CG Power and Industrial Solutions Ltd – Q1 FY26 Highlights

Company Overview CG Power (part of the Murugappa Group) is a leading electrical engineering company specializing in power and industrial systems, along with a growing semiconductor component business. Q1 FY26 Financials • Revenue from operations surged ~29% YoY to ₹2,878 crore. • Net Profit (Consolidated PAT) rose ~11–11.6% YoY to about ₹267–269 crore. • Profit Before Tax improved ~8–9% YoY to around ₹364 crore, with Total Income up ~29% to ₹2,906 crore. • Expenses rose significantly to ₹2,543 crore, driven by higher input and employee costs. • Segment-wise breakdown: o Power Systems: ₹1,070 crore revenue; PBT at ₹225 crore. o Industrial Systems: ₹1,692 crore revenue; PBT at ₹172 crore. o Semiconductors: ₹108 crore, but with a PBT loss of ₹9 crore. Order Book & Strategic Expansion • Q1 FY26 order intake stood at ₹5,138 crore—a 62% YoY increase. • Unexecuted order backlog surged 82% YoY to ₹13,072 crore. • The quarter’s financials included the performance of the newly acquired Radio Frequency component business (Axiro). • CG Power received CFIUS approval for this acquisition, enabling expansion into advanced RF technologies. Market Developments • The company secured regulatory clearance for acquisition of Renesas RF components business—boosting technology footprint. • CG Semi, its subsidiary, is launching a ₹7,600 crore OSAT (Outsourced Semiconductor Assembly and Test) facility in Gujarat, signaling strategic diversification toward semiconductors—driving recent stock optimism. Conclusion CG Power delivered a strong Q1 FY26 performance with robust revenue growth and profitability, backed by a healthy surge in order intake and backlog. The integration of semiconductor operations and investments in OSAT infrastructure mark its pivot toward higher-margin, technology-centric businesses. With expanding capabilities and a decently profitable legacy business.