CG Power and Industrial Solutions Limited Earnings Summary — Q1 FY2027
CG Power Reports Strong Q1 Growth Driven by Power Systems and Announces Major Brownfield Expansion
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 4.7% sequentially in Q1 FY2027.
- Revenue of ₹3,281 Cr is 14.0% higher year-on-year.
- Revenue has compounded at 19.6% annualised over the last 10 quarters.
- Net profit of ₹313 Cr is 16.3% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 13.9% annualised across the period.
- Operating margin stands at 12.1% in Q1 FY2027.
- Operating margin compressed by 114 bps year-on-year.
- Over the last two years operating margin has contracted by 257 bps.
- PBT margin is 12.9%.
- Expenses grew 15.5% against revenue growth of 14.0%.
- Operating profit of ₹397 Cr is 4.2% higher year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 66/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 3,281 | 3,442 | 3,175 | 2,923 | 2,878 | 2,753 | 2,516 | 2,413 | 2,228 | 2,192 |
| Expenses | Improving | 2,884 | 2,975 | 2,778 | 2,546 | 2,497 | 2,406 | 2,185 | 2,118 | 1,900 | 1,908 |
| Operating Profit | Improving | 397 | 466 | 397 | 377 | 381 | 347 | 331 | 295 | 327 | 284 |
| Operating Margin | Stable | 12.1% | 13.6% | 12.5% | 12.9% | 13.3% | 12.6% | 13.2% | 12.2% | 14.7% | 12.9% |
| Other Income | Volatile | 84 | 79 | 41 | 66 | 28 | 71 | 34 | 29 | 33 | 42 |
| Interest | Volatile | 4 | 4 | 4 | 3 | 2 | 3 | 1 | 2 | 1 | 1 |
| Depreciation | Improving | 54 | 49 | 51 | 52 | 44 | 32 | 28 | 28 | 24 | 24 |
| Profit Before Tax | Improving | 423 | 492 | 384 | 388 | 364 | 384 | 335 | 294 | 336 | 301 |
| Tax | Improving | 115 | 129 | 100 | 104 | 97 | 109 | 97 | 74 | 94 | 67 |
| Net Profit | Improving | 313 | 365 | 285 | 287 | 269 | 272 | 241 | 221 | 241 | 234 |
| Net Margin | Stable | 9.5% | 10.6% | 9.0% | 9.8% | 9.3% | 9.9% | 9.6% | 9.2% | 10.8% | 10.7% |
Key Takeaways
- Consolidated revenue grew by 14% year-on-year to ₹3,281 crore, though it saw a slight sequential dip from Q4 FY26.
- The Power Systems segment continues to be the primary growth engine, with revenue rising from ₹1,070 crore to ₹1,398 crore YoY.
- The Board approved a ₹35.17 crore brownfield expansion for the Switchgear and EPD facility in Nashik to double EHV GIS capacity.
- Current EHV GIS manufacturing is operating at 91% capacity utilization, necessitating the expansion to meet a growing order pipeline.
- The Semiconductor segment reported a loss of ₹49.99 crore for the quarter, reflecting ongoing investment in this new vertical.
- The company maintains a strong balance sheet following its previous ₹3,000 crore QIP, with significant unutilized funds in fixed deposits and mutual funds.
Management Guidance
Management is prioritizing capacity expansion in the Power Systems segment to resolve production throughput constraints. The newly approved Nashik project is expected to be completed within 4-6 months, with 87% of assets eventually moving to a larger Greenfield facility.
Sentiment Shift
Stable
The core businesses in Power and Industrial systems remain robust with high capacity utilization, though overall margins were slightly compressed by investments in the Semiconductor business.
Outlook
The outlook remains strong as the company addresses capacity bottlenecks. The transition to Greenfield facilities and the scaling up of the Semiconductor business are key monitors for long-term growth.
From the Annual Report (Key Quotes)
“The current and projected order pipeline necessitates doubling of the existing manufacturing capacity to meet higher order intake.”
“The existing EHV GIS manufacturing facility is operating at full capacity, with constraints in both production throughput and available physical space.”
“The plant is unable to accommodate additional equipment or production lines without disrupting ongoing operations.”
Official Quarterly Documents
Ask AI about this quarter
This summary is AI-generated from CG Power and Industrial Solutions Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.
← Back to CG Power and Industrial Solutions Limited AI analysis