CG Power and Industrial Solutions Limited (NSE:CGPOWER) announced on 24 July 2026 that its Board of Directors approved unaudited standalone financial results for the quarter ended 30 June 2026 and sanctioned a brownfield expansion project for its Extra High Voltage Gas Insulated Switchgear manufacturing facility at Vilholi, Nashik. The expansion project carries a total estimated cost of Rs 35.17 crores (net of taxes) and is expected to be completed within 4 to 6 months.
Key Highlights
- The Board approved unaudited standalone financial results for Q1 FY27 (quarter ended 30 June 2026), showing profit after tax of Rs 363.59 crores on revenue from operations of Rs 3,061.37 crores.
- A brownfield expansion of the EHV GIS manufacturing facility at Nashik has been approved at a total project cost of Rs 35.17 crores (net of taxes), expected to complete within 4 to 6 months.
- The project aims to double existing manufacturing capacity from 228 Equivalent Units to 600 Equivalent Units by FY30, addressing capacity constraints at the current facility operating at 91% utilization.
- The existing facility faces constraints in production throughput and physical space, with shop floor, assembly bays, testing areas, and material storage fully utilized.
- Approximately 87% of brownfield project assets are expected to be transferred to a Greenfield facility upon its commissioning.
- Financing will be through internal accruals or equity, as disclosed in the Board filing.
- Basic and diluted earnings per share for Q1 FY27 stood at Rs 2.31 per share, compared to Rs 1.87 per share in the corresponding quarter of the previous year.
About the Company
CG Power and Industrial Solutions Limited, listed on both BSE (Scrip Code 500093) and NSE (Symbol CGPOWER), is a manufacturer of electrical equipment and power systems headquartered in Mumbai. The company operates two primary business segments: Power Systems and Industrial Systems. It manufactures Extra High Voltage Gas Insulated Switchgear (GIS), switchgear products, industrial systems, and related electrical equipment. The company maintains manufacturing facilities in India and serves customers across the power transmission, distribution, and industrial sectors. As of the filing date, the company's paid-up equity share capital was Rs 315 crores, with shares of face value Rs 2 each.
Announcement in Detail
The Board meeting, held on 24 July 2026 from 11:30 a.m. to 2:10 p.m. IST, approved the unaudited standalone financial results and segment-wise financial report for Q1 FY27 (quarter ended 30 June 2026), both on a standalone and consolidated basis, as recommended by the Audit Committee. The Limited Review Report on the financial results was signed by statutory auditors M/s S R B C & CO LLP, Chartered Accountants, confirming that the Statement disclosed all required information in compliance with Regulation 33 of the SEBI Listing Regulations and contained no material misstatement.
For the quarter ended 30 June 2026 on a standalone basis, the company reported revenue from operations of Rs 3,061.37 crores, total income of Rs 3,142.21 crores (including other income of Rs 80.84 crores), and profit before tax of Rs 486.76 crores. After provisioning for current tax of Rs 122.98 crores and deferred tax of Rs 0.19 crores, profit after tax stood at Rs 363.59 crores. The Power Systems segment contributed Rs 1,401.60 crores to revenue, while Industrial Systems contributed Rs 1,670.94 crores, with inter-segment revenue of Rs 11.17 crores eliminated in consolidation.
The Board also approved a brownfield expansion project for the Extra High Voltage Gas Insulated Switchgear (GIS) manufacturing facility located at Vilholi, Nashik. The existing facility is operating at full capacity with 91% utilization in FY26 and an existing capacity of 228 Equivalent Units. The shop floor, assembly bays, testing areas, and material storage facilities are fully utilized, leaving no room for additional equipment or production lines without disrupting ongoing operations. The Board noted that the current and projected order pipeline necessitates doubling of the existing manufacturing capacity to meet higher order intake without compromising delivery timelines and quality standards. The total estimated project cost is Rs 35.17 crores (net of taxes), to be funded through internal accruals or equity. The project is expected to be completed within 4 to 6 months and will add proposed capacity of 600 Equivalent Units by FY30 (peak capacity). Upon commissioning of a Greenfield facility, approximately 87% of the brownfield project assets are expected to be transferred.
Impact on Investors
The filing shows that CG Power's operational performance in Q1 FY27 remained solid relative to the corresponding quarter of the prior year. Standalone profit after tax increased from Rs 286.39 crores in Q1 FY26 to Rs 363.59 crores in Q1 FY27, representing a year-on-year increase of approximately 26.9%. Revenue from operations grew from Rs 2,643.49 crores in Q1 FY26 to Rs 3,061.37 crores in Q1 FY27, a growth of approximately 15.8% year-on-year. Investors will note that profit before tax grew from Rs 383.20 crores to Rs 486.76 crores, indicating improvement in operational profitability even before tax adjustments. The earnings per share increased from Rs 1.87 in Q1 FY26 to Rs 2.31 in Q1 FY27.
The brownfield expansion approval represents a strategic capex deployment aimed at addressing existing capacity bottlenecks in the high-margin GIS business. The disclosed rationale indicates that the current facility, operating at 91% utilization, cannot accommodate additional production without operational disruption. Investors will observe that the company plans to double capacity through a phased approach: the brownfield project is expected to be completed in 4 to 6 months, with approximately 87% of assets subsequently transferred to a Greenfield facility. The financing through internal accruals or equity avoids immediate debt leverage. However, investors should note that the capex of Rs 35.17 crores will impact cash flows during the project implementation period, and the success of capacity absorption depends on order pipeline conversion as stated in the Board filing.
Sector / Market Context
India's power equipment manufacturing sector, particularly high-voltage switchgear and GIS products, serves the transmission and distribution infrastructure expansion driven by India's electrification and renewable energy integration goals. According to Ministry of Power data, India's electrical transmission and distribution networks have been undergoing modernization and capacity expansion. The GIS technology segment has gained traction due to space efficiency, reliability, and suitability for urban and constrained-space installations. Within this backdrop, CG Power's expansion of GIS manufacturing capacity aligns with anticipated demand from utilities and industrial customers. The company's disclosure that the existing facility is capacity-constrained with 91% utilization and that order pipelines necessitate doubling of capacity reflects sector-level demand momentum. Investors tracking the company's execution should monitor project commissioning timelines and actual order intake in the coming quarters to assess whether the expansion drives revenue accretion as anticipated.