CG Power Q4 FY26 PAT jumps 32% to ₹362 crore

CG Power and Industrial Solutions reported a strong March-quarter performance, with consolidated profit and revenue rising sharply year-on-year on the back of steady demand and higher order inflows. For Q4 FY26, the company’s consolidated profit after tax (PAT) increased 32% year-on-year to ₹362 crore, while revenue from operations rose 25.03% to ₹3,441.76 crore.

The company said momentum across its core businesses supported growth in revenue and order intake. At the same time, it flagged that ongoing investments in its semiconductor vertical continued to weigh on margins, partly offsetting gains from the standalone business.

Q4 FY26 financial snapshot

Profit before tax (PBT) rose 27.83% to ₹490.41 crore in Q4 FY26 from ₹383.64 crore in the year-ago period. Operating performance also improved, with EBITDA increasing 30% year-on-year to ₹544 crore. EBITDA margin expanded to 15.8% from 15.2% in Q4 FY25.

Alongside growth in earnings, the company also reported a high annualised return on capital employed (ROCE) of 24% for the quarter. Management commentary indicated that margin improvement in the standalone business was partly offset by investments into the semiconductor business, particularly around building talent and capabilities.

Order inflows and backlog strengthen execution visibility

CG Power reported a sharp rise in orders during the quarter. Order intake stood at ₹5,335 crore in Q4 FY26, up 39% year-on-year. The unexecuted order book as of 31 March 2026 increased 61% year-on-year to ₹17,107 crore.

A larger order book typically improves revenue visibility for capital goods companies, especially when it is supported by execution capacity and steady customer activity. The company’s update highlights that demand remains healthy across its business lines, with order inflows outpacing quarterly revenue.

Semiconductor investments hit profitability in the quarter

The company said continued investments in the semiconductor vertical affected margins during Q4 FY26. It quantified the semiconductor segment’s negative impact on profitability at ₹38 crore for the quarter, equivalent to around 110 basis points.

While core businesses contributed to margin gains, the company indicated these were partially offset by spending on talent and capability-building for the semiconductor business. The disclosure provides investors a clearer sense of the near-term trade-off between building a new growth vertical and protecting consolidated margins.

Facility expansion: G2 plant timeline and capacity

CG Power also provided an update on capacity expansion tied to its facilities near Sanand. It said its second facility, G2, is under construction near the G1 site in Sanand and is expected to be completed by end-2026.

Once completed, the G2 facility is expected to scale capacity to around 14.5 million units per day. Together, the two facilities are expected to generate over 5,000 direct and indirect jobs, according to the company.

What the company does and where results are coming from

CG Power and Industrial Solutions is a global enterprise providing end-to-end solutions to utilities, industries, and consumers for the management and application of electrical energy. The company operates primarily through two business segments: Power Systems and Industrial Systems.

The quarter’s performance, as described by the company, was supported by continued momentum in core businesses. The same commentary also stressed disciplined execution as a factor supporting the revenue and order inflow trajectory.

Stock market reaction

Shares of CG Power and Industrial Solutions rose 0.30% to end at ₹829.95 on the BSE following the result update.

The move was modest on the day, even as the quarterly numbers showed broad-based year-on-year growth across profit, revenue, EBITDA, and order intake. Investors also had to weigh the impact of semiconductor investments that reduced profitability during the quarter.

Recent quarterly revenue trend in FY26

The company has reported steady revenue growth through FY26, with quarterly revenue moving up from June to March.

Key Q4 FY26 metrics at a glance

Market impact and why the quarter matters

For investors tracking India’s capital goods cycle, the key signals in this quarter were the combination of strong year-on-year growth in revenue and profit, expanding EBITDA margin, and a sharp rise in the order book. The rise in order intake and backlog suggests sustained customer spending and provides execution visibility.

But the semiconductor investment impact is also material, as the company explicitly disclosed a quarterly profitability drag of ₹38 crore. This frames the near-term earnings profile as a balance between core-business margin gains and the cost of building a new vertical.

Conclusion

CG Power closed Q4 FY26 with higher profits, improving margins, and a significantly larger order book, while continuing to invest in semiconductors despite a quantified hit to quarterly profitability. The next key milestone the market may track is the expected completion of the G2 facility near Sanand by end-2026 and how the investment cycle influences consolidated margins.