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Informist, Friday, Jul. 24, 2026

By Sunil Raghu and Ashutosh Pati

AHMEDABAD/MUMBAI--CG Power and Industrial Solutions Ltd. Friday said it is working to explore the possibility of expanding the capacity of the upcoming power transformer manufacturing plant beyond 45,000 mega volt ampere.

Speaking to analysts in a post-June-quarter earnings call, the company's management said the work on expansion of this new 45,000 MVA plant is on schedule, and they hoped to start operations from this plant in the "next few months". CG Power, which currently has an installed capacity to make 75,000 MVA power transformers, is setting up a new plant at Ahmednagar, Maharashtra, with a target to begin commercial production of high-voltage power transformers used by power transmission utilities in 2027-28 (Apr-Mar).

"I think we should do hopefully in 12 to 14 months. Let's see how quickly we are getting ready and start commercial production," the company management said. "...the first phase in the first quarter will be at least 10,000 MVA, going to 30,000 in the second quarter, and third quarter will be peak at 45."

The electrical engineering solutions provider's consolidated net profit rose over 16% on year but fell more than 14% sequentially to INR 3.13 billion. The Mumbai-based company's consolidated revenue rose 14% on year and fell almost 5% sequentially to INR 32.81 billion. 

Talking of the order book, the company management said overall, the consolidated order intake for the quarter added up to INR 52.11 billion. The consolidated unexecuted order backlog amounted to INR 189.65 billion as of Jun. 30, up 45% on year. The backlog of nearly INR 145 billion gives them revenue visibility spanning several future quarters.

The management said the company would also want to have a presence in multiple markets as a hedge. "...we will have it spread out fairly evenly to make sure that even if something happens in one market, something is there to survive. India will continue to be our primary growth market because that's where we originate from," the company official said. "But we will keep expanding into America, Europe and MENA (Middle East North Africa)."

Sharing details of operational performance in the June quarter, the management said in its industrial segment, aggregate sales were INR 16.71 billion, 6% higher year-on-year, with strong double-digit growth in motors. For Power Systems, sales for the quarter were INR 14.02 billion, up 31% on year.

On being asked if any price hikes were proposed after a 17.5% increase put into effect by the company to cover raw material inflation, the official said, "It's a constant journey". He told analysts that the company had taken another 5% price hike to offset any rise in cost of commodities. "Is that sufficient? No. Because commodities are so inflationary, we have to keep an eye on it and make sure that we have as much as possible realisation of those price increases in the market," he added.

CG Power and Industrial Solutions is part of the Murugappa Group, which manufactures electric three-wheelers through its subsidiary Montra Electric. Shares of the company closed 1.8% lower Friday at INR 867.70 on the National Stock Exchange.  End

Edited by Deepshikha Bhardwaj

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