Whalesbook
CG Power and Industrial Solutions Ltd. has announced its highest-ever fiscal year performance for FY26, driven by a strong fourth quarter. The company reported record standalone revenue of ₹11,331 crore, a 21% increase year-over-year.
Standalone profit after tax (PAT) before exceptional items for the full fiscal year surged 39% to ₹1,352 crore. The fourth quarter (Q4 FY26) also showed strong momentum, with standalone sales up 22% to ₹3,129 crore and PAT (before exceptional items) jumping 49% to ₹412 crore.
On a consolidated basis, FY26 revenue grew 25% to ₹12,418 crore, with PAT (before exceptional items) rising 27% to ₹1,232 crore. This represents significant growth from the previous year, when consolidated revenue stood at ₹9,909 crore and PAT was ₹1,153 crore. Consolidated Q4 FY26 sales increased by 25% to ₹3,442 crore, and PAT grew 32% to ₹362 crore.
A significant indicator of future growth is the company's order backlog. The standalone order book reached ₹15,719 crore, a substantial 59% year-on-year increase. Consolidated backlog climbed 61% to ₹17,107 crore, providing considerable revenue visibility for the upcoming fiscal year. This backlog includes major wins such as a ₹641 crore package from PGCIL and a ₹900 crore export order from the USA.
CG Power's strong performance is supported by strategic investments aimed at diversification and tapping into high-growth segments. The company is expanding its semiconductor business, notably through an Outsourced Semiconductor Assembly and Test (OSAT) facility. Investments are also underway for its Switchgear business, including a planned ₹748 crore greenfield expansion in Western India.
To fund these growth initiatives, CG Power, part of the Murugappa Group, successfully raised approximately ₹3,000 crore via a Qualified Institutional Placement (QIP) in July 2025. This capital injection supports ambitious expansion plans and strategic acquisitions. The company had previously approved plans to raise up to ₹3,500 crore through a similar route in October 2024.
Beyond OSAT and Switchgear, CG Power has bolstered its semiconductor capabilities by acquiring Renesas Electronics Corporation's RF components business and completing a 55% acquisition of GG Tronics India for its railway segment.
The enhanced revenue visibility from the record order backlog provides a clear roadmap for FY27 and beyond. The expansion into high-growth sectors like OSAT and advanced switchgear positions CG Power for future opportunities. However, the company faces execution risks related to its ambitious expansion plans. While past regulatory scrutiny, including a SEBI penalty for disclosure norms that was later set aside by the SAT, highlights the importance of compliance, recent warning letters for delayed disclosures underscore the need for continuous attention to disclosure requirements.
CG Power operates in a competitive environment alongside global players like Siemens and ABB, and domestic companies such as Havells India and BHEL. While Siemens and ABB lead in advanced automation, CG Power holds strong positions in India for transformers and industrial motors and is strategically expanding into semiconductors. BHEL remains a key competitor for large public sector utility projects.