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CG Power & Industrial Solutions reported a mixed set of performance in Q1FY27

ICICIdirect Research 27 Jul 2026 DISCLAIMER

News: CG Power & Industrial Solutions reported a mixed set of performance in Q1FY27, with revenue increasing 14.0% YoY to ₹3,281 crore, driven by robust growth in the Power Systems segment. EBITDA grew 4.2% YoY to ₹397 crore, while EBITDA margin contracted 113 bps YoY to 12.1%. PAT increased 15.5% YoY to ₹308 crore, with PAT margin improving marginally to 9.4%. Segment-wise, Power Systems revenue increased 30.7% YoY to ₹1,398 crore, with EBIT margin expanding to 23.18% (vs. 21.05% in Q1FY26), while Industrial Systems revenue grew 5.8% YoY to ₹1,790 crore, although EBIT margin declined to 7.6% (vs. 10.2% in Q1FY26). The Semiconductor business reported ₹94 crore of revenue and an EBIT loss of ₹50 crore (vs. ₹9 crore loss in Q1FY26), reflecting continued investments and the ramp-up of semiconductor operations.

View: The Power Systems business is expected to remain the key growth driver, supported by a record order book of ₹18,965 crore (+45% YoY) and order inflow of ₹5,211 crore in Q1FY27, providing strong multi-quarter revenue visibility. Management indicated that the bid pipeline remains robust with no signs of demand moderation, while demand continues to be driven by transmission & distribution, grid modernisation, data centres, renewables and exports. The company is also accelerating capacity expansion, with the new transformer facility expected to add 45,000 MVA capacity in phases and the recently commissioned EHV switchgear plant expanding circuit breaker capacity by 80%. However, near-term profitability may remain impacted by the ₹50 crore semiconductor EBIT loss and weaker Industrial Systems margins due to one-off railway provisions, although these pressures are expected to moderate as semiconductor operations ramp up and railway execution normalises. 

Impact: Neutral

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