Company Overview

CG Power and Industrial Solutions Limited reported strong financial performance for FY 2025-26, with consolidated revenue growing 25% to ₹12,418 crores and net profit increasing 23% to ₹1,199 crores. On a standalone basis, the company achieved revenue of ₹11,331 crores (21% YoY growth) and net profit of ₹1,317 crores (35% growth).

Financial Performance

Revenue Breakdown: Power Systems segment revenue grew 47% to ₹5,136 crores, while Industrial Systems grew 6% to ₹6,745 crores. The newly established Semiconductors segment contributed ₹503 crores revenue with segment loss of ₹108 crores.

Capital Structure: The company successfully raised ₹3,000 crores through Qualified Institutional Placement (QIP) in July 2025, issuing 45.45 million shares at ₹660 per share. As of March 2026, ₹381 crores had been utilized for semiconductor expansion and capex requirements.

Dividend: The board declared and paid an interim dividend of ₹1.30 per share, totaling ₹204.74 crores, with no further dividend recommended for FY26.

Operational Highlights

Order Book: The company reported strong order intake of ₹17,574 crores (30% YoY growth) with unexecuted order book standing at ₹15,719 crores (59% increase).

Capacity Expansion: Transformer capacity expanded from 40,000 MVA to 65,000 MVA, with greenfield expansion approved for additional 45,000 MVA at ₹712 crores. Switchgear capacity doubling approved at ₹748 crores investment.

Subsidiary Performance: The company invested ₹511 crores in subsidiaries including CG Semi Private Limited (developing OSAT facility) and Axiro Semiconductor. Several new international subsidiaries were established under Axiro Semiconductor in USA, China, and Turkey.

Corporate Governance

AGM Details: The 89th Annual General Meeting was convened on July 24, 2026 to adopt financial statements, confirm interim dividend, and re-appoint Director Vellayan Subbiah. The meeting also sought shareholder ratification of ₹9.13 lakh remuneration for cost auditor.

Board Composition: The board comprised 7 directors with 100% attendance at 5 board meetings. Key appointments included re-appointment of three independent directors for second terms.

ESG and Sustainability Performance

Environmental: The company allocated 5.25% of capex (₹45.32 crores) to environmental improvements and reported carbon neutrality target for Scope 1 and 2 emissions by 2030. Energy consumption totaled 221,079 GJ with 9.6% from renewable sources.

Social: Employee engagement score improved to 82 with 94% participation. Women represented 14% of top management positions. The company maintained 100% coverage for health insurance, accident insurance, and parental benefits.

Governance: Zero complaints received regarding conflict of interest. ESG assessment expanded to cover 85% of suppliers by value. CSR spending of ₹21.31 crores exceeded the mandatory requirement.

Regulatory and Compliance

Tax Litigations: Multiple tax disputes ongoing with estimated demand of ₹1,308 crores. The company has obtained stays on demands by paying ₹116 crores under protest and believes demands are not sustainable based on legal opinions.

Audit Matters: Statutory auditors issued unqualified opinion with emphasis on revenue recognition and tax litigation as key audit matters. Minor audit trail compliance issues were noted but had no material impact on financial statements.

Ongoing Investigations: The company continues to cooperate with SFIO, CBI and ED investigations relating to past periods, with management believing no financial impact is expected based on legal advice.

Future Outlook

The company continues to focus on growth across its core power and industrial systems businesses while strategically expanding into the semiconductor sector through significant investments in OSAT facility development, supported by government grants under the India Semiconductor Mission scheme.