CG Power Net Profit Up by 23.4% in June Quarter

Mumbai, July 24 2025 – CG Power and Industrial Solutions Ltd (NSE: CGPOWER, BSE: 500093)  reported a consolidated profit of ₹286 crore in the June quarter, up year-on-year by 23.4%.  Revenue increased y-o-y by 25.4% to Rs 2,643.49 crore.

The company said that one of the most strategic highlights of the quarter was the advancement of its semiconductor arm, CG Semi, a joint venture with Renesas Electronics. The Sanand OSAT facility is on track to initiate pilot production by mid-2026 and ramp to full-scale operations in 2027, the company informed. Despite recent turmoil at U.S.-based silicon carbide wafer maker Wolfspeed potentially disrupting supplies, CG Power has assured that Renesas has confirmed no impact on the JV’s plans.

Stock Performance

CG Power shares closed at ₹682.00 on July 24, down 0.14% or ₹0.95 for the day. The stock opened at ₹683.10 and touched an intraday high of ₹687.00 and a low of ₹653.60.

Key Financial Highlights (Standalone)

In Q1FY26, CG Power and Industrial Solutions Ltd reported a strong financial performance, with revenue from operations rising 25.4% year-on-year to ₹2,643.49 crore, and 3.1% quarter-on-quarter. Profit before tax stood at ₹383.20 crore, reflecting a marginal sequential growth of 0.5% and a 17.9% increase over Q1FY25. The company’s net profit (PAT) grew 23.4% YoY to ₹286.39 crore, while the basic and diluted EPS improved to ₹1.87, up 3.9% QoQ and 23% YoY, underscoring consistent earnings momentum.

Segment Performance (Standalone)

In Q1FY26, CG Power’s standalone segment performance remained robust, with the Power Systems segment generating ₹1,070.14 crore in revenue and contributing ₹225.31 crore in EBIT. The Industrial Systems segment led in topline, clocking ₹1,573.94 crore in revenue and delivering ₹171.50 crore in EBIT. Together, the total standalone revenue stood at ₹2,644.08 crore, with a combined EBIT of ₹396.81 crore, reflecting strong operational efficiency across both business verticals.

CG Power reported marginal sequential growth in both revenue and profitability. The Power Systems division led profitability while Industrial Systems remained stable.

Consolidated Financial Highlights

For Q1FY26, the company reported a 29.2% year-on-year (YoY) rise in revenue from operations to ₹2,878.05 crore, compared to ₹2,227.52 crore in Q1FY25. Total income stood at ₹2,906.30 crore, up 28.5% YoY. Net profit rose 10.6% YoY to ₹266.87 crore, while consolidated earnings per share (EPS) increased by 11.4% to ₹1.76 from ₹1.58 in the same quarter last year.

Notably, the consolidated revenue was supported by emerging contributions from the semiconductor business which booked ₹108.49 crore in Q1FY26 revenue.

Corporate Announcements

• Qualified Institutional Placement (QIP): Post quarter-end, CG Power raised ₹3,000 crore via QIP on July 4, 2025. The company allotted 4.54 crore equity shares at ₹660 apiece, including ₹658 premium per share.
• RF Business Acquisition: During Q1FY26, CG Power (via subsidiaries) completed the acquisition of the RF Components business from Renesas Electronics for ₹285.48 crore, enhancing its semiconductor footprint.

Segment Assets & Liabilities (Consolidated as of Q1FY26)

The newly carved out Semiconductor segment added over ₹1,250 crore in assets, reinforcing the company’s diversification strategy.

Management Commentary

Anoop Kaul, Managing Director & CEO, stated:

“We are pleased with the consistent growth in both our traditional businesses and the acceleration in our semiconductor division. The successful QIP and acquisition of the RF Components business position us for long-term strategic expansion.”

Strategic Outlook

CG Power continues to build on its core power and industrial systems businesses while expanding aggressively in high-margin semiconductor solutions, including OSAT and RF components. The company expects enhanced revenue contribution from these verticals in upcoming quarters.

About the Company

CG Power and Industrial Solutions Ltd, part of the Murugappa Group, is listed on NSE and BSE. It provides end-to-end solutions in power systems, industrial automation, and semiconductors, catering to domestic and global markets. The company has been undergoing significant transformation under new leadership and strategic investments.

Auditors SRBC & Co LLP issued an unmodified review report for both standalone and consolidated Q1FY26 results.

REF:https://nsearchives.nseindia.com/corporate/CGPOWER_24072025141511_Outcome.pdf

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