LG Electronics India Limited has issued a postal ballot notice seeking member approval for key corporate decisions through remote e-voting. The notice, dated February 11, 2026, outlines two ordinary resolutions requiring shareholder approval.

Director Re-appointment Proposal

The company seeks member approval for re-appointing Mr. Dongmyung Seo (DIN: 09481866) as Whole Time Director (designated as Executive Director) for a four-year term effective January 27, 2026. The Board of Directors approved his re-appointment on January 16, 2026, based on the Nomination and Remuneration Committee's recommendation.

The proposed remuneration package includes salary, allowances, and perquisites not exceeding ₹3,50,00,000 per annum, excluding tax components borne by the company. In the previous year 2025, the company paid him ₹2,95,63,612 excluding tax components. Additional benefits include leased accommodation, medical expenses, telephone facilities, chauffeur-driven car, and club membership for business purposes.

Material Related Party Transactions

The second resolution seeks approval for material related party transactions between LG Electronics India Limited and its promoter LG Electronics Inc. for an aggregate value up to ₹72,500 million during FY 2026-27.

The transactions represent 29.75% of the company's annual turnover for FY 2024-25, which was ₹243,667 million. Historical transaction values with LG Electronics Inc. were ₹38,027.09 million in FY 2024-25 and ₹28,953.10 million from April to December 2026.

Voting Schedule and Process

The company has engaged National Securities Depository Limited (NSDL) to provide remote e-voting facilities to members. The voting schedule is structured as follows:

The postal ballot notice has been sent electronically to members whose email addresses are registered with the company, registrar, or depositories as of the cut-off date. Mr. Neeraj Arora, Practising Company Secretary, has been appointed as the scrutinizer for the postal ballot process.

Regulatory Compliance

The Audit Committee has reviewed and approved the proposed related party transactions, confirming they are conducted at arm's length basis and in the ordinary course of business. The committee verified that transactions are not prejudicial to public shareholders' interests and terms are favorable compared to similar transactions with unrelated parties.

The company has provided detailed disclosures in accordance with SEBI circular requirements, including minimum information standards for related party transaction approvals. All material documents are available for electronic inspection during the voting period.

Source: None/Company/INE324D01010/2b52a7a7-6b78-43c5-914b-e3d9e75b8b79.pdf

LG Electronics India Limited faced a challenging third quarter of fiscal year 2026, reporting revenue decline and margin compression amid subdued consumer demand and input cost pressures. The company held its earnings conference call on February 12, 2026, to discuss the quarterly performance and strategic outlook.

Financial Performance Overview

The company's financial results for Q3 FY26 reflected the challenging operating environment. Revenue from operations declined year-over-year, while profitability metrics came under pressure from multiple headwinds.

The margin compression was attributed to subdued sales impacting operating leverage, increased input costs including copper and aluminium, currency-related headwinds, and the impact of new Labour Code regulations. Working capital increased to ₹11.3 billion as of December 31, 2025, compared to ₹8.1 billion in the previous year, primarily due to incremental inventory in compressor-led products for the upcoming summer season.

Market Share Performance

Despite revenue challenges, LG Electronics India maintained its leadership positions across key product categories. The company demonstrated resilience in market share performance on a year-to-date basis through December 2025.

The company's premium segment performance remained particularly strong, with OLED TV market share reaching 62.4% and side-by-side refrigerator share at 43.3%, reinforcing its leadership in high-value categories.

Segment-wise Business Performance

Home Appliance & Air Solution Segment

The Home Appliance & Air Solution segment generated revenue of ₹27.88 billion compared to ₹30.91 billion in the previous year, with EBIT margin of 4%. The segment faced challenges from post-festival demand softness in compressor-led products, though premium launches including French door refrigerators and AI-enabled washing machines supported the portfolio.

Home Entertainment Segment

The Home Entertainment segment showed resilience with revenue of ₹13.26 billion, up 1.7% year-over-year from ₹13.05 billion in Q3 FY25. The segment benefited from festive season demand and GST rate cuts, particularly in televisions, though margins were impacted by post-festival demand slowdown and input cost pressures.

Strategic Initiatives and Government Incentives

LG Electronics India secured significant government support for its expansion plans. The company received an eligibility certificate from the Government of Maharashtra for incentives worth ₹705 crores under the Electronics Policy 2016.

The company also entered into a nine-year Advance Pricing Agreement with the Central Board of Direct Taxes, covering the period from FY14 to FY23, which eliminates contingent liabilities of ₹4.87 billion related to direct taxes and royalty payments.

Manufacturing Expansion and Export Strategy

LG Electronics India is advancing its manufacturing capabilities with a ₹5,000 crores investment in its third manufacturing facility at Sri City, Andhra Pradesh. The project will be funded entirely through internal accruals and deployed in phases over 4-5 years. Production of room air conditioners is expected to commence in the last quarter of calendar year 2026.

The company plans to double its export value in FY27, leveraging India-US tariff rationalization to 18% and the India-EU Free Trade Agreement. Current exports represent 6-7% of total revenue, reaching 54 neighboring countries. The export strategy focuses on premium products manufactured in India, including side-by-side refrigerators and large capacity refrigerators.

Outlook and Strategic Direction

Management expressed confidence in Q4 FY26 performance, expecting double-digit revenue growth and improved EBITDA margins compared to the previous year's fourth quarter. The company targets early single-digit revenue growth for FY26 with double-digit EBITDA margins.

For FY27, LG Electronics India guides for double-digit revenue growth and early-teen digit margins, supported by premium product launches, diversified portfolio expansion, and the new LG Essential series targeting tier 2 and tier 3 markets. The company continues to focus on localization, which increased from 45.1% in FY22 to 54.6% in Q3 FY26, while expanding into new categories such as chest freezers and strengthening B2B opportunities in HVAC and information display solutions.