Q1 2026 CG Power and Industrial Solutions Ltd Earnings Call Transcript
Key Points
- CG Power & Industrial Solutions Ltd (BOM:500093) reported a 25% year-over-year growth in Q1 sales, reaching INR 2,643 crores.
- The company achieved a 23% increase in profit after tax, amounting to INR 286 crores.
- Order intake for the quarter grew by 56% year-over-year, with a robust order backlog of INR 11,971 crores.
- The Power Systems segment saw a 43% increase in sales, with margins improving due to better price realization and operating leverage.
- CG Power successfully raised INR 3,000 crores through a QIP of equity shares, which was oversubscribed by more than 3x.
- Industrial segment margins were impacted by rising commodity prices and an increasing share of the Railway business.
- The Drives and Automation business in Europe faced lower sales, affecting fixed cost absorption.
- The LT Motor market remains stagnant, with no immediate signs of recovery.
- Employee costs increased by 52% year-over-year, partly due to new operations and investments in CG Semi.
- The semiconductor business, Axiro, is currently operating at lower single-digit margins during its transition year.
Ladies and gentlemen, good day, and welcome to the CG Power Q1 FY26 earnings conference call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Ms. Renu Baid Pugalia from IIFL Capital. Thank you, and over to you, ma'am.
Thank you. A very good evening, everyone. We are here for the 1Q FY26 earnings conference call of CG Power and Industrial Solutions. From the management team, we have with us today Mr. Amar Kaul, Managing Director; Mr.
Susheel Todi, Chief Financial Officer; Mr. Marais Nel, EVP, Drives and Automation and Industrial Motors Business; Mr. Gaurav Makhija, Vice President, Switchgears and EPD Business; Mr. Ajay Jain, Vice President, Transformer Business; Mr. Chidambaram Balakrishnan, Vice President, Railway Business; Mr.
Jatinder Kaul, EVP, Motors Business, India Subcontinent; and Mr. Sriram Rangarajan, EVP, Head, Consumer Products Business.
With these words, I now hand over the call to Mr. Amar Kaul for his opening remarks.
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