CG Power Q4 profit rises 32% as chip spend hits margins

What CG Power reported for the March quarter

CG Power and Industrial Solutions Ltd reported a 32% year-on-year rise in consolidated net profit to Rs 362 crore for the fourth quarter ended March 31, 2026. The company had posted a net profit of Rs 274 crore in the corresponding quarter last year. The earnings growth was supported by higher revenue, strong order inflows, and continued momentum across the company’s core businesses.

At the same time, management flagged that investments to build talent and capabilities for its semiconductor vertical continued to weigh on margins. The company said margin gains from the standalone business were partly offset by these investments.

Revenue and operating performance improved

Revenue from operations rose 25% year-on-year to Rs 3,442 crore in the January-March quarter, compared with Rs 2,753 crore a year earlier. EBITDA increased 30% year-on-year to Rs 544 crore, indicating stronger operating performance alongside the revenue expansion.

CG Power also disclosed that return on capital employed (annualised) stood at 24% for the quarter. The company linked the performance to growth in its core operations and sustained order momentum during the period.

Full-year sales growth stayed strong

For the full fiscal year, aggregate sales rose 25% year-on-year to Rs 12,418 crore. The company’s commentary pointed to sustained demand and execution across its key businesses through the year.

While the quarterly update focused on Q4 momentum, the full-year sales figure provides context on the scale of the current cycle and the base going into FY27.

Order inflows rose, supporting FY27 visibility

Order inflows remained strong during the quarter, with intake rising 39% year-on-year to Rs 5,335 crore. CG Power said the unexecuted order backlog stood at Rs 17,107 crore as of March 31, 2026, marking a 61% increase over the previous year. The company described this as providing strong revenue visibility for FY27.

Separately, the company also said order momentum during the quarter was supported by several key wins, taking the order backlog up 59% year-on-year to Rs 15,719 crore. The two backlog figures were disclosed in the same results update, with both highlighting a sharp year-on-year expansion in pending execution.

Semiconductor investments weighed on quarterly profitability

CG Power said continued investments in building talent and capabilities for its semiconductor business reduced profitability in the quarter. The semiconductor segment had an impact of Rs 38 crore on profitability, which the company quantified as around 110 basis points.

The company’s update framed this as a deliberate investment phase while the core businesses delivered margin gains. No standalone margin number was provided, but the company’s narrative was that operating improvements were partially offset by the semiconductor build-out.

What the company is building in semiconductors

CG Semi Private Limited, a subsidiary of CG Power and Industrial Solutions Ltd, last year launched its G1 OSAT facility with capabilities in conventional and advanced semiconductor packaging. The company said the G1 facility has a peak capacity of 0.5 million units per day.

Its second facility, G2, is under construction near the G1 site in Sanand. CG Power said G2 is expected to be completed by end-2026 and will scale capacity to nearly 14.5 million units per day. Together, the two units are expected to generate over 5,000 direct and indirect jobs.

Key numbers snapshot

Semiconductor facilities and capacity plan

Why this update matters for investors

The quarter showed that CG Power is expanding revenue while maintaining strong order momentum, which helps visibility into future execution. A 61% rise in the unexecuted backlog to Rs 17,107 crore is a key operational marker because it suggests a larger pipeline to convert into revenue.

At the same time, the company has been transparent about the near-term profitability trade-off from its semiconductor push, including a quantified quarterly impact of Rs 38 crore. The update signals that the company is running two tracks in parallel: driving growth in established businesses while funding capability building in a new vertical.

Conclusion

CG Power’s March-quarter results combined higher profit and operating performance with a sharp rise in order backlog, supporting its stated FY27 revenue visibility. The company also reiterated that semiconductor investments are currently weighing on margins, with a quantified profitability impact during the quarter. The next operational milestones to watch include progress on the G2 facility in Sanand, which CG Power expects to complete by end-2026.