LG Electronics India Limited has voluntarily submitted its Business Responsibility and Sustainability Report (BRSR) for FY 2025-26 to the stock exchanges, underscoring its commitment to transparency and responsible corporate governance. The report was filed pursuant to Regulation 34(2)(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. While BRSR preparation was not mandatory for the company for FY 2025-26—given that it was listed during the year—the company opted to prepare and disclose the report voluntarily. The BRSR also forms an integral part of the company's Annual Report for FY 2025-26.

Company Overview and Business Operations

LG Electronics India Limited, incorporated on 20 January 1997, is listed on both the National Stock Exchange of India Limited and BSE Limited. The company's paid-up capital stands at ₹6,78,77,23,920. Its business activities are split between manufacturing (89% of turnover) and trading (11% of turnover), covering products such as refrigerators, air conditioners, televisions, washing machines, microwave ovens, water purifiers, air purifiers, and compressors. The company operates 2 manufacturing plants and 49 offices across India, serving customers pan-India and exporting to 50+ countries. Exports contributed 5.65% of total turnover during FY 2025-26.

The following table summarises key CSR-related financial metrics for FY 2025-26:

Workforce Composition and Employee Well-Being

As at the end of FY 2025-26, the company employed a total of 3,238 employees and 4,430 workers. The workforce is predominantly male, with women comprising 7.5% of total employees and 3% of total workers. The company reported a permanent employee turnover rate of 12.19% (total) for FY 2025-26, compared to 13.67% in FY 2024-25. Permanent worker turnover stood at 0.93% for FY 2025-26, unchanged from FY 2024-25.

All permanent employees received 100% coverage under health insurance, accident insurance, and maternity benefits. The Board of Directors comprised 6 members, of whom 1 (16.66%) was female. Among Key Management Personnel, 3 positions were held, with no female representation. The median remuneration for male Board members was ₹60,40,000, while the sole female Board member received ₹40,30,000. Gross wages paid to females as a percentage of total wages stood at 3.53% in FY 2025-26, compared to 3.6% in FY 2024-25.

Environmental Performance

The company's total energy consumption for FY 2025-26 was 3,80,260.98 Giga Joules, compared to 3,38,910.69 Giga Joules in FY 2024-25. Renewable energy sources contributed 1,222.97 Giga Joules, while non-renewable sources accounted for 3,79,038.00 Giga Joules. Total water consumption was 4,54,215 kilolitres in FY 2025-26, down from 5,57,013 kilolitres in FY 2024-25. The company has implemented a Zero Liquid Discharge mechanism, with 100% of treated water reused within the compound boundary.

NOx emissions declined to 5.580 MT in FY 2025-26 from 7.164 MT in FY 2024-25, while SOx emissions fell to 0.782 MT from 1.492 MT. The company holds UL-Zero Waste to Landfill certification and has implemented solar power systems at its Noida facilities as part of its renewable energy transition. Manufacturing plants at Ranjangaon (Pune) and Greater Noida are compliant with applicable environmental approvals.

Health, Safety, and Human Rights

The company reported a Lost Time Injury Frequency Rate (LTIFR) of 0.09 per one million person-hours worked for employees in FY 2025-26, consistent with FY 2024-25. There were zero fatalities and zero high-consequence work-related injuries for both employees and workers in both years. A total of 1 sexual harassment complaint was filed under the POSH Act during FY 2025-26 (down from 2 in FY 2024-25), and all complaints were closed with 0 upheld. The company reported nil instances of discrimination, child labour, forced labour, or wage-related complaints in FY 2025-26.

All 3,238 employees and 4,430 workers received 100% coverage under human rights training during FY 2025-26. The company's occupational health and safety management system is certified to ISO 45001 and covers employees, workers, contractors, and relevant workplace activities.

CSR and Stakeholder Engagement

CSR is applicable to LG Electronics India under Section 135 of the Companies Act, 2013. The company's CSR initiatives during FY 2025-26 benefitted over 1,20,000 persons through its Nutrition Program, 1,200 through the LG Hope Technical Skill Academy, and 1,600 through the CSR Retail Skills Training Program—with 100% of beneficiaries from vulnerable and marginalized groups across all three programmes. Input materials sourced directly from MSMEs and small producers accounted for 17.39% of total inputs by value in FY 2025-26, up from 16.28% in FY 2024-25. Domestic sourcing stood at 53.67% in FY 2025-26, compared to 52.23% in FY 2024-25. Customer complaints received during FY 2025-26 totalled 85,715, compared to 71,743 in FY 2024-25, with no pending complaints at year-end. Shareholder complaints stood at 100 filed during FY 2025-26, with 1 pending at year-end. The company is affiliated with 7 national trade and industry associations, including CEAMA, RAMA, and MAIT, and reported no instances of anti-competitive conduct, corruption, or data breaches during the reporting period.

LG Electronics India Limited reported a net profit decline of 23.5% year-on-year to ₹16,850.93 million for the financial year ended March 31, 2026, driven by headwinds in commodity prices and foreign exchange volatility. Despite the profitability pressure, the company achieved a 1.0% rise in revenue from operations to ₹246,049.12 million, sustaining its position as the market leader in home appliances and consumer electronics in India. The results reflect the challenges of navigating macroeconomic uncertainties while executing strategic investments in manufacturing capacity and product premiumisation.

The filing, submitted to the National Stock Exchange of India Limited and BSE Limited on July 29, 2026, details the company’s performance under Regulation 34(1) and 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board of Directors did not recommend a dividend for the financial year, opting instead to retain earnings for future growth initiatives, including the upcoming manufacturing facility at Sri City, Andhra Pradesh. Statutory auditors M/s Price Waterhouse Chartered Accountants LLP issued an unqualified opinion on the financial statements.

Financial Performance Overview

Revenue from operations grew slightly to ₹246,049.12 million in FY26, up from ₹243,666.38 million in the previous year. The Home Appliances and Air Solution segment remained the primary contributor, accounting for 73.8% of total revenue, while the Home Entertainment division contributed 26.2%. Other income increased by 24.2% to ₹3,278.97 million, largely due to higher interest income on bank deposits.

Profitability metrics showed significant contraction. EBITDA declined to ₹27,362.02 million from ₹33,741.14 million in FY25, a decrease of 18.9%. Profit before tax fell by 22.4% to ₹22,995.11 million. The operating profit margin compressed to 8.18% from 11.20% in the prior year, reflecting the impact of rising input costs and strategic investments in go-to-market initiatives during festive seasons.

What the Numbers Show

The divergence between modest revenue growth and sharp profit contraction highlights the intense cost pressures facing the consumer durables sector. While revenue remained resilient due to strong brand equity and premiumisation trends, margins were squeezed by currency depreciation and commodity inflation. The company’s cash position strengthened significantly, with cash and cash equivalents rising to ₹44,762.65 million as of March 31, 2026, up from ₹37,414.73 million in the previous year. This robust liquidity supports ongoing capital expenditure, particularly the ₹50,010.00 million investment in the new Sri City facility, which is expected to operationalise by FY27.

Strategic Developments

LG Electronics India continued to expand its manufacturing footprint and export capabilities. The company launched its Essential Series range to target volume-driven segments while maintaining leadership in premium categories like French-door refrigerators and OLED televisions. Exports grew as a strategic lever, with the company expanding its reach to 22 countries across Asia, the Middle East, and Africa. The localisation rate stood at 55.2%, with plans to increase it further through deeper component sourcing and manufacturing investments.

The company also strengthened its B2B portfolio, deploying HVAC systems at high-profile projects such as the Seva Teerth building. In terms of governance, the Board re-appointed Dongmyung Seo as Whole-time Director and CFO for a further four-year term. The Annual General Meeting is scheduled for August 21, 2026, where shareholders will review these developments and approve related party transactions for the subsequent fiscal year.