CG Power Reports Strong Q1 FY27 Growth; Revenue Rises 16%, Order Book Surges 45% to Record ₹17,333 Crore

What Happened ?

key details

Business & Operational Highlights:

• Standalone revenue grew 16% YoY to ₹3,061 crore.
• PAT increased 27% YoY to ₹364 crore.
• EBITDA margin expanded by 140 basis points to 16.9%.
• ROCE stood at 23%.
• Order intake reached ₹4,692 crore.
• Order backlog increased 45% YoY to ₹17,333 crore.
• Highest-ever first-quarter sales, EBITDA and PBT recorded in recent years.

Industrial Systems:

The Industrial Systems business delivered steady revenue growth despite a one-time provision impacting margins.

• Revenue increased 6% YoY to ₹1,671 crore.
• Strong double-digit growth in the Motors business.
• PBIT stood at ₹148 crore.
• PBIT margin moderated to 8.8% due to a one-time provision of ₹20 crore in the Railways business.
• Order intake reached ₹1,586 crore.
• Order backlog stood at ₹2,899 crore.

Power Systems:

Power Systems remained the key growth driver during the quarter.

• Revenue increased 31% YoY to ₹1,402 crore.
• EBITDA rose 44% YoY to ₹338 crore.
• EBITDA margin improved to 24.1%.
• PBIT increased 44% YoY to ₹324 crore.
• PBIT margin expanded to 23.1%.
• Order intake reached ₹3,106 crore.
• Order backlog increased 59% YoY to ₹14,434 crore, providing strong multi-quarter revenue visibility. 

Strategic Developments:

CG Power continued strengthening its manufacturing capabilities during the quarter.

Key Initiatives

• Commissioned its S3 Unit-II Extra High Voltage (EHV) Switchgear Manufacturing Facility at Pimpalgaon Garudeshwar, Nashik.
• The new facility expands EHV circuit breaker manufacturing capacity by approximately 80%, increasing annual capacity by 7,200 units.
• The facility is equipped with advanced 500 kV and 350 kV high-voltage testing laboratories to support growing domestic and international demand for power transmission equipment.
• CG Semi Private Limited commenced commercial production at its outsourced semiconductor assembly and testing (OSAT) facility in Sanand, Gujarat, marking a key milestone in the company’s semiconductor business. 

Note

• The quarter reflects sustained execution across both Industrial Systems and Power Systems.
• While Industrial Systems margins were temporarily impacted by a one-time provision, the strong performance of the Power Systems business, combined with record order inflows and capacity expansion, continues to strengthen CG Power’s long-term growth outlook.

Risk Analysis

Summary:

• Although CG Power reported another strong quarter, future performance remains linked to project execution, input cost inflation, global trade dynamics, and continued investment in new businesses such as semiconductors.

Key Risks:

• Global trade realignments and currency volatility.
• Elevated raw material and input costs.
• Execution risk associated with large infrastructure projects.
• Continued investment in semiconductor operations may temporarily affect consolidated margins.
• Demand remains dependent on infrastructure and industrial capital expenditure.

Worst Case:

• Delays in project execution, weaker industrial investment, or prolonged cost inflation could moderate revenue growth and margin expansion despite the company’s strong order backlog.

Risk Level: Medium

Company Commentary

According to Amar Kaul, Group CEO & Managing Director:

• The company continues to deliver disciplined execution despite an uncertain external environment.
• Demand drivers remain diversified across grid modernization, renewable energy integration, rail modernization, and electronics manufacturing.
• CG Power will continue investing in manufacturing capacity as the medium-term growth opportunity remains stronger than near-term macroeconomic challenges.
• The company’s focus remains on building capabilities today to capitalize on future growth opportunities.