CG Power and Industrial Solutions Reports Strong Q1 FY27 Performance: Consolidated Net Profit Up 15.5% YoY to ₹308.28 Crore; Order Backlog Surges 45% to ₹18,965 Crore

Engineering and industrial major CG Power and Industrial Solutions Limited (BSE: 500093, NSE: CGPOWER) announced its financial results for the first quarter ended June 30, 2026 (Q1 FY27). Supported by stellar execution in its Power Systems division and robust demand, the company achieved its highest-ever Q1 operational revenue and profits in recent history.

The company's consolidated order backlog expanded by 45% YoY to ₹18,965 crore, offering multi-quarter revenue visibility across key operating divisions.

Consolidated Financial Highlights: Q1 FY27 vs Q1 FY26

Revenue from Operations: Consolidated revenue for Q1 FY27 reached ₹3,280.81 crore, marking a 14.00% YoY growth compared to ₹2,878.05 crore in Q1 FY26. On a sequential basis, revenue was lower by 4.68% compared to ₹3,441.76 crore achieved in Q4 FY26.

Total Income: Climbed 15.76% YoY to ₹3,364.39 crore, up from ₹2,906.30 crore in Q1 FY26, boosted by a significant increase in other income to ₹83.58 crore (versus ₹28.25 crore in Q1 FY26).

Profit Before Tax (PBT): Rose 16.25% YoY to ₹422.88 crore in Q1 FY27, compared to ₹363.78 crore in Q1 FY26. PBT margin expanded by 30 bps to 12.9%.

Profit After Tax (PAT): Consolidated net profit surged 15.52% YoY to ₹308.28 crore, up from ₹266.87 crore in Q1 FY26. Sequentially, PAT was down 15.18% from ₹363.46 crore in Q4 FY26.

Profit Attributable to Owners: Stood at ₹313.01 crore (versus ₹269.23 crore in Q1 FY26), while Non-Controlling Interests accounted for a loss of ₹4.73 crore.

Earnings Per Share (EPS): Basic and diluted EPS for continuing operations came in at ₹1.99 per share (face value ₹2/- each), up from ₹1.76 in Q1 FY26.

Total Comprehensive Income: Stood at ₹299.55 crore after reflecting an OCI net loss of ₹8.73 crore (primarily driven by foreign currency translation differences).

Segment-Wise Performance Analysis

1. Power Systems

Driven by disciplined execution and operational leverage, the Power Systems segment delivered strong top-line growth and substantial margin expansion:

Segment Revenue: Soared 30.66% YoY to ₹1,398.24 crore, compared to ₹1,070.14 crore in Q1 FY26.

Segment Results (PBIT): Jumped 43.84% YoY to ₹324.09 crore, up from ₹225.31 crore in Q1 FY26. PBIT margin expanded significantly by 209 bps to 23.18%.

Order Intake & Backlog: Order intake for the quarter stood at ₹3,106 crore, taking the segment unexecuted order backlog to ₹14,434 crore (up 59% YoY).

2. Industrial Systems

Segment Revenue: Grew 5.79% YoY to ₹1,789.54 crore, up from ₹1,691.54 crore in Q1 FY26, supported by strong double-digit growth in the Motors business.

Segment Results (PBIT): Came in at ₹136.28 crore (PBIT margin of 7.62%), down 20.82% YoY from ₹172.12 crore in Q1 FY26. The margin contraction was primarily attributed to a one-off provision of ₹20 crore in the Railways business.

Order Intake & Backlog: Order intake was ₹1,586 crore, with an unexecuted order backlog of ₹2,899 crore as of June 30, 2026.

3. Semiconductors

Segment Revenue: Recorded at ₹94.03 crore in Q1 FY27, compared to ₹108.49 crore in Q1 FY26 and ₹155.60 crore in Q4 FY26.

Segment Results: Reported a segment loss of -₹49.99 crore (versus a loss of -₹8.70 crore in Q1 FY26), reflecting ongoing investments in talent acquisition, capability development, and scaling of semiconductor operations (total segment impact of ₹43 crore / 132 bps on consolidated margins).

4. Others & Inter-Segment Reconciliations

Other Revenue: Stood at ₹10.17 crore, delivering a segment result of ₹2.99 crore.

Inter-Segment Revenue: Eliminations totaled ₹11.17 crore.

Cost Structure Overview

Consolidated total expenses for Q1 FY27 rose 15.69% YoY to ₹2,941.51 crore (versus ₹2,542.52 crore in Q1 FY26):

Cost of Materials Consumed: Increased 19.83% YoY to ₹2,304.96 crore (compared to ₹1,923.59 crore in Q1 FY26).

Changes in Inventories: Absorption stood at -₹163.95 crore (versus -₹20.16 crore in Q1 FY26).

Employee Benefits Expense: Rose 17.80% YoY to ₹253.35 crore (versus ₹215.06 crore in Q1 FY26).

Depreciation & Amortisation: Amounted to ₹54.47 crore (up from ₹43.50 crore in Q1 FY26).

Finance Costs: Stood at ₹3.51 crore.

Other Expenses: Totaled ₹359.37 crore, up 31.09% YoY from ₹274.15 crore in Q1 FY26.

Tax Provision: Effective tax rate remained stable with total tax expense at ₹114.60 crore (comprising ₹124.35 crore current tax and a deferred tax credit of ₹9.75 crore).

Standalone Performance Snapshot

On a standalone basis, CG Power recorded strong operational momentum:

Sales: Reached ₹3,061 crore, up 16% YoY compared to ₹2,643 crore in Q1 FY26.

EBITDA: Climbed 27% YoY to ₹518 crore (EBITDA margin of 16.9%, up 150 bps YoY).

Profit Before Tax (PBT): Increased 27% YoY to ₹487 crore (PBT margin of 15.9%).

Profit After Tax (PAT): Reached ₹364 crore (up 27% YoY, representing 11.9% of sales).

ROCE: Annualized Return on Capital Employed for the standalone entity stood at 23% (20% on a consolidated basis).

Order Intake & Backlog: Standalone order intake stood at ₹4,692 crore, driving the unexecuted order backlog to ₹17,333 crore (up 45% YoY).

Consolidated Assets & Liabilities

As of June 30, 2026, total consolidated assets expanded to ₹13,501.67 crore, up from ₹8,122.32 crore in Q1 FY26 and ₹12,667.61 crore as of March 31, 2026.

Power Systems Assets: ₹3,677.36 crore (Liabilities: ₹2,509.19 crore)

Industrial Systems Assets: ₹3,583.16 crore (Liabilities: ₹1,657.50 crore)

Semiconductors Assets: ₹1,466.24 crore (Liabilities: ₹176.90 crore)

Unallocable Assets: ₹4,735.49 crore (Liabilities: ₹634.76 crore)

Total Segment Liabilities: Stood at ₹4,989.24 crore, while paid-up equity share capital was ₹315.00 crore (face value ₹2/- per share).

"This quarter continues to reflect steady, disciplined execution in an uncertain external environment. While global trade realignments, currency volatility, and elevated input costs remain part of the landscape, we continue adapting effectively. Our demand drivers remain intact and diversified, spanning grid modernisation, renewable integration, rail modernisation, and electronics manufacturing in India, further supported by an improvement in manufacturing activity and private capex. We will stay the course on capacity investment, as we believe the medium-term opportunity is stronger than near-term headwinds. Our priority remains consistent: building capability today so we continue to capitalize on ongoing and future opportunities." - Amar Kaul, Group CEO and Managing Director.

Shares of CG Power and Industrial Solutions Limited was last trading in BSE at Rs. 884.05 as compared to the previous close of Rs. 912.90. The total number of shares traded during the day was 925361 in over 14497 trades.

The stock hit an intraday high of Rs. 915.25 and intraday low of 881.00. The net turnover during the day was Rs. 828814382.00.

Source : Equity Bulls

Keywords

CGPowerandIndustrialSolutions INE067A01029 Q1FY27 Q1FY2027 ResultUpdate