CG Power & Ind Q1 FY27 Results (NSE: CGPOWER)
Signal: Growth decelerated
The read
Consolidated revenue grew 14% YoY, but PAT growth of 15.5% was aided by a surge in other income (up 196% to ₹84 Cr); core operating profit (EBIT) grew 16.5% YoY; semiconductor segment losses deepened, while core power and industrial segments remained resilient; EPS growth lagged due to QIP dilution; sequential decline from Q4FY26 reflects seasonal softness.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,280.81 Cr | 14.0% | -4.7% |
| EBIT | ₹426.39 Cr | 16.5% | |
| Net profit | ₹308.28 Cr | 15.5% | |
| EPS | ₹1.99 | 13.1% | |
| EBIT margin | 13.0% |
P&L walk
Revenue grew 14% YoY but declined 4.7% sequentially; gross margin improved 60bps YoY to 30.8% despite raw material cost % rising to 70.3%; EBITDA margin expanded 43bps YoY to 14.66% on modest operating leverage; other income surged 196% to ₹83.58 Cr, boosting PBT; PAT grew 15.5% YoY but EPS only 13.1% due to QIP dilution; semiconductor segment loss widened sharply to ₹49.99 Cr, dragging overall results.
Segments
Semiconductor segment loss widened sharply to ₹49.99 Cr (vs ₹8.70 Cr loss last year), dragging consolidated profit; Power Systems posted strong PBIT margin of 23.2% (₹324 Cr on ₹1,398 Cr revenue), while Industrial Systems margin was 7.6% (₹136 Cr on ₹1,790 Cr revenue); standalone vs consolidated gap primarily due to semiconductor losses and consolidation adjustments.
Key positives
- Revenue grew 14% YoY to ₹3,281 Cr, with Power Systems up 30.6% YoY.
- Gross margin improved 60bps YoY to 30.8% despite rising raw material costs.
- Other income more than doubled to ₹83.58 Cr, boosting overall profitability.
- Brownfield expansion approved for EHV GIS (₹35.17 Cr, 4-6 months) to double capacity, indicating strong order pipeline.
- Power Systems segment maintained strong PBIT margin of 23.2%.
Key concerns
- Semiconductor segment loss widened sharply from ₹8.70 Cr to ₹49.99 Cr, a significant drag on consolidated profits.
- Sequential decline in revenue (-4.7%) and PAT (-14.7%) from Q4FY26.
- Raw material cost % increased to 70.3% from 66.8% YoY, pressuring margins.
- EPS growth (13.1%) lagged PAT growth (15.5%) due to dilution from QIP.
- Other income surge (196% YoY) may not be sustainable; core operating profit growth more modest.
Research and educational content only. Not investment advice.