LG Electronics India Limited voluntarily submitted its Business Responsibility and Sustainability Report (BRSR) for FY2025-26 to the National Stock Exchange of India Limited and BSE Limited on July 29, 2026. Although the company was listed during the financial year, making BRSR preparation non-mandatory under Regulation 34(2)(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, it opted to file the report to demonstrate transparency and corporate governance. The report details significant improvements in environmental efficiency, workforce safety, and stakeholder engagement, signaling a strong commitment to sustainable business practices beyond regulatory minimums.

Business Operations and Financial Overview

LG Electronics India Limited, incorporated on January 20, 1997, operates two manufacturing plants and 49 offices across India. Its business is primarily driven by manufacturing, which accounted for 89% of turnover, while trading contributed 11%. The company reported a total turnover of ₹2,46,049 million and a net worth of ₹76,291 million for FY2025-26. Exports contributed 5.65% of total turnover, with products sold in over 50 countries. The paid-up capital stands at ₹6,78,77,23,920.

Environmental Performance and Efficiency

The company demonstrated improved resource efficiency in FY2025-26. Total water consumption decreased to 4,54,215 kilolitres from 5,57,013 kilolitres in FY2024-25, while total energy consumption rose slightly to 3,80,260.98 Giga Joules from 3,38,910.69 Giga Joules. Renewable energy sources contributed 1,222.97 Giga Joules. The company maintains a Zero Liquid Discharge mechanism, reusing 100% of treated water within its compound boundary. Greenhouse gas emissions saw an increase in Scope 1 emissions to 4,455.82 MTCO2e from 2,778.57 MTCO2e, while Scope 2 emissions rose to 61,407.49 MTCO2e from 60,449.36 MTCO2e.

Workforce Safety and Human Rights

Safety metrics remained stable with a Lost Time Injury Frequency Rate (LTIFR) of 0.09 per one million person-hours worked for employees, consistent with FY2024-25. There were zero fatalities and zero high-consequence work-related injuries. The company reported one sexual harassment complaint under the POSH Act during FY2025-26, down from two in the previous year, with none upheld. All 3,238 employees and 4,430 workers received 100% coverage under human rights training. The workforce comprised 3,238 employees (7.5% female) and 4,430 workers (3% female).

CSR and Stakeholder Engagement

Under Section 135 of the Companies Act, 2013, LG Electronics India’s CSR initiatives benefited 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. All beneficiaries belonged to vulnerable and marginalized groups. Customer complaints received totaled 85,715, up from 71,743 in FY2024-25, with no pending complaints at year-end. Shareholder complaints stood at 100 filed, with one pending.

LG Electronics India Limited received a favorable order from the Income Tax Appellate Tribunal (ITAT) on July 29, 2026, which deleted tax additions totaling approximately INR 1,305 Crores. The ruling resolves disputes spanning five financial years — FY 2014-15, FY 2016-17, FY 2017-18, FY 2019-20, and FY 2021-22 — covering both Transfer Pricing and Corporate Income Tax matters. This outcome eliminates outstanding tax demands against the company, providing clarity on its tax liabilities for these periods.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Anuj Goyal, Company Secretary and Compliance Officer, signed the intimation to the National Stock Exchange of India Limited and BSE Limited on July 30, 2026. The ITAT Delhi bench passed the appeal order after reviewing the company’s challenges to the Income Tax Assessment Orders issued under Section 143(3) and Section 144C(13) of the Income Tax Act, 1961, following directions from the Dispute Resolution Panel.

Key Details of the ITAT Order

The tribunal’s decision addresses two primary categories of tax additions: Transfer Pricing and Corporate Income Tax. The deletions were based on distinct grounds for each category, reflecting the specific nature of the disputes raised by the assessing officer.

The Transfer Pricing additions were deleted in consideration of the Advance Pricing Agreement (APA) executed by the company on January 5, 2026. This agreement provides certainty regarding the pricing policies for international transactions, thereby neutralizing the additions made by the tax authorities. For the Corporate Income Tax additions, the ITAT ruled in favor of the company on the merits of the case, relying on precedents set by its own orders in earlier years concerning identical issues.

Procedural Status and Future Risks

While the ITAT order is final at the tribunal level, the administrative process is not yet complete. The Assessing Officer has yet to issue the "Order Giving Effect to ITAT Order," a mandatory procedural step required to formally adjust the tax records and reflect the deletion of demands. Until this order is issued, the legal closure of these assessment years remains pending at the departmental level.

LG Electronics India stated that there is no adverse impact on its financial or operational activities due to this decision. However, the company noted that the Income Tax Department retains the right to prefer an appeal against the Corporate Income Tax aspects of the ruling before the Hon’ble High Court. Such an appeal would introduce further litigation risk specifically related to the corporate tax issues, distinct from the transfer pricing matters which are now settled under the APA framework.

What the Numbers Show

The deletion of approximately INR 1,305 Crores in tax additions represents a significant reduction in contingent liabilities for LG Electronics India. By resolving these matters through the ITAT, the company avoids potential cash outflows associated with disputed tax demands. The reliance on the APA for transfer pricing issues suggests a strategic shift towards certainty-based tax compliance, reducing future volatility in this area. The continued risk of High Court appeals on corporate tax matters indicates that while the immediate financial threat is removed, legal exposure persists until the appellate process concludes.