CG Power FY26: revenue +21%, order book ₹13,568 cr

CG Power & Industrial Solutions Ltd. (NSE: CGPOWER, BSE: 500093) has, as of January 2026, moved from a turnaround narrative to a high-growth industrial story under the Murugappa Group. The shift is being tracked closely because it combines two threads that rarely sit together at scale in India: heavy electrical equipment leadership and a direct entry into the semiconductor value chain. In mid-term FY26 results, the company reported consolidated revenue of ₹2,923 crore, up 21.1% year-on-year (YoY), while net profit rose 29.5% YoY to ₹284.4 crore. Management commentary and analyst notes in the provided information repeatedly point to capital efficiency, improving mix, and higher export exposure as key drivers.

From rescue to growth platform

The turnaround is tied to actions initiated in 2020-21, when Tube Investments of India led a rescue and operational reset. Since then, CG Power has aligned capacity expansion and product focus to India’s electrification and grid-modernisation cycle across motors, transformers and power equipment. The provided material notes profitability restored by FY2024, deleveraging underway, and strong order inflows supporting a multi-year growth plan. That plan is described as a combination of capacity builds, product diversification and tech partnerships. By FY2024, the company is described as moving from turnaround to growth, supported by stronger orders in transformers, motors and switchgear.

FY26 mid-term results: growth and margin mix

The FY26 mid-term snapshot cited in the input highlights a step-up in scale and profitability. Consolidated revenue reached ₹2,923 crore (up 21.1% YoY) and net profit rose to ₹284.4 crore (up 29.5% YoY). The improvement is attributed in the text to a focus on high-margin export orders, alongside mix and cost control themes repeated elsewhere. Broker aggregates referenced in the material (mid-2025) model a high-teens revenue CAGR for FY2026 to FY2027 and EBITDA margins in the low-to-mid teens. Another stated broker view expects ROCE to remain above 25%, supported by mix premiumisation and cost control.

Order book jumps to a record level

One of the strongest datapoints in the input is the unexecuted order book at a record ₹13,568 crore, up 73% YoY, described as providing revenue visibility for the next three years. Separately, a Q3 FY25 snapshot (as of December 31, 2024) notes an expanding order backlog of ₹2,968 crore (up 50% YoY) and order intake of ₹1,877 crore (up 37% YoY). The same Q3 FY25 extract breaks out segment momentum with industrial systems revenue at ₹1,591 crore (up 19.9% YoY) and power systems revenue at ₹920 crore (up 42.4% YoY). Across these periods, the common thread in the provided content is sustained utility and industrial demand, plus incremental export wins.

Power Systems: export order and capacity roadmap

In Power Systems (transformers and switchgears), CG is positioned as a top-tier player in India’s UHV and EHV markets, with Siemens India, ABB India, GE Vernova T&D, and Hitachi Energy listed as direct rivals. A key export datapoint is a ₹900 crore order for US data centers, framed as evidence of a move toward higher-margin export markets. Capacity expansion is described as a strategic advantage, with targets including 40,000 MVA at Malanpur by 2025 and an additional 45,000 MVA at a new greenfield site by FY28. Another extract notes commissioning a new 45,000 MVA transformer plant in Bhopal, and expanding an existing facility from 25,000 MVA to 40,000 MVA, alongside scaling distribution transformer capacity in Gwalior.

Industrial Systems: motors, efficiency upgrades, and product refresh

Industrial Systems is positioned around motors, drives and related industrial equipment, with product refresh efforts spanning IE3 and IE4 motors, smart switchgear, dry or cast-resin transformers, renewable evacuation transformers, and STATCOM-ready designs. The demand drivers mentioned include energy efficiency focus, renewable integration needs, and industrial capex across steel, cement and data centres. The company’s customer list in the input includes utilities, EPC contractors, large industrials, renewable developers, rail and metro, and international distributors. The text also flags selective EPC bidding and margin protection via selective bidding as stated priorities.

Semiconductor adjacency: OSAT/ATMP in Sanand

The most material strategic change described is the move into semiconductor assembly and test. Through a joint venture with Renesas (Japan) and Stars Microelectronics (Thailand), CG is building an OSAT facility in Sanand, Gujarat. The facility is stated to target 15 million chips per day by late 2026 or 2027. Capex guidance appears in two forms within the input: phased capex of about USD 800-900 million through FY2028, and a ₹7,600 crore multi-year investment mentioned alongside the same partners and location. The stated rationale is diversification into electronics manufacturing revenue streams, with pilot output targeted from late FY2026 and a phased ramp through FY2028.

Automation and execution focus on the shopfloor

The input highlights Industry 4.0 upgrades such as IoT sensor integration, predictive analytics, and cloud asset platforms that can be bundled into outcome-based contracts, aligned with RDSS and smart distribution programs. It also mentions manufacturing automation in coil winding, core stacking and motor assembly, using vision systems and robotics, with a targeted 10-15% shorter cycle time. The narrative links these initiatives to cycle time reduction, scrap reduction, and improved execution, which matter when order books are elevated and delivery performance can influence repeat utility and industrial business.

Market standing, orders, and corporate actions mentioned

CG Power is described as the second-largest heavy electrical equipment manufacturer in India by market capitalisation. The text also notes a contract award of INR 6,410 million (₹641 crore) from Power Grid Corporation of India for a 765/400 kV transformer package, described as the company’s largest single order, with supply over 18 to 36 months. Another datapoint notes a filed follow-on equity offering with a minimum price of ₹679.08 per share under Regulation S with subsequent direct listing. A separate “Last Update 11 Sep 25” section states the consensus analyst price target rose slightly to ₹750.29, alongside a slight drop in future P/E.

Key data table

Market context: grid capex, peak demand, and installed base

The demand environment referenced in the input is anchored in India’s grid buildout and electrification. The text notes India crossing 250 GW peak in 2024, and projected transmission capex above ₹3 lakh crore through FY2028. A separate section states installed capacity reached 475 GW in FY25, with grid expansion of over 10,000 circuit km and 71,000 MVA added last year. These datapoints are used to frame why transformer and switchgear capacity decisions matter, especially when combined with data centre load growth and renewable evacuation needs.

What investors are watching next

Based on the provided material, investors are likely to track three execution threads: capacity ramp in transformers and motors, export scaling (with a stated goal to lift export mix to the mid-teens percent of revenue by FY2027 from low-teens in FY2024), and milestones in the Sanand OSAT/ATMP ramp with pilot output targeted from late FY2026. The same material also flags risks including margin pressures, transition costs in the semiconductor business, and execution challenges in building overseas distribution and after-sales capabilities.

Conclusion

CG Power’s FY26 mid-term numbers and record backlog underline a strong operating cycle in core electrification equipment, while the OSAT/ATMP venture introduces a new, execution-heavy growth leg. The next confirmed checkpoints in the narrative are capacity additions through FY2025 to FY2028 and the phased semiconductor ramp beginning with pilot output targeted from late FY2026.