The article outlines it semiconsutor business potential of the company, which is a global enterprise providing end-to-end solutions to utilities, industries, and consumers for the management and application of efficient and sustainable electrical energy
With a market capitalization of Rs 1,41,690 crore, CG Power & Industrial Solutions Ltd’s share closed at Rs 899 per share, down by 1.06 percent from its previous close. The stock of the company gave a return of 17.3 percent over the last year.
About the Company
How much money did the company make as of Q1 FY27?
QoQ: Revenue declined to Rs 3,281 crore in Q1 FY27 from Rs 3,442 crore in Q4 FY26, down 5 percent QoQ. EBITDA declined to Rs 397 crore in Q1 FY27 from Rs 466 crore in Q4 FY26, down 15 percent QoQ. Net profit declined to Rs 308 crore in Q1 FY27 from Rs 363 crore in Q4 FY26, down 15 percent QoQ, while EPS stood at Rs 1.99 compared with Rs 2.32, down 14 percent QoQ.
YoY: Revenue increased to Rs 3,281 crore in Q1 FY27 from Rs 2,878 crore in Q1 FY26, registering a 14 percent growth YoY. EBITDA rose to Rs 397 crore in Q1 FY27 from Rs 381 crore in Q1 FY26, up 4 percent YoY. Net profit increased to Rs 308 crore in Q1 FY27 from Rs 267 crore in Q1 FY26, up 16 percent YoY, while EPS stood at Rs 1.99 compared with Rs 1.76, up 13 percent YoY.
Which business currently contributes the most to CG Power?
CG Power mainly operates across Power Systems and Industrial businesses. In Q1 FY27, Power Systems generated revenue of Rs 1,402 crore, up 31 percent YoY, while the Industrial segment reported revenue of Rs 1,671 crore, up 6 percent YoY.
However, Power Systems was the stronger contributor to segment profits. The segment reported PBIT of Rs 324 crore in Q1 FY27, compared with Rs 148 crore from Industrial. Its PBIT margin also stood at 23 percent, compared with 21 percent in the year-ago period.
The semiconductor business is still in its investment phase compared with CG Power’s core operations. The company said the segment impacted consolidated profitability by Rs 43 crore, or 132 bps, in Q1 FY27. With commercial production now underway, the company is focused on scaling its semiconductor operations.
Order Book Analysis
CG Power’s consolidated order backlog stood at Rs 18,965 crore in Q1 FY27, up 45 percent YoY. Power Systems formed the largest part at Rs 14,434 crore, up 59 percent YoY, supported by strong demand across the segment.
The Industrial segment had an order backlog of Rs 2,899 crore, while G.G. Tronics held an order book of around Rs 1,000 crore. Axiro also contributed to the difference between the standalone and consolidated order backlog.
Semiconductor Business status and how it will become a growth driver
Commercial production has begun
CG Semi began commercial production at its G1 OSAT facility in Sanand in July 2026. This marks an important shift for CG Power’s semiconductor business, as the company has now moved from setting up the facility and developing capabilities to actually starting commercial production.
Renesas could take nearly half the capacity
Renesas is CG Power’s semiconductor technology partner in its CG Semi venture. Management said Renesas is expected to take close to 50 percent of the facility’s capacity. At the same time, CG Power is in discussions with other potential customers. This could help the company gradually build utilisation at the Sanand facility as production scales up.
Axiro is already generating revenue
Axiro is CG Power’s semiconductor business that makes chips and components used in communication and satellite applications. Unlike CG Semi, Axiro is already a revenue-generating semiconductor business. Management expects Axiro to deliver double-digit top-line growth, providing an existing source of semiconductor revenue while CG Power works on scaling its newer OSAT business.
New orders could nearly double Axiro
Recent orders could take Axiro to almost twice its previous size if the current momentum continues, according to management. The company is also exploring opportunities in power electronics and other adjacent areas, which could expand Axiro’s addressable market beyond its existing RF(Radio Frequency) and SATCOM(Satellite Communication) business.
The business remains a long-term investment
The semiconductor business impacted consolidated profitability by Rs 43 crore in Q1 FY27 as CG Power continued investing in technology and talent. Management has maintained a long term approach toward the segment, indicating that the current focus remains on building capabilities and scaling the business.
Conclusion
CG Power’s semiconductor business is still small compared with its core Power Systems and Industrial Systems businesses and is currently impacting profitability due to continued investments. However, the start of commercial production at the Sanand OSAT facility marks an important step toward scaling the business and building a larger semiconductor revenue base.
With Renesas expected to take close to 50 percent of the facility’s capacity and Axiro already generating revenue with double-digit growth expectations, the segment has several factors that could support its expansion. The pace of capacity utilisation, new customer additions, and growth in Axiro will be key factors to watch as the business develops.