CG Power Q3 FY26 profit jumps 28%, Murugappa stake

Q3 FY26 results put earnings back in focus

CG Power and Industrial Solutions Limited reported strong Q3 FY26 numbers on January 28, 2026, drawing attention back to operating performance after several years of corporate restructuring. On a standalone basis, net profit rose 27.58% year-on-year to INR 311.65 crore, compared with INR 244.27 crore a year earlier. Standalone total income increased 23.20% year-on-year to INR 2,981.68 crore. On a consolidated basis, net profit grew 18.42% year-on-year to INR 284.83 crore. The earnings print matters because the stock’s re-rating in recent years has been closely tied to improved governance, balance sheet repair, and sharper execution.

Standalone versus consolidated: what the numbers show

The reported gap between standalone and consolidated profit is notable in Q3 FY26, with standalone profit higher than consolidated profit in the figures provided. Standalone performance captures the core listed entity’s profitability, while consolidated numbers reflect subsidiaries and group-level adjustments. The company’s disclosure pointed to growth in both profit measures, but the pace differed: standalone profit growth of 27.58% versus consolidated profit growth of 18.42%. Total income data was provided for standalone operations at INR 2,981.68 crore, rising 23.20% year-on-year. Taken together, the update reinforces that the company’s earnings trajectory remains a key part of the CG Power share analysis.

From fraud shock to penny-stock lows in 2020

CG Power’s recent narrative cannot be separated from the governance crisis that preceded the turnaround. The stock fell under INR 10 in 2020 after a reported INR 2,435 crore fraud and a broader debt and governance crisis. The shares hit an all-time low of INR 4.93 on 12 March 2020, when the stock was in lower circuit conditions on the BSE. The company was described as having no cash and facing multiple investigations and tax demands running into “thousand crores” when the new promoter group stepped in. These details form the backdrop for why subsequent ownership changes and capital allocation decisions were closely tracked by investors.

Murugappa Group entry: deal terms and timing

The decisive shift came in 2020 when Tube Investments of India (TII), part of the Murugappa Group, acquired control from the Avantha Group. Multiple references in the provided material describe an investment of INR 700 crore for a controlling stake, including mentions of a 56.61% stake and a 56.29% stake in different parts of the text. One regulatory-style description states Tube Investments would be issued 64.25 crore shares at INR 8.56 per share, aggregating INR 550 crore, alongside warrants of INR 150 crore that could lift the holding to 56.61% on conversion. The transaction is also described as culminating on 26 November 2020, after which Tube Investments became the promoter company and the board was reconstituted.

Ownership structure after the takeover

Ownership is described as becoming more institutionalised after the change in control, with governance improvements highlighted as a key driver of investor confidence. The text also states Tube Investments holds around 58% shareholding (also cited as 58.05%), with meaningful participation from foreign and domestic institutions.

Scale-up and financial markers cited through FY25

Alongside ownership change, the material cites operating metrics that investors have used to track the turnaround. Sales are stated at INR 9,909 crore in FY25. EBITDA is cited at INR 1,304.73 crore (also referenced as INR 1,305 crore), and net profit is stated at INR 973 crore for fiscal 2025. A separate FY25 datapoint in the text cites Q4 FY25 revenue of about INR 2,753 crore with PAT of about INR 274 crore, alongside an order book of INR 10,631 crore as of March 31, 2025, up 66% year-on-year. These numbers have been presented as evidence of a sharper business mix and improved execution.

Capacity expansion and capex lines mentioned

The text links the company’s post-takeover strategy to capacity expansion and new adjacencies. Transformer capacity at the Malanpur plant is described as expanding from 25,000 MVA to 35,000 MVA. A capex list in the material includes INR 712 crore for power transformer capacity expansion and INR 748 crore for a new switchgear plant that doubles capacity. The same list references a INR 3,000 crore QIP raised at INR 660 per share. These figures are presented as part of the company’s ongoing investment cycle, alongside its entry into semiconductor-related projects.

Semiconductor push: OSAT, Sanand, and the JV structure

CG Power’s expansion into semiconductors appears in the text in two related threads. One disclosure-style account states the company filed an application to set up an outsourced semiconductor assembly and test (OSAT) facility in India with an estimated investment of $191 million (INR 6,600 crore) spread over five years, and that it sought approvals from the Ministry of Electronics and Information Technology (MeitY) and subsidies for the project. Another part of the material describes a INR 7,600 crore OSAT facility in Sanand, Gujarat, through a subsidiary (CG Semi), with commercialisation targeted by 2026.

The JV shareholding for a Sanand facility is described as CG Power holding 92.3%, Renesas holding 6.8%, and Stars Micro Electronics holding 0.9%, with CG Power’s wholly owned subsidiary Axiro Semiconductors referenced as holding the 92.3% interest. The facility capacity is described as 15 million semiconductors per day. Separately, Axiro is described as one of India’s first ‘fabless’ semiconductor companies operating at scale, shipping millions of ICs monthly to global players such as Ericsson, Nokia, Hughes, and Siemens.

Market impact: valuation, price references, and investor positioning

The provided material contains multiple price references across different dates and contexts, underscoring how widely the stock’s narrative has been discussed. It notes the share fell to INR 4 to INR 5 levels in early 2020, and also mentions the stock “hit INR 280 in 3 years” by 2023 after being under INR 10 in 2020. Other lines describe the stock as trading around INR 640 to INR 660 in late December 2025, around INR 680 in another reference, and around INR 706 or even INR 824 in separate “today” statements, indicating the quotes are not anchored to a single timestamp. The same compilation flags “high valuations” with a stated P/E of about 95 to 100.

From an investor-impact standpoint, the market response described in the text is tied to three visible drivers: the post-2020 governance reset, improving operating metrics through FY25 and into FY26, and the move into semiconductors alongside core power equipment demand themes.

Why the story matters now

The Q3 FY26 earnings growth provides a fresh checkpoint on profitability, while the ownership structure clarifies who controls capital allocation and strategic direction. The Murugappa-led takeover is described as reshaping governance and investor confidence, with institutional ownership building alongside promoter control above 58%. At the same time, the semiconductor initiatives add a new capex and execution layer, including regulatory approvals, subsidies, JV funding structure, and timelines. The material also ties the company’s positioning to macro themes such as India’s infrastructure push and the country’s semiconductor self-sufficiency agenda, although the figures cited remain specific to CG Power’s announced projects.

Conclusion

CG Power’s January 28, 2026 update showed profit growth on both standalone and consolidated bases, adding to a turnaround narrative that began with the 2020 promoter change. Key investor watchpoints, based on the provided data, include execution on capacity expansion, clarity on OSAT investment and approvals, and how the new businesses scale alongside the core electrical equipment franchise.