiency requirements and external cost pressures.
Despite the price hikes, company executives said demand has remained resilient. Khanna noted that consumers have accepted the increase because of improved product efficiency and regulatory compliance.
LG also maintained that it continues to hold leadership positions across several product categories. Chitkara said the company remains the market leader in air conditioners, televisions, washing machines and microwave ovens in value terms.
The company is also seeing growth in premium segments. According to Chitkara, LG’s market share in side-by-side refrigerators has crossed 40%, while its share in OLED televisions has exceeded 60%. Larger-screen televisions are contributing a growing portion of overall sales.
Khanna said the company is maintaining its 2026 outlook for now. However, he indicated that stronger-than-expected demand could lead to better performance.
When asked about longer-term targets, Chitkara said the company remains focused on expanding revenue and profitability. He added that LG would aim to surpass its previously discussed milestones as demand and market conditions evolve.
For the full interview, watch the accompanying video
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