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Informist, Wednesday, May 6, 2026

 

--CG Power: Exports accounted for 5-6% of consolidated sales in FY26 
--CG Power:Transformer deliveries to US exceeding 12 mos on supply chain woes 
--CG Power: Hiked prices in motors segment by 17.5% in last 3-4 quarters 
--CG Power: To add 45,000 MVA power transformer capacity in Jul-Aug 
--CONTEXT: Comments by CG Power mgmt in post-earnings analyst call 
--CG Power: Have power transformer capacity of 75,000 MVA at Bhopal, Gwalior

 

By Sunil Raghu and Astha Oriel

 

AHMEDABAD/NEW DELHI – CG Power and Industrial Solutions Ltd. hopes to add 45,000 megavolt-ampere of power transformer capacity and begin part operations between July and August, the company's management told analysts in post-earnings call on Wednesday. Post the expansion, the total transformer capacity in its Gwalior and Bhopal plants will be around 110,000 MVA by the end of the current calendar year. As of now, CG Power has power transformer capacity of 75,000 MVA at its facilities in Bhopal and Gwalior. 

 

"...initially, we will be starting with the capacity of 25,000 to 30,000 MVA, and by the end of this calendar year, we will be touching the peak of 45,000 MVA," the management said. In its commentary post the earnings, it highlighted that the current upcycle in the power equipment space was far from peaking, with demand continuing to outstrip supply. 

 

CG Power on Wednesday reported its highest net profit in the last nine quarters, as total expenses grew more slowly year-on-year than revenue growth. The consolidated net profit of CG Power for the March quarter grew more than 34% on year and over 28% sequentially to INR 3.65 billion. The consolidated net sales rose 25% on year and over 8% on quarter to INR 34.42 billion. This was the 21st consecutive quarter of a year-on-year increase in the company's revenue.

 

The expansion in power systems capacity comes amid persistent supply constraints globally, particularly in the US market, where transformer delivery timelines exceed 12 months due to component bottlenecks. While exports currently contribute 5–6% of consolidated sales, the company sees significant headroom for growth, especially in developed markets facing acute equipment shortages. The management noted that export order bookings have more than doubled year-on-year, supported by improving global engagement.

 

In the industrial segment, the motors business witnessed both volume growth and pricing actions, with the company implementing cumulative price hikes of about 17.5% over the past three-four quarters. Despite input cost pressures, CG Power has largely maintained market share, aided by pricing discipline and cost optimisation efforts.

 

Margins in the power business expanded meaningfully, driven by operating leverage and efficient execution, while commodity risks remain largely pass-through in large projects such as transformers. Overall, the management reiterated that the power equipment cycle, with capacity expansion, export focus and a strong order pipeline positioning the company for sustained growth into 2026-27.

 

On Wednesday, shares of CG Power closed at INR 828.90, up 0.2%.  End

 

Edited by Avishek Dutta

 

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