LG Electronics India is gearing up for its IPO, a significant event in the Indian consumer electronics market. The IPO, valued at ₹11,607 crore, involves the parent company offloading 10.18 crore shares, representing approximately 15% of its stake in the Indian subsidiary. This move will reduce the parent's shareholding to around 85% post-listing. With the IPO opening for subscription on October 7, 2025, and closing on October 9, 2025, it's crucial to assess how LG Electronics India stacks up against its key competitors, including Samsung, Whirlpool, and Voltas.

Financial Performance

LG Electronics India has demonstrated robust financial performance in recent years. In FY25, the company's revenue from operations reached ₹24,367 crore, surpassing its listed peers such as Havells, Voltas, Blue Star and Whirlpool. This strong revenue figure makes LG Electronics the biggest consumer durables company in the Indian stock market. The company's EBITDA margin stood at nearly 13% in FY25, a significant increase from 9.5% in FY23. In comparison, Havells India reported an EBITDA margin of 9.78%, while Voltas, Blue Star, and Whirlpool each had margins of approximately 7%. LG's profit after tax (PAT) has risen steadily from ₹1,348 crores in FY23 to ₹2,203 crores in FY25.

LG Electronics India's earnings per share (EPS) for FY25 was ₹32.46, the highest among its peers, with Whirlpool at ₹28.30 and Blue Star at ₹28.76. The company's return on net worth for FY25 was a healthy 37.13%, significantly outperforming peers like Blue Star (19.27%), Havells (17.63%), and Voltas (12.76%).

Market Position and Brand Strength

LG Electronics India holds a strong position in the Indian market, with leadership in several key categories, including washing machines, refrigerators, air conditioners, and televisions. The company has a wide distribution reach, including 777 LG brand shops and 35,600 B2C touchpoints. LG enjoys market leadership or a top-three position in most categories, including a 34% share in washing machines, 30% in refrigerators, 51% in microwaves, and 28% in panel TVs.

In comparison, Voltas held a 23.4% market share in the room ACs segment in FY22. Voltas Beko, a joint venture, has crossed the 10% market share in multiple categories. While Whirlpool targets a 25% market share, the specific segments were not mentioned.

Samsung, though unlisted in India, is a significant competitor. In smartphones, Samsung held a 12.9% market share in India in 2025. During the first wave of the festive season in 2025, Samsung led smartphone sales with an 18% market share.

Valuation

The IPO values LG Electronics India at around ₹77,400-80,000 crore (approximately $8.7 billion). At the upper end of the price band, the issue is priced at a price-to-earnings multiple of around 47 times FY24 earnings. However, the company is seeking a price-to-earnings (P/E) multiple of 35, notably lower than the 48–65 range of peers such as Whirlpool of India, Havells India, Voltas, and Blue Star.

Growth Factors

LG Electronics India has several growth drivers. The company's revenue and net profit rose 10.8% and 28% annually from FY23 to FY25. The room air conditioner (RAC) category was the fastest-growing, recording a 15% CAGR in the past three years. The company expects this segment to remain its main growth driver. LG is constructing a third plant in Andhra Pradesh with a ₹5,001 crore investment, expected to be operational by March 2027.

Challenges and Opportunities

While LG Electronics India has a strong market position and financial performance, it faces challenges. The company generates the bulk of its revenue from its Home Appliances and Air Solution segment, making its performance closely tied to demand trends in these key categories. Margins could be under pressure due to fluctuations in input costs and foreign exchange volatility, given its dependence on imported components. A prolonged slowdown in consumer spending could limit short-term revenue growth.

Grey Market Premium (GMP)

The LG Electronics India IPO is commanding a grey market premium (GMP) of ₹315 per share as of October 7, 2025. Based on the IPO price of ₹1,140, the estimated listing price is around ₹1,455 per share, indicating an expected gain of approximately 27.6% per share.

Overall, LG Electronics India's IPO presents an opportunity for investors to participate in the growth of a leading consumer electronics company with a strong brand, robust financial performance, and a well-established market position.