CG Power & Industrial Solutions (CGPOWER) Q1 25/26 earnings summary

Executive summary

• Achieved all-time high quarterly standalone revenue and PBT, with strong growth across key financial metrics.

• Q1 sales grew 25% year-over-year, PAT up 33%, and order intake surged 56% year-over-year.

• Robust order backlog of INR 11,971 crore, up 70% year-over-year, providing strong revenue visibility.

• Consolidated results include Axiro (semiconductor business) for the first time, contributing to 29% sales growth year-over-year.

• Board approved unaudited standalone and consolidated financial results for Q1 FY26, with limited review by statutory auditors confirming no material misstatements.

Financial highlights

• Standalone Q1 sales: INR 2,643.49 crore (+25% YoY); PAT: INR 286.39 crore (+33% YoY).

• Free cash flow: INR 339 crore (119% of PAT); ROCE annualized at 35%.

• Consolidated Q1 sales: INR 2,878.05 crore (+29% YoY); PAT: INR 266.87 crore (+11% YoY).

• Operating cash flow: INR 441 crore (165% of PAT); CapEx by subsidiaries: INR 383 crore, mainly for CG Semi.

• Basic and diluted EPS for the quarter were ₹1.87 (standalone) and ₹1.76 (consolidated), both higher year-over-year.

Outlook and guidance

• Management expects further margin improvement and sustained high order inflows.

• Power segment margins expected to remain strong or improve beyond current 20% levels.

• Industrial segment growth driven by railways and motors, with ongoing efforts to penetrate new verticals and export markets.

• Semiconductor mini plant to start production in 2026, main plant in 2027; Axiro revenue already contributing.

• QIP of ₹3,000 crore completed post quarter-end to support growth and strategic initiatives.