LG Electronics India Limited has received a Show Cause Notice from the Joint Commissioner of GST, Corporate Circle-2, Greater Noida, demanding a total of Rs 116.72 crore including penalty for the financial year 2021-22. The notice, dated May 26, 2026, alleges that the company claimed excess Input Tax Credit (ITC) based on a comparison of data auto-reflected in the GSTN portal and the claims made in monthly returns. The company maintains that the ITC claimed is within the ambit of GST provisions and views the matter as a reconciliation issue.

The demand comprises a principal tax amount of Rs 58.36 crore and an equivalent penalty of Rs 58.36 crore. The tax authority issued the notice under Section 74 of the Central Goods and Services Tax Act, 2017, and the Uttar Pradesh Goods and Services Tax Act, 2017, read with Section 20 of the Integrated Goods and Services Tax Act, 2017. The discrepancy arose from differences between Table 8A of the GSTR-9 Annual Return and the figures reported in the GSTR-3B Monthly Return.

LG Electronics India stated that there is no impact on its financials or operations as a result of this notice. The company asserts that the Input Tax Credit claimed is valid and compliant with GST regulations. Consequently, it does not anticipate any material financial liability arising from the current demand.

In response to the communication, the company plans to file a formal reply to the Show Cause Notice within one month. The response will include evidence demonstrating that the company has not claimed any excess Input Tax Credit. The company is confident in its position regarding the correctness of its tax filings.

The following table outlines the key details of the Show Cause Notice:

LG Electronics India Limited announced its financial results for the quarter and year ended March 31, 2026, reporting a decline in annual profitability despite achieving record quarterly revenue. For the full year FY26, net profit decreased by 23.5% to ₹16,851 million compared to ₹22,033 million in FY25. Revenue from operations for the year rose to ₹246,049 million from ₹243,666 million in the previous year. Total income for FY26 stood at ₹249,328 million. The Board of Directors approved the financial results at a meeting held on May 21, 2026. In continuation of this disclosure, the company has provided the link to the audio recording of the earnings call held on May 22, 2026.

Quarterly Financial Highlights

Revenue from operations for Q4 FY26 reached ₹80,535 million, an increase from ₹74,484 million in the corresponding quarter of the previous year. However, net profit for the quarter declined to ₹6,927 million from ₹7,545 million in Q4 FY25. EBITDA for the quarter stood at ₹9,450 million, with the EBITDA margin contracting to 11.7% from 14.1% in the year-ago period.

Annual Performance and Expenses

The company reported total expenses of ₹226,333 million for the year ended March 31, 2026, compared to ₹216,675 million in the previous year. The cost of materials consumed for FY26 was ₹150,167 million. Profit before tax for the year stood at ₹22,995 million, down from ₹29,631 million in FY25. The auditors provided an unmodified opinion on the annual audited financial results.

Segment Results

The Home Appliance & Air Solution segment delivered revenue of ₹65,162 million in Q4 FY26, while the Home Entertainment segment revenue grew to ₹15,372 million. For the full year, the Home Appliances and Air Solution division reported revenue of ₹181,604 million, and the Home Entertainment division recorded revenue of ₹64,444 million. Total assets as of March 31, 2026, stood at ₹136,362 million.

Strategic and Corporate Developments

The Board appointed M/s. Dhananjay Shukla & Associates as Secretarial Auditor for a term of five years from 2026-27 to 2030-31, subject to shareholder approval. Additionally, M/s S S Kothari Mehta & Co. LLP, M/s T R Chadha & Co LLP, and M/s Sharp & Tannan Associates were appointed as Internal Auditors for the financial year 2026-27. The company noted that new labour codes notified by the Government of India resulted in an incremental impact of ₹124.50 million towards gratuity and compensated absences for the year.