Appliance maker LG Electronics India Ltd on Monday (January 5, 2026) said it has signed and concluded an Advance Pricing Agreement (APA) with the Central Board of Direct Taxes (CBDT).
In a regulatory filing, the company said it had originally filed the Advance Pricing Agreement application with Indian tax authorities on March 29, 2018, covering a nine-year period from April 1, 2014, to March 31, 2023. The agreement was concluded on January 5, 2026.
Following the signing of the Advance Pricing Agreement, LG Electronics India said contingent liabilities of ₹172.44 crore related to direct taxes will become nil. In addition, a contingency amount of ₹315.30 crore linked to royalty payments to its promoter, LG Electronics Inc., Korea, will also become nil.
The company said the Advance Pricing Agreement will result in a net tax expense of ₹17.71 crore, excluding applicable interest, which will be computed as per the payment date. It will also be required to pay a net amount of ₹3.86 crore to LG Electronics Inc. under secondary adjustment provisions, in compliance with applicable transfer pricing laws in India.
Second Quarter Results
LG Electronics India reported a 27.3% year-on-year decline in net profit to ₹389 crore for the quarter ended September 2025, compared with ₹536 crore a year ago. Revenue from operations rose 1% year-on-year to ₹6,174 crore, up from ₹6,113.8 crore, reflecting stable consumer demand across its product portfolio.
The electronics giant’s EBITDA fell 27.7% year-on-year to ₹547.5 crore from ₹757.4 crore, while the EBITDA margin contracted to 8.9% from 12.4% in the same period last year.
