24-Oct-2026 15:20:26
CG POWER Q2 CONCALL : TARGETS HIGH DOUBLE-DIGIT LONG-TERM GROWTH, POWER SYSTEMS ORDERS UP 137% YOY & TRANSFORMER CAPACITY EXPANSION ACCELERATES
• MANAGEMENT ASPIRING FOR HIGH DOUBLE-DIGIT LONG-TERM REVENUE GROWTH, WITH NO FORMAL FY27 GROWTH GUIDANCE • CONSOLIDATED ORDER BACKLOG UP 58% YOY TO ₹23,646 CR, SUPPORTING FUTURE REVENUE VISIBILITY • POWER SYSTEMS ORDER INTAKE SURGED 137% YOY TO ₹6,258 CR, WITH BACKLOG UP 81% TO ₹18,964 CR • MANAGEMENT HOPEFUL OF SUSTAINING OR IMPROVING POWER SYSTEMS PBIT MARGIN OF 25% • TOTAL POWER TRANSFORMER CAPACITY PLANNED TO EXPAND TO APPROXIMATELY 1.20 LAKH MVA • BHOPAL TRANSFORMER CAPACITY TO INCREASE TO 75,000 MVA FROM 65,000 MVA, WITH ADDITIONAL 45,000 MVA GREENFIELD CAPACITY PLANNED • NEW SEHORE TRANSFORMER FACILITY COMMISSIONED, WITH PEAK CAPABILITY OF APPROXIMATELY 35 TRANSFORMERS PER MONTH • ₹300 CR SWITCHGEAR EXPANSION APPROVED, WITH ADDITIONAL CAPACITY EXPECTED WITHIN 30–36 MONTHS • EHV CIRCUIT BREAKER CAPACITY TO INCREASE 50%, WHILE GIS MANUFACTURING CAPACITY PLANNED TO MORE THAN DOUBLE • EXPORT ORDER BOOKINGS UP APPROXIMATELY 200% QOQ, SUPPORTED BY STRONG INTERNATIONAL POWER EQUIPMENT DEMAND • FY27 CORE BUSINESS CAPEX EXPECTED AROUND ₹1,000 CR, FOLLOWED BY ₹700–800 CR IN FY28, EXCLUDING SEMICONDUCTOR INVESTMENTS • KAVACH EXECUTION EXPECTED TO BEGIN IN Q3 FY27, SUBJECT TO FINAL APPROVAL; G.G. TRONICS ORDER BOOK AT ₹1,069 CR • RAILWAYS BUSINESS MAY REMAIN FLAT OR DECLINE, WITH LIMITED RECOVERY EXPECTED FOR APPROXIMATELY ONE YEAR • CG SEMI G2 QUALIFICATION TARGETED FROM MID-CY2027, WHILE COMMERCIAL PRODUCTION TIMELINE REMAINS UNCLEAR • KAVACH APPROVAL DELAYS, TRANSFORMER CAPACITY RAMP-UP, SEMICONDUCTOR EXECUTION & SUSTAINABILITY OF 25% POWER SYSTEMS MARGINS REMAIN KEY RISKS
CG POWER AND IND SOL LTD