CG Power achieved record highs on the back of robust order inflows and significant capacity expansion initiatives. According to reports from Business Standard, the company's FY26 order inflows stood at ₹19,600 crore, up 34% year-on-year, driven primarily by the power systems division. The total order book reached ₹17,100 crore, up 61% YoY, with Q4FY26 alone contributing ₹5,300 crore in new orders. The strong order momentum reflects healthy demand across utilities, exports, and data centers, positioning the company well for future growth.
The company delivered strong financial results for FY26, with consolidated revenue growing 25% YoY to ₹3,400 crore in Q4FY26. As reported by Business Standard, gross margins expanded 230 basis points YoY to 32.1%, while EBITDA increased 36% YoY to ₹500 crore with margins expanding 110 basis points to 13.7%. Net profit rose 34% YoY to ₹400 crore in Q4FY26, with margins at 11%. For the full year FY26, revenue grew 25%, EBITDA increased 25%, and net profit rose 27% YoY, though EBITDA margins remained flat at 13.1%. In the latest Q4FY26 results, the company posted a jump of 32% year-on-year in consolidated net profit to ₹362 crore compared to ₹274 crore in the same period last year, with revenue from operations increasing 25% YoY to ₹3,442 crore.
The power systems division emerged as the primary growth driver, delivering FY26 revenue growth of 46% YoY to ₹5,100 crore and PBIT growth of 68% YoY to ₹1,100 crore with margins expanding 290 basis points to 21.9%. According to Business Standard, the division benefited from price hikes of nearly 17.5% across FY26 that successfully offset raw material inflation. Order inflow remained strong at ₹11,200 crore, up 69% YoY, taking the backlog to ₹12,600 crore, up 91% YoY. The division's capacity expansion will increase transformer capacity from the current 65,000 MVA to 110,000 MVA by end of CY26 with the commissioning of a greenfield facility. This accelerated expansion timeline is both larger and sooner than the previously guided 85,000 MVA by FY28, providing necessary headroom to fulfill high-margin export orders once domestic needs are met.
CG Power is capitalizing on significant export potential in the US market, where there is an acute supply deficit for power transformers and generation step-up transformers driven by data-center expansion, electrification, and aging infrastructure. This has led to lead times of up to 144 weeks, creating massive opportunities as imports now meet 80% of US PT demand. The company secured a landmark ₹900 crore order from Tallgrass Integrated Logistics in January 2026 for a large-scale US data centre, which Nomura views as a critical demonstration of CG Power's ability to win direct, high-value US export business at scale in the demanding hyperscale data centre segment. The company is also focusing on in-house product development through high-efficiency motors and new drives in the Industrial Systems segment, while generating higher service revenue from existing products like traction motors in railways.
Nomura raised its price target for CG Power to ₹1,100 from ₹1,050 while maintaining its Buy rating, citing strong US export opportunities, increased capacity expansion, and rising earnings outlook. Due to stronger export outlook and higher anticipated margins, Nomura raised its FY28 and FY29 EPS estimates by 4% and 5% respectively, projecting a robust 33% EPS CAGR over FY26–29. The stock has delivered over 7% returns in the last one month and almost 44% in the past six months, though it fell 2.5% in the last five trading sessions. Looking ahead, the company expects revenue growth in the mid-20s with EBITDA margins moving to 14-15% as better margins in power systems drive near-term performance. The semiconductor business is projected to achieve EBITDA breakeven in FY28 following capacity expansion completion.
