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

Executive summary

• Achieved all-time high quarterly standalone revenue and PBT, with strong order intake and robust backlog, providing high revenue visibility for the coming quarters.

• Consolidated results include Axiro's operational performance for the first time, reflecting expansion into the semiconductor business.

• 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 grew 25% year-over-year to INR 2,643 crore; profit after tax up 33% to INR 286 crore.

• Consolidated sales up 29% year-over-year to INR 2,878 crore; consolidated PAT up 11% to INR 267 crore.

• Free cash flow for the quarter was INR 339 crore (119% of PAT); return on capital employed annualized at 35%.

• Operating cash flow at INR 441 crore (165% of PAT); CapEx by subsidiaries at 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 margin improvement and targets a return to 14-15% PBT margins at the company level.

• Power segment margins expected to remain strong or improve further, with bullish demand outlook for the next five years.

• 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.

• Acquisition of RF Components business from Renesas Electronics America Inc. to strengthen semiconductor segment.