Introduction
CG Power and Industrial Solutions Limited disclosed its financial results for the first quarter of FY27 (ended June 30, 2026) following its Board of Directors meeting on July 24, 2026. The report offers insights into the performance of its core operational verticals: Power Systems and Industrial Systems.
The quarter reflects sustained top-line expansion year-over-year, driven by industrial demand and continuous investments in power infrastructure. Beyond headline income figures, the Board’s decision to expand Extra High Voltage (EHV) Gas Insulated Switchgear (GIS) manufacturing capacity points toward the company’s operational strategies.
This review examines CG Power’s Q1 FY27 numbers, evaluating standalone and consolidated metrics, operational segment performance, expenditure dynamics, balance sheet asset distribution, and capital deployment initiatives.
Company Overview
CG Power and Industrial Solutions Limited, part of the Murugappa Group, operates in the electrical engineering and capital goods sector. The company manufactures products across power transmission, distribution, and industrial applications.
Core Business Segments
Power Systems: Focuses on high-voltage equipment, including transformers, extra-high-voltage (EHV) switchgears, circuit breakers, and sub-station automation solutions.
Industrial Systems: Produces electric motors (low, medium, and high voltage), drives, alternators, railway traction equipment, and industrial automation technology.
Semiconductors: Comprises nascent developmental initiatives, including assembly and testing ventures under its specialized subsidiaries.
The company maintains manufacturing units across India—notably in Nashik, Bhopal, and Goa—complemented by global subsidiaries in Sweden, Germany, the Netherlands, and Singapore.
Q1 FY27 Financial Snapshot
CG Power’s operational scale expanded YoY during Q1 FY27. On a consolidated basis, top-line performance was supported by steady traction in Power Systems, while standalone operations demonstrated controlled expenditure growth relative to revenue.
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| CG POWER Q1 FY27 REVENUE OVERVIEW |
| |
| CONSOLIDATED REVENUE |
| Q1 FY26: [₹2,878.05 Cr] |
| Q1 FY27: [=========================> ₹3,280.81 Cr (+13.99% YoY)] |
| |
| STANDALONE REVENUE |
| Q1 FY26: [₹2,643.49 Cr] |
| Q1 FY27: [======================> ₹3,061.37 Cr (+15.81% YoY)] |
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Standalone Financial Performance (in ₹ Crores)
| Financial Metric | Q1 FY27 (Unaudited) | Q4 FY26 (Audited) | Q1 FY26 (Unaudited) | YoY Growth (%) |
| Revenue from Operations | 3,061.37 | 3,128.50 | 2,643.49 | +15.81% |
| Other Income | 80.84 | 87.47 | 33.32 | +142.62% |
| Total Income | 3,142.21 | 3,215.97 | 2,676.81 | +17.39% |
| Cost of Materials Consumed | 2,217.64 | 2,142.80 | 1,794.77 | +23.56% |
| Employee Benefits Expense | 150.31 | 149.18 | 143.72 | +4.59% |
| Finance Costs | 2.47 | 2.61 | 1.37 | +80.29% |
| Depreciation & Amortisation | 28.49 | 23.43 | 22.73 | +25.34% |
| Other Expenses | 288.02 | 295.17 | 222.88 | +29.22% |
| Total Expenses | 2,655.45 | 2,669.32 | 2,293.61 | +15.78% |
| Profit Before Tax (PBT) | 486.76 | 546.65 | 383.20 | +27.02% |
| Tax Expense | 123.17 | 135.09 | 96.81 | +27.23% |
| Profit After Tax (PAT) | 363.59 | 411.56 | 286.39 | +26.96% |
Consolidated Financial Performance (in ₹ Crores)
| Financial Metric | Q1 FY27 (Unaudited) | Q4 FY26 (Audited) | Q1 FY26 (Unaudited) | YoY Growth (%) |
| Revenue from Operations | 3,280.81 | 3,441.76 | 2,878.05 | +13.99% |
| Other Income | 83.58 | 77.06 | 28.25 | +195.86% |
| Total Income | 3,364.39 | 3,518.82 | 2,906.30 | +15.76% |
| Cost of Materials Consumed | 2,304.96 | 2,281.86 | 1,923.59 | +19.83% |
| Employee Benefits Expense | 253.35 | 262.76 | 215.06 | +17.80% |
| Finance Costs | 3.51 | 3.77 | 2.19 | +60.27% |
| Depreciation & Amortisation | 54.47 | 49.37 | 43.50 | +25.22% |
| Other Expenses | 359.37 | 375.85 | 274.15 | +31.09% |
| Total Expenses | 2,941.51 | 3,028.41 | 2,542.52 | +15.69% |
| Profit Before Tax (PBT) | 422.88 | 490.41 | 363.78 | +16.25% |
| Tax Expense | 114.60 | 128.90 | 96.91 | +18.25% |
| PAT (Continuing Operations) | 308.28 | 361.51 | 266.87 | +15.52% |
| PAT Attributable to Owners | 313.01 | 365.49 | 269.23 | +16.26% |
Revenue Analysis
Consolidated revenue from operations for Q1 FY27 reached ₹3,280.81 crore, up 13.99% compared to ₹2,878.05 crore in Q1 FY26. On a quarter-on-quarter basis, revenue saw a moderate seasonal contraction from ₹3,441.76 crore recorded in Q4 FY26.
Standalone operational revenue rose 15.81% YoY to ₹3,061.37 crore from ₹2,643.49 crore in the corresponding quarter of the previous year.
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| STANDALONE VS CONSOLIDATED REVENUE |
| |
| Q1 FY27 Standalone: [===================] ₹3,061.37 Cr |
| Q1 FY27 Consolidated: [=====================] ₹3,280.81 Cr |
| |
| Q1 FY26 Standalone: [================] ₹2,643.49 Cr |
| Q1 FY26 Consolidated: [==================] ₹2,878.05 Cr |
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Key Demand Drivers
Power Grid Upgrades: Utility and private industrial transformer and switchgear orders provided top-line support.
Industrial Activity: Capital investment across heavy industries sustained order execution for industrial motors and variable frequency drives.
Other Income Increment: Other income increased significantly on both standalone (₹80.84 crore vs ₹33.32 crore in Q1 FY26) and consolidated bases (₹83.58 crore vs ₹28.25 crore in Q1 FY26), primarily reflecting returns generated on unutilized QIP funds held in fixed deposits and mutual fund investments.
Profitability Analysis
Consolidated Profit After Tax (PAT) from continuing operations for Q1 FY27 stood at ₹308.28 crore, reflecting a 15.52% expansion over ₹266.87 crore in Q1 FY26. Net profit attributable to the owners of the company reached ₹313.01 crore.
Standalone PAT increased to ₹363.59 crore from ₹286.39 crore in Q1 FY26, yielding a YoY growth of 26.96%.
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| CONSOLIDATED PAT TRAJECTORY |
| |
| Q1 FY26: [₹266.87 Cr] |
| Q4 FY26: [₹361.51 Cr] |
| Q1 FY27: [===============> ₹308.28 Cr (+15.52% YoY)] |
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Expense Breakdown
Raw Material Costs: Consolidated cost of materials consumed increased to ₹2,304.96 crore in Q1 FY27 compared to ₹1,923.59 crore in Q1 FY26. Standalone raw material consumption stood at ₹2,217.64 crore.
Employee Costs: Consolidated employee benefits expense stood at ₹253.35 crore, up from ₹215.06 crore in Q1 FY26. Standalone personnel costs rose modestly from ₹143.72 crore to ₹150.31 crore.
Depreciation & Finance Costs: Consolidated depreciation rose to ₹54.47 crore (from ₹43.50 crore in Q1 FY26) due to ongoing capacity expansions. Finance costs remained low at ₹3.51 crore on a consolidated level and ₹2.47 crore on a standalone basis, highlighting the company’s low interest-bearing debt burden.
Segment-Wise Performance
CG Power classifies its primary business operations into Power Systems and Industrial Systems, with additional tracking for Semiconductor initiatives on a consolidated basis.
Segment Revenue Breakdown (in ₹ Crores)
| Segment Name | Q1 FY27 (Consolidated) | Q4 FY26 (Consolidated) | Q1 FY26 (Consolidated) | YoY Change (%) |
| Power Systems | 1,398.24 | 1,487.26 | 1,070.14 | +30.66% |
| Industrial Systems | 1,789.54 | 1,791.33 | 1,691.54 | +5.79% |
| Semiconductors | 94.03 | 155.60 | 108.49 | -13.33% |
| Others | 10.17 | 9.28 | 8.47 | +20.07% |
| Total Segment Revenue | 3,291.98 | 3,443.47 | 2,878.64 | +14.36% |
| Less: Inter-Segment Revenue | (11.17) | (1.71) | (0.59) | — |
| Net Operational Revenue | 3,280.81 | 3,441.76 | 2,878.05 | +13.99% |
Segment Profitability (PBT & Finance Costs before Unallocable) (in ₹ Crores)
| Segment Name | Q1 FY27 (Consolidated) | Q4 FY26 (Consolidated) | Q1 FY26 (Consolidated) | Standalone Q1 FY27 |
| Power Systems | 324.09 | 354.27 | 225.31 | 324.40 |
| Industrial Systems | 136.28 | 160.37 | 172.12 | 147.69 |
| Semiconductors | (49.99) | (37.42) | (8.70) | N/A |
| Others | 2.99 | 2.18 | 0.66 | N/A |
| Total Segment Profit | 413.37 | 479.40 | 389.39 | 472.09 |
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| SEGMENT PROFITABILITY COMPARISON |
| |
| POWER SYSTEMS (Consolidated PBT) |
| Q1 FY26: [₹225.31 Cr] |
| Q1 FY27: [============================> ₹324.09 Cr (+43.84% YoY)] |
| |
| INDUSTRIAL SYSTEMS (Consolidated PBT) |
| Q1 FY26: [₹172.12 Cr] |
| Q1 FY27: [=============> ₹136.28 Cr (-20.82% YoY)] |
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Segment Analysis
Power Systems: Power Systems recorded a 30.66% YoY increase in consolidated revenue to ₹1,398.24 crore. Segment profit rose 43.84% YoY to ₹324.09 crore, reflecting improved scale and operational efficiencies in the transformer and switchgear divisions.
Industrial Systems: Revenue grew 5.79% YoY to ₹1,789.54 crore. However, segment profit contracted to ₹136.28 crore from ₹172.12 crore in Q1 FY26, impacted by input cost movements and product mix shifts.
Semiconductors: Recorded a segment loss of ₹49.99 crore for the quarter on revenue of ₹94.03 crore, reflecting ongoing setup and operational development expenses across corporate entities like Axiro Semiconductor.
Capacity Expansion: Nashik EHV GIS Project
Along with its financial disclosures, the Board of Directors approved a capital expenditure plan to expand its manufacturing footprint.
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| NASHIK GIS EXPANSION AT A GLANCE |
| |
| Project Location: Vilholi, Nashik (Brownfield) |
| Investment Amount: ₹35.17 Crores (net of taxes) |
| Current Capacity: 228 Equivalent Units |
| Target Capacity: 600 Equivalent Units (Peak FY30) |
| Timeline: 4 to 6 months |
| Funding Source: Internal Accruals / Equity |
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Expansion Rationale & Capital Allocation Details
Capacity Constraints: The existing Extra High Voltage Gas Insulated Switchgear (EHV GIS) facility operates at 91% capacity utilization (FY26 baseline). Physical constraints across shop floors, assembly bays, testing facilities, and storage limit additional equipment integration.
Projected Scope: The approved project adds capacity in Vilholi, Nashik, raising existing output from 228 Equivalent Units to a projected peak capacity of 600 Equivalent Units by FY30.
Project Cost & Timeline: Estimated project outlay is ₹35.17 crore (net of taxes), funded via internal accruals/equity. Execution is slated for completion within 4 to 6 months.
Greenfield Transition: Approximately 87% of the brownfield assets established during this interim project are expected to transfer to a larger planned Greenfield facility once commissioned.
Balance Sheet & Capital Utilization
Asset distribution across operational segments reflects capital allocation toward power systems expansion and technology developments.
Segment Assets & Liabilities (in ₹ Crores as of June 30, 2026)
| Segment / Asset Class | Consolidated Assets | Consolidated Liabilities | Standalone Assets | Standalone Liabilities |
| Power Systems | 3,677.36 | 2,509.19 | 3,663.92 | 2,517.36 |
| Industrial Systems | 3,583.16 | 1,657.50 | 2,502.97 | 1,429.18 |
| Semiconductors | 1,466.24 | 176.90 | N/A | N/A |
| Others / Discontinued | 39.42 | 10.89 | N/A | N/A |
| Unallocable Assets/Liabilities | 4,735.49 | 634.76 | 6,696.56 | 324.75 |
| Total Balance Sheet Scale | 13,501.67 | 4,989.24 | 12,863.45 | 4,271.29 |
QIP Funds Utilization Update
During the previous fiscal year, CG Power raised ₹3,000.00 crore through a Qualified Institutions Placement (QIP).
Utilized Amount: As of June 30, 2026, ₹502.65 crore has been deployed toward objectives defined in the placement document.
Unutilized Balance: The remaining balance is temporarily deployed in fixed deposits, mutual funds, and monitoring accounts, generating interest and dividend income recorded under ‘Other Income’.
Shareholding Pattern
The company’s equity base stands at ₹315.00 crore, comprising 1,575,000,000 equity shares of face value ₹2 each.
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| EQUITY CAPITALIZATION DATA |
| |
| Paid-Up Share Capital: ₹315.00 Crores |
| Face Value Per Share: ₹2.00 |
| Total Issued Equity: 157.50 Crore Shares |
| Consolidated Reserves: ₹7,655.49 Crores (as of March 31, 2026)|
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SWOT Analysis
| Strategic Dimension | Observations |
| Strengths | • Power Systems revenue up 30.66% YoY. • Strong liquidity with unutilized QIP capital. • Low interest-bearing debt profile. |
| Weaknesses | • Margin compression in Industrial Systems segment. • Gestation losses in semiconductor ventures (₹49.99 Cr loss). |
| Opportunities | • EHV GIS expansion targeting 600 Equivalent Units by FY30. • Domestic grid modernisation and infrastructure capital spending. |
| Threats | • Raw material volatility affecting input costs. • Execution delays during transition from brownfield to greenfield facilities. |
Frequently Asked Questions
1. What was CG Power’s consolidated revenue in Q1 FY27?
Consolidated revenue from operations for Q1 FY27 reached ₹3,280.81 crore, representing a 13.99% increase YoY.
2. What was CG Power’s standalone net profit for Q1 FY27?
CG Power recorded a standalone Profit After Tax (PAT) of ₹363.59 crore in Q1 FY27, up 26.96% YoY.
3. What is the newly approved capex plan for Nashik?
The Board approved a brownfield project cost of ₹35.17 crore (net of taxes) to double production capacity for Extra High Voltage Gas Insulated Switchgear at Vilholi, Nashik.
4. What was the performance of the Power Systems segment?
Power Systems segment revenue grew 30.66% YoY to ₹1,398.24 crore, with segment profit increasing 43.84% YoY to ₹324.09 crore.
5. How much QIP capital has CG Power utilized so far?
Out of the ₹3,000.00 crore raised via QIP, CG Power deployed ₹502.65 crore as of June 30, 2026[cite: 1].
6. What was the financial result for the semiconductor business segment?
The Semiconductor segment generated revenue of ₹94.03 crore with a segment loss of ₹49.99 crore in Q1 FY27[cite: 1].
7. What was CG Power’s basic Earnings Per Share (EPS) in Q1 FY27?
Consolidated basic EPS from continuing operations stood at ₹1.99 per share[cite: 1], while standalone basic EPS was ₹2.31 per share[cite: 1].
8. What is the target timeline for the GIS capacity expansion project?
The brownfield expansion project at Nashik is slated for completion within 4 to 6 months[cite: 1].
9. Who audited the Q1 FY27 results of CG Power?
M/s. SRBC & CO LLP, Chartered Accountants, performed the statutory limited review report[cite: 1].
10. Does CG Power have significant direct tax litigation exposures?
The company is involved in ongoing direct tax litigations pending before various forums, but management anticipates a favorable outcome based on legal opinions[cite: 1].
Conclusion
CG Power and Industrial Solutions Limited’s Q1 FY27 results show revenue growth supported by demand in the Power Systems segment[cite: 1]. The approved ₹35.17 crore capacity expansion at Vilholi, Nashik, addresses capacity constraints in the Extra High Voltage GIS business[cite: 1]. Managing margin fluctuations in Industrial Systems and scaling its semiconductor division remain key focus areas as the company deploys its unutilized QIP capital[cite: 1].
