Q2 2026 CG Power and Industrial Solutions Ltd Earnings Call Transcript
Key Points
- CG Power & Industrial Solutions Ltd (BOM:500093) reported a strong performance with a 17% year-over-year sales growth in Q2.
- The company achieved a 38% year-over-year increase in profit after tax, reaching INR307 crore.
- Order intake grew by 32% year-over-year, with a robust backlog of INR13,568 crore, providing multi-quarter visibility.
- The Power Systems segment showed a 48% year-over-year sales increase, driven by strong demand and disciplined execution.
- The company is expanding its semiconductor capabilities with a new factory in Ahmedabad, aiming for a capacity of 15 million chips per day, creating 5,000 jobs.
- The Industrial segment saw a 2% year-over-year decline in sales due to project deferments in the railway segment.
- Profit margins in the railway business were impacted by price realization challenges and commodity price increases.
- The semiconductor business is incurring costs that are affecting the overall EBITDA of the company.
- There are concerns about potential competition from Chinese players in the transformer market, which could impact future growth.
- Execution delays in railway projects have shifted some revenue to future quarters, affecting short-term financial performance.
Ladies and gentlemen. Good day, and welcome to CG Power Q2 FY26 earnings conference call hosted by IIFL Capital Services Limited. (Operator Instructions) Please note that this conference is being recorded. Now I hand the call over to Ms. Renu Baid.
Thank you. Very good afternoon, everyone. On behalf of IIFL Capital, I welcome the management of CG Power, to discuss the Q2 earnings conference call with us. We have the senior leadership team with us represented by Mr. Amar Kaul, Managing Director; Mr. Susheel Todi, Chief Financial Officer; Mr. Marais Nel, EVP, Drives and Automation and International Motors business; Mr. Gaurav Makhija, Vice President, Switchgear & EPD business; Mr. Ajay Jain, Vice President, Transformer business; Mr. Chidambaram Balakrishnan, Vice President, Railway business; Mr. Jatinder Kaul, EVP Motors business; and Mr. Sriram Rangarajan, EVP, Head Consumer Products business.
I would now like to hand over the call to Mr. Amar Kaul for his opening comments. Thereafter, we can start with Q&A.
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