CG Power & Industrial Solutions Q2FY26 Results: Strong Order Book and Semiconductor Push
CG Power & Industrial Solutions Ltd reported another solid quarter in Q2FY26, with robust growth across sales, profit, and order inflow. The company’s continued diversification into semiconductors and high-voltage equipment manufacturing underscores its evolving role in India’s industrial and technology infrastructure ecosystem.
The quarter also marked a major milestone as the company commissioned its new OSAT facility in Sanand, Gujarat — an important step in India’s semiconductor mission — while simultaneously announcing a new Greenfield investment to expand its switchgear business.
Financial Performance Snapshot — Q2FY26
| Metric | Q2FY26 | YoY Change |
|---|---|---|
| Sales | ₹2,923 Cr | +21% |
| PAT | ₹284 Cr | +30% |
| ROCE (Annualized) | 31% | Stable |
| Order Intake | ₹4,772 Cr | +45% |
| Order Backlog | ₹14,953 Cr | +88% |
The company posted impressive growth in both revenue and profit, supported by strong execution in its industrial systems and power equipment divisions. Profitability improved due to better product mix and higher capacity utilization, even as input costs remained stable.
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Operational Highlights and Strategic Developments
- Semiconductor Expansion: CG Power’s subsidiary, CG Semi, launched its OSAT (Outsourced Semiconductor Assembly and Testing) facility in Sanand, Gujarat — a first-of-its-kind initiative for an Indian power equipment maker. The project positions the company as a significant participant in India’s semiconductor value chain.
- Government Backing: The project qualifies for Capital Assistance under the India Semiconductor Mission, ensuring long-term financial viability and technology partnerships.
- Switchgear Expansion: The board approved a ₹748 Cr Greenfield investment to enhance capacity in its switchgear segment, aiming to meet the rising domestic and export demand for industrial power equipment.
- Order Visibility: The company’s order backlog now exceeds ₹14,900 Cr, providing strong visibility over the next 6–8 quarters.
These developments underline CG Power’s transition from a conventional power equipment manufacturer to a diversified technology-driven industrial solutions provider.
Segment-Wise Overview
- Power Systems: Maintained double-digit growth driven by demand in transformers, switchgears, and industrial electrification solutions.
- Industrial Systems: Strong traction in motors and automation solutions, supported by government-led infrastructure push.
- Semiconductor Division: Newly commissioned OSAT facility to generate incremental revenue from FY27 onwards.
- Exports: Continued to rise, accounting for a growing share of overall sales, aided by strong demand from Middle Eastern and African markets.
CG Power’s broad-based growth reflects its ability to capture demand across industrial, infrastructure, and technology-linked segments.
Peer Comparison Snapshot
| Company | Revenue Growth (YoY) | PAT Margin (%) | Order Book Growth (%) |
|---|---|---|---|
| CG Power & Industrial Solutions | 21% | 9.7 | 88% |
| Siemens India | 17% | 10.2 | 35% |
| ABB India | 15% | 9.4 | 28% |
CG Power’s order growth stands significantly higher than its industry peers, highlighting its strong market position and diversification strategy. The company continues to outpace competitors in both revenue and order inflow momentum.
SWOT Overview — CG Power & Industrial Solutions
| Strengths | Weaknesses |
|---|---|
| Robust order book, high ROCE, diversified industrial presence, strong management execution. | Dependence on industrial demand cycles; margin sensitivity to raw material prices. |
| Opportunities | Threats |
| Semiconductor manufacturing expansion, export diversification, renewable energy demand. | Global slowdown, semiconductor project execution risks, currency volatility. |
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, notes that CG Power’s Q2FY26 performance demonstrates a strong mix of industrial resilience and strategic expansion into semiconductors. With robust order inflows, high ROCE, and strong visibility in future earnings, the company remains a key beneficiary of India’s manufacturing revival. Discover more in-depth market insights and stock reviews at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries
- How is CG Power expanding into the semiconductor industry?
- What drove CG Power’s order inflow growth in Q2FY26?
- How does CG Power’s profitability compare to peers like Siemens and ABB?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
