CG Power and Industrial Solutions Ltd (NSE: CROMPGREAV) Q3 2026 Earnings Call dated Jan. 27, 2026
Corporate Participants:
Amar Kaul — Managing Director and Chief Executive Officer
Analysts:
Unidentified Participant
Renu Baid Pugalia — Analyst
Ankur Sharma — Analyst
Mohit Kumar — Analyst
Atul Tiwari — Analyst
Aditya Mongia — Analyst
Saif Sohrab Gujar — Analyst
Anupam Goswami — Analyst
Sumit Kishore — Analyst
Sameer Thakur — Analyst
Umesh Raut — Analyst
Harshit Patel — Analyst
Subramaniam Yadav — Analyst
Presentation:
operator
Foreign Ladies and gentlemen, good day and welcome to CG Power Q3FY26 earnings conference call hosted by IFL Capital. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference has been recorded. I now hand the conference over to Ms. Renu Bed Pagalia from IIFL Capital. Thank you. And over to you ma’. Am.
Renu Baid Pugalia — Analyst
Thank you, Shubham. Very good afternoon everyone. On behalf of IFL, I’d like to invite the management of CG Power Industrial Solutions to discuss the three QFY26 results from the management team. Today we have with us Mr. Amar Kaul, Managing Director, Mr. Sushil Todi, Chief Financial Officer, Mr. Murray Nel, EVP drives in automation and international motors business Mr. Gaurav Makhija, Vice President, SwitchGears and APD Business Mr. Ajay Jain, Vice President Transformer Business Mr. Dhananjay Bapat, Vice President, Railway Business Mr. Jatinder Kaul, EVP Motors Business and Mr. Sriram Randarajan, EVP Head, Consumer Products Business. I now hand the call to Mr.
Amar Kaul for his opening comments after which we can start for Q and A. Thank you. And over to you Amar.
Amar Kaul — Managing Director and Chief Executive Officer
Thank you. Thanks Renu and team. Good afternoon everyone and welcome to the CG Earnings call. Starting with a summary of results. I’m very pleased to share with you all that we have delivered outstanding set of numbers for the quarter and the nine month ended December 31st, 2025. Reflecting operating discipline and strategic focus using our CGH edge as a tool, this is yet another quarterly performance with all time high standalone revenue and PBT after accounting for exceptional items. Our quarter three sales grew by 22% year over year and PBT before EI grew by 35% year over year and we have achieved 148 basis points margin expansion in PVT during quarter three financial year 26.
Further the orders remain robust with backlog strengthening further to 66% year over year to 14,859 crores reflecting sustained demand across all the businesses. Now going deeper into Q3 standalone performance. Aggregate sales for the quarter were higher at 2,909 crores recording a growth of 22% year over year and PBT was higher at the growth of with a growth of 35% at 454 crores which is 15.6% of sales as against the 38 crores in Q3 previous year and exceptional items include incremental impact due to introduction of new labor code effective 21st of November 25th. Return on capital employed for the quarter was 23% and the order intake for the quarter was 4096 crores which is about 13% growth year over year and unexecuted order backlog as of 31st December was 14,859 crores which is 66% up.
Now if we go deeper into each of the segments starting with industrials, while we saw steady sales growth with the margin impact coming due to commodity cost headwinds, aggregate sales for the quarter was at 158485 crores which is 8% year over year and a healthy growth across motors and railway business. PBIT was at 149 crores which is 9.4% of sales as against 184 which was 12.5% of the sales in quarter three last year. Margin change is driven by lower price realization and product mix changes in the railway segment as well as lower gross margin in motors due to significant commodity inflation that could not be passed on entirely to the market and this adverse movement was partially offset through the cost optimization, operational productivity and disciplined pricing and the business will continue to focus on margin improvement through cost optimization initiatives.
Pricing and improving Our product mix order intake for the quarter was 2050 which is 9% increase and the unaggregated order backlog as of 31st December continues to be sequentially better at 3569 crores which is 20% year over year. Now if we go deeper into the power system it has shown continued growth trajectory with further margin expansion supported by healthy underlying market and execution discipline. Aggregate sales for the quarter was at 1326 crores with a sharp rise of 44% year over year supported by robust execution discipline. Pbit was at 283 crores which is 21.4% of sales as again 17.6% of sales in the previous year.
Same quarter 378 basis points margin expansion driven by improved price realization reflecting robust demand trend and advanced operating leverage and order intake for the quarter was 2046 which is 16% growth year over year and unexpected order backlog as of 31st December was 11,289 crores which is 89% higher year over year providing multi quarter visibility. With this we conclude deep dive into our standalone performance and I now move to consolidated performance and the Consolidated results include the performance of our operating subsidiaries in Sweden, Germany, Netherlands which is drive in automation as well as CG Adhesive Products, CG Semi Private Ltd.
GGTronics and X0 Semiconductor Group that is a non operating subsidiaries. Aggregate sales for the quarter was 3175 crores at a growth of 26% year over year. PBT before extraordinary income was 25% higher at 420 crores which is 13.2% of sales for the quarter as a gain of 335 crores which is 13.3% of the sales margin gain is driven by strong standalone performance were offset by continued investment in the talent pool for semiconductor business and deferred revenue in x0 on account of holiday related timing of customer activity, Total semiconductor segment impact of 41 crores which is 130130 basis points return on capital employed annualized for the quarter was 21% and the order intake for the quarter was 4372 crores and the unexecuted order backlog is 31st December was 62% up year over year at 15,753 crores.
Finally, I would like to share about the major order win achieved earlier this month. CG secured one large order of 900 crores which was about $99 million of power transformer export order from Tallgrass in US it’s a large scale data center project in the United States and this order was received on 16th of January as the single largest order ever in the history of CG Power and this is a direct export to us for supply of power transformers. Under this contract CG will supply power transformers specifically engineered to meet the stringent reliability, efficiency and uptime requirements of hyperscale data center applications and this order will be executed over a delivery period of 12 to 20 months.
With this I’ll conclude my opening remarks. Unaudited financial statements with detailed notes are available as part of stock exchange filing and on our company website. Thank you for listening in and back to you. Renu for Q and A. Shubham, we. Can start Q and A.
Questions and Answers:
operator
Okay ma’, am. Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press Star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Ravi Swaminathan from Evan Duspa, please go ahead.
Unidentified Participant
Hi sir, good afternoon. Thanks a lot for taking my question and congrats on a good set of numbers. My first question is with respect to the order intake for the power system segment. So it has seen 16% growth. It’s a healthy number. But in the previous quarters we had seen significantly higher end of growth in the order inflow momentum. So just wanted to check with you, are there, are you seeing any signs of at the margin slowness in the ordering momentum in the power system segment especially related to the domestic renewable category.
Amar Kaul
Thanks. Thanks Ravi for the question, see it’s a quarter to quarter variation will always happen. So we have, we are not seeing any decline or slowdown in the pipeline of the orders that we have. So I think it continues to be as strong as it has been and growing as well.
Unidentified Participant
Understood sir. Secondly on the motors piece, if you could call out on the boardwater piece, the volume growth in the LT and HT motor so we had seen a revenue growth of around 8, 9%. How much would have been contributed by price increases and how much would have been contributed by LT HD motor volume growth and are you seeing recovery in the demand for LT motors and how is the price increase holding up?
Amar Kaul
Yeah, so couple of answers to, you know, multiple questions that you asked. So on the market size, yes there’s definitely an improvement versus the last few quarters that I have been talking about where it was negative. If you look at the data it has crossed the reach of being flat or a little better than that. But I think the good news as we shared is if you are getting 8% up, which means you are either eating from the market share or putting across the value proposition in front of the customers. So yes, it’s a combination of the price increase that we did, the realization has been fairly good.
We are satisfied with that. Of course it could not completely cover the increase in the commodities but yes, we keep working on that. And second is also, you know, if you look at a little stress on DBT is also, you know, we are working aggressively on the i2V piece which is innovative value. So that activity is also happening in parallel. So both these should be help us to come out of these difficult situations. So to your question, answer is yes, a combination of volume as well as the top line from the pricing.
Unidentified Participant
Understood. And with respect to the commodity price increase and currency depreciation, how how much more price increases are required say from the fourth quarter onwards and how is it likely to kind of pan out for both the Power and industrial segment. So how does it work in the power segment? Fresh orders are benchmarked to the current commodity prices and passed on to end customers. Is it the way of understanding and with respect to the industrial segment, also with respect to motors, how much more price increase is needed for both LT and HD motors?
Amar Kaul
See, price increase, you know, the thumb rule for the industry is very clear. You know, any inflation has to be passed on to the customer. So that’s the way it happens. So if commodity still doesn’t behave well, obviously there’ll be forthcoming price increases coming in the market. That’s typical to the industrial business that we are in. But if you go to the power, most of the business we have the PVC clauses, which is price variation clause. So any change the commodity that happens, you know, we get the compensatory amount on that. So that doesn’t amount to change in the pricing.
But yes, that gets compensated, which is a typical industry factors. Okay.
Unidentified Participant
And the price variation clause.
operator
Sorry to interrupt. Mr. Ravi, we request you to return to the question queue for the follow up questions.
Unidentified Participant
Sure.
operator
Thank you. Ladies and gentlemen, a request to all participants. Please restrict your questions to two per participants. For more questions, please rejoin the queue. The next question comes from the line of Ankur Sharma from HDFC Life. Please go ahead.
Ankur Sharma
Yeah, hi, good afternoon. Thanks for your time. Two questions on the power segment. First, you know, obviously there have been some media reports saying that the government could potentially allow Chinese players to bid for psu, you know, tenders. So just your thoughts on this? You know, what are you hearing when you interact with the ministry and you know, are you seeing anything in that direction? Is my first question.
Amar Kaul
So yes, a lot, lot is going on on that direction and as we interact with the ministries or with, with the utility companies and the customers. So honestly as we are not really worried about that, even if Chinese players come in, important is level playing field. Like I’m a big fan of saying that with the level playing field we have to be operationally efficient and then we can compete with anybody, you know, whether it’s the Chinese players or Japanese or Indian players. Yes, we have to be competitive so that we’ll continue to do. But I think important thing is having that level playing field which I think as of today what we see, I don’t see a concern on that at all.
Ankur Sharma
I mean, can you just elaborate a little more?
Amar Kaul
When you say level playing field, you. Mean that they need to come and set up shop in India? Is that what you mean? That in terms of a blanket import. That’s a level playing field to me. I’m saying level playing field means that you don’t get any special benefit or special privileges or special incentives by the respective governments. Then we cannot. Then it will be a problem for the industry, not for us only. Which I don’t get that feeler that that advantage people will have.
Ankur Sharma
Okay, so. So you do expect that there could be some relaxation. But as long as there’s a level playing field is what you would expect to see. Is that how we should understand what you’re trying to tell us?
Amar Kaul
That the government has to decide whether they allow Chinese companies or not? We don’t control that. I’m saying even if it comes faces our conversation with industries, that’s the only thing we have crossed. Let it be a level thing. So we control our destiny by being operationally efficient. That’s all I would say.
Ankur Sharma
Okay, okay. Fair. And just the second one on this. Large transformer order which you got for this data center in the US if you could just talk about, you know, what more could be there in the pipeline. How much of an opportunity does it really open for a company like CG in terms of export orders for data centers?
Amar Kaul
Data center, you know this renewable data center is one of the key vertical for us. So it’s not that you know this order has come by fluke or you know, it just suddenly came up. You know we have been working on this for last two years religiously on these key account management, the vertical focus of the industry. And that has started, you know, giving us some of these results. So we are, we are of firm opinion that you know de risking strategy of being domestically strong as well as keep, you know, divesting a bit on the outside India as well.
So that there’s a focus on both the sides. So we don’t want to put all the eggs in one bucket.
Ankur Sharma
Okay, thank you.
operator
Thank you. The next question comes from the line of Mahesh Bhendari from LIC Mutual fund. Please go ahead.
Unidentified Participant
Hi sir. Thank you so much for the opportunity. I just wanted to understand sir, outlook for domestic power transmission business. If we talk about three to five years, do you see sustained order pipeline because government has published recently new nap where there is high amount of capex in power is going to take place. So do you think we are in a phase where growth could be extended well below five years? Well above five years.
Amar Kaul
Yes. See I think if you have noticed in last couple of quarters, even the earnings call, I have always been bullish about it. Last year also I said next five years up to 29. I don’t see a concern that this sector will not grow unless something catastrophic happens. Then obviously that’s out of control of everybody. Otherwise, the way expansion plans are, the way government is expanding infrastructure, power generation. So I don’t see anything slowing down in up to 2029. And of course it can go beyond that as well. But it’s a combination of publicly available data as well as what we see in the market.
Unidentified Participant
Sure, sure. Thank you. Thank you so much, sir.
operator
Thank you. The next question comes from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Good afternoon, sir, and thanks for the opportunity. My first question is on the power system. Is it fair to say that the price variation clause is present in almost the entire order book?
Amar Kaul
Yes, almost.
Mohit Kumar
Understood. My second question on the. Of course you have one. A very large order of export from us. Can you please confirm this order was not part of the order Inflow announced for Q3, is that right?
Amar Kaul
No, this is come. I think you see the date is 16th of January. This is not added in last year. This is for the current quarter.
Mohit Kumar
Thank you, sir. That’s my question. Thank you.
Amar Kaul
Okay, thank you.
operator
Thank you. The next question comes from the line of Atul Tiwari from JP Morgan. Please go ahead.
Atul Tiwari
Yes, thank you. On the power systems margins, which have obviously expanded quite a bit this quarter. Again, my question is for the new orders that you are getting for the power systems in the domestic market, are the margins similar or they are even higher than what you are reporting today?
Amar Kaul
I would say with the backlog that we have, future is bright.
Atul Tiwari
Okay, so roughly similar margins that you are reporting today. I mean, we should be able to hold on to these margins. Is that a fair conclusion?
Amar Kaul
Yeah, see, I know we will tell you exactly, you know, what my margins are. But there’s a very disciplined process of order intake to the backlog margin. How dividers stand to each of the business leaders for each of the businesses are on top of it. The quality of incoming orders at what quality we are getting in. So I think there’s a very disciplined process in place. So I think we are very much in control of that.
Atul Tiwari
Okay. And sir, the second question is on the, you know, OSAT business. So I mean, could you give some update on, you know, what is the kind of ramp up we are seeing in the facility that we commissioned a few months ago ago and when is the next bigger facility likely to come online? You know, any, you know, updated color on that?
Amar Kaul
You mean for transformer or.
Atul Tiwari
No, for the OSAT business, the semiconductor business.
Amar Kaul
So osat, as you heard last time, the mini plant which we call M1 has already started commence its activity. I think next two quarters we should start sales out of that on a small scale and then it will keep graduating. I would say next two to three quarters you start seeing decent amount of sales coming. But it’s a small plant in any case. And the new plant, which is the bigger plant, M2 as they call it, that should be ready by end of December 2026. And so I would say Q4 of next financial year is when we start some activity.
Of course the lead time for customer approval and validation of these chips doesn’t take as much time as the mini plant takes. But yes, there will be some time. So I would say another one year or so it should be operational.
Atul Tiwari
And sir, in terms of yields etc that you are getting in the mini plant, will you be able to comment on that? What kind of yields etc we are getting? Is it in line with whatever you have anticipated?
Amar Kaul
I mean it’s much better than what we anticipated because the business case was much lower. But I think today we are operating at about 98, 99% kind of yield. So which is a good situation.
Atul Tiwari
Okay, thank you. Thank you.
operator
Thank you. The next question comes from the line of Eskapoor from Jefferies. Please go ahead.
Unidentified Participant
Hi sir. Am I audible?
operator
Yes sir.
Unidentified Participant
Yeah, thanks. Just wanted to ask you again on the potential re entry of Chinese players. So you know, assuming as you said there is a level playing field but they do come back into the market, do you see pressure on potential pressure coming back on pricing and as a result any pressure on your margins going forward in case they do come back and it is a level playing field?
Amar Kaul
We have not seen anything like that till now for sure.
Unidentified Participant
No, I mean in case they do start coming back in a year from now, could there be certain pressure on pricing? That’s just directionally if you could comment on that.
Amar Kaul
That’s why I said the answer is very simple. You know, nobody can predict what will happen after one year. Important is how do we flex our muscles in the gym to be prepared for the worst case scenario after a year. I think that’s what we are focusing on. To me that’s a leading indicator. How do we become more operationally efficient and how do we keep expanding not only in India, outside India as well. So with that focus I think that that’s the only way. To me that’s a leading indicator. So that’s where we’re focusing on.
Unidentified Participant
Sure and just to carry on with this is it, you know, are there any segments where they’re more like the Chinese players are more likely to come in? You know, maybe in the extra high voltage or high voltage. Could you. Do you have any visibility or clarity on that as to which segments they’re more likely to enter and where we might potentially see more participation from them?
Amar Kaul
Even if I think your worry is on the Chinese players. So now what are we talking about? I mean if you can count on tips, you know, probably one company that will be in India and they are sold out for next year years. So where is the worry? So even if they start expanding today, you know to get transformer manufacturing up and running is 24 to 36 months. So you’re talking about two years plus another two years or four years. And we talk after four years. But that doesn’t stop us from being, you know, it should not make us complacent.
Important for us is how do we keep flexing our muscles to be prepared for the worst whatever happens.
Unidentified Participant
Understood sir. Thank you so much.
Amar Kaul
Thank you.
operator
Thank you. The next question comes from the line of Aditya Mongoya from Kotak Institutional Equities. Please go ahead.
Aditya Mongia
Everyone and thank you for the opportunity. My first question was more on the outside business. I wanted to check. This is our discussion with customers. How much of our full capacity already would have a customer obviously pending clearances but already would having would be having a customer today.
Amar Kaul
It’S a percentage I think about one third of the capacity is our the collaboration with Renesauce so they have that’s part of agreement so they will pick it up and a lot of discussion going on and with multiple agencies and I think longest lead time we see is auto industry because it’s not easy to get those approvals so that takes a bit of time. So it’s a combination of multiple types of customers that we have right now going on.
Aditya Mongia
And just a clarification over here you put a segmental loss when the company looks a segmental loss in the semiconductor segment is it all linked to the design business or are some cost linked to OSAT also getting expensed out, if you can provide a breaker would be useful for us to understand the underlying design business better.
Amar Kaul
I think both are separate because design is the exito which I think the board meeting already happened. So I’m not worried about Exero because that’s already we committed about $64 million we’ll do for the year. How much? 50, 55, 56 million I think should do that and I’m very sure with that she’ll be able to break even so we don’t have to really fund that. CG70 is like a startup, so I think it’s going to take some time till you see that it starts making money. So it’s investment for the future. So you cannot expect that from day one it will start making money and we are prepared for that.
Aditya Mongia
Understood. The second question I had and the final one was on the power business, as in I recall your comment of a fairly large part of the incremental capacity that you add up being focused on exports. Could you give us a sense of what all milestones should one be tracking for gauging the progress over here on the exports side? Essentially countries that would be focusing on the kind of clearances that are required whether they already there or not there. Just trying to get a sense of how fast can be the scale up in exports on the power side.
That’s my final question. Thank you. You win. Exports for power sector, right?
Amar Kaul
Yeah. Exports of power sector. No, I think exports for power has already started picking up. You know, if I look at my. I’ll not throw the numbers right now but I can give you some reference of the order pipeline for exports has gone up by more than 50% in the last nine months. So April till December last year to April till December this year we have more than 50% on the exports bookings, which is orders. So that itself, you know, shows you that the wheel has started moving in that direction.
Aditya Mongia
Understood. I’ll get back into the queue for more questions. Thank you.
operator
Thank you. I request to all participants, please restrict your questions to two per participants. For more questions please rejoin the queue. The next question comes from the line of Saif Gujar from ICICI Prudential emc. Please go ahead.
Saif Sohrab Gujar
Yeah, thanks for the opportunity. My first question is on the coverage part. So on the order with GJTronics from CLW which got cancelled due to end of the 12 month delivery period, can you highlight where are you on the product development part and how do you expect say future orders from these? Because we saw some other players receive fresh orders in the recent tenders. Your thoughts on.
Amar Kaul
Can you repeat your question exactly on Kavach.
Saif Sohrab Gujar
Sorry, I’m audible. Yeah, on the coverage part. So with the order, with the first order from CLW which got cancelled I think because of the 12 months period getting over, where are we on the product development part and do we expect future orders to replace this existing order? Because we have seen some other players get orders From CAW as a replacement after the tenders got lapsed for them?
Amar Kaul
Yeah, no, I think the team is progressing. Of course there was a delay in initial approval because we are also doing it for the first time. But I think approval process is almost reached the end. The passenger trials are about to start now. It should take another four to five weeks. So I’m expecting that in this quarter we should be done with the approvals and commence the supplies as well. And there’s already a bigger order which we haven’t shortlisted. So final order should be coming very soon.
Saif Sohrab Gujar
Sure. And the second question on the data center, 9 billion order on the power systems. The exchange filing had mentioned 12 to 20 minutes of execution period. So just to understand, because this is beyond 12 months of delivery, is it more to do with the capacities which we have available or there is a product development phase involved? So this is for us maybe a different type of products which would be involved. And these are what? Kvcas transformers? Yeah.
Amar Kaul
See these are, these are, you know, none of these transformers are standard transformers. They’re customized to the customer. So design is a critical piece of each of these power transformers. So. And that’s also what we discuss and negotiate basically the customer pool as well. So that is the, that’s the range that we have. And Ajay, you can talk about the capacity or power. You know what, what KVDs are. Yes, these are 330kV transformers.
Saif Sohrab Gujar
Okay. And so beyond 12 months execution is more to do with the product development also because they’re customized transaction.
Amar Kaul
Yeah, it’s a combination, you know, each of these power transformers are combination of one.
Saif Sohrab Gujar
Okay, thanks.
operator
Thank you. The next question comes from the line of Anupam Goswami from SERD Live. Please go ahead.
Anupam Goswami
Good afternoon, sir. So my first question on the competition, we see that the transformer industry, you as well as some other players are putting their capacities and most of them are coming in the next one or two years. How do we see the competition going forward vis a vis the demand? And do we see any pricing pressure or any signs which is coming right now? Are you seeing? That is my first.
Amar Kaul
I think Anubam, this is, this is, you know, if you look at the forecasted data up to 2930, also the capacity being put in by all the players in this industry, including CG and the demand, even if you compare only with India, India in 2029, this still will be a shortfall. So that answers the question that you’re asking for. And this doesn’t even add to the capacity gap that we have outside India as well. So I don’t see any concern on that. In spite of all the companies putting in there, there’s enough room for everybody to be playing in.
Anupam Goswami
Great. Sir, what is the capacity utilization and how do we see the ramp up of the news setup going forward?
Amar Kaul
So wrap up is going on. Your question is specific transformers, right?
Anupam Goswami
Yes.
Amar Kaul
Yeah. So I think capacity is going on pretty well. I think just three quarters back you were at 20,000 MBA. Today we are already 40,000 MBA. And in next one quarter or so we’ll be 65,000 MBA. I think that’s the kind of jump we are making. And hopefully next 2 to 3/4 we’ll be adding another 10 to 20,000 mvm more into that from the new facility. So once we get better visibility of that, we’ll of course be announcing.
Anupam Goswami
So as a result, given the order book, capacity utilization to be also be pretty high and ramp up soon after the capacities are in place.
Amar Kaul
Yes.
Anupam Goswami
Okay. Great sir, I’ll join the kitty. Thank you.
Amar Kaul
Thank you.
operator
Thank you. The next question comes from the line of Subadip Mitra from Nuvama. Please go ahead. Yes sir. You may proceed with your question. As there is no response from the current participants we will move towards the next question. The next question comes from the line of Sumit Kishore from Access Capital. Please go ahead.
Sumit Kishore
Thanks for the opportunity. I have two questions. The first question is in the industrial systems business, the 310 basis point odd year on year drop in PBIT margin. How much of this is sticky or how much of this is rather temporary factors. You have identified two reasons. One is the price lower price realization and product mix changes in the railway segment. If you could speak about that separately. As well as the impact due to the commodity inflation in industrial system. So like you said, power systems everything has a price variation clause. If you could also explain how the impact in industrial systems on commodity would play out.
That’s my first question. Thanks.
Amar Kaul
Sure. I think power is fairly simple with the PVC clause which is there. But in industrial it’s a race against the commodity inflation that you have. But I think we are strengthening our speed of response. If you would look at last year, 3/4, 9 months, we increased our price by almost 17% including this month. So which will show us the impact in the forthcoming months for the realization. So we have been pretty aggressive on that. And the good news is that the market has been absorbing that price fairly well. Much better than our expectation. So we don’t have to really drop the prices.
So yes, it’s a catch up game right now. But yes, we’ll find a way to stay ahead of the curve to make sure we are compensating for this gap.
Sumit Kishore
And on railways, sir.
Atul Tiwari
Yeah, railways. I think there was a. I would say it will take a few more months to come back on track because there were a couple of issues in between. If you remember last quarter we had the supplies were stopped for some time and then it started and there was some service issue which got resolved. So there were a bit of leakage on that. For our US exports we are going a bit slow, although the number is not very substantial there. But with the duty structure we are kind of slowed down on those areas. So that also is a bit of impact versus what we had considered for our profitability as well.
But I would say each one of these are momentary to compensate for. And now we are the new leader. Also, whatever leadership changes were required, we are incorporated. So Dhananjay is our new leader for railways and he’s really looking at, looking at this business from the fresh pair of eyes. So more to come.
Sumit Kishore
Got it. My second question is on exports. So basically in the nine month period so far this fiscal, how much have exports been as a percentage of your sales or how have exports grown on a year on year basis versus your overall sales growth? And like you mentioned, your power systems prospect pipeline is up almost 50% year on year. What is the situation on the industrial systems and railway side as well?
Amar Kaul
No, the number that I gave you is the overall number industrial. So it’s the overall number. So the action is across the segments. So that’s why I gave you the overall number.
Sumit Kishore
Sure. And export revenue is how much for the year so far?
Amar Kaul
You know, first you have to get the order so that coming. So that is under execution. So as we keep going forward you will see the improvement in revenue as well.
Sumit Kishore
Sure. Thank you. And Vishwan.
operator
Thank you. The next question comes from the line of Sameer Thakur from Ambit Capital. Please go ahead.
Sameer Thakur
Hi. Thanks. So the order for the data centers, I just want to check whether we have enough bandwidth to deliver from the existing facilities or with the combination of existing and new facilities.
Amar Kaul
This can be done in the existing facilities.
Sameer Thakur
Okay. Okay, fine. Just on the price variation clauses as well. So on the commodities, as you said, we can pass on the prices. Is there any cap on that or you can pass on the entire inflation for commodities?
Amar Kaul
I don’t think there’s. Not that I’m aware of if there’s any cap on that. But I think it’s the actual. So yeah, it’s all actual. I don’t think there’s any gap on that.
Sameer Thakur
Okay, okay. That was also my thing. Thank you.
Amar Kaul
Thank you.
operator
Thank you. The next question comes from the line of Umesh Raut from Nomura. Please go ahead.
Umesh Raut
Yeah. Hi sir. Thank you so much for this opportunity. My first question is on power system side. If I look at revenues on standalone basis, those are up by about 66% on quarter. On quarter. Despite I think commencement of additional 17,000 MPa capacity for lean third quarter. So is it fair to assume that order backlog conversion into execution is slightly slower because of longer timelines of orders with respect to transformers?
Amar Kaul
Not really. I think if you look at the capacity expansion, the speed we are doing it, I don’t think I heard about anybody else doing it. As I said, Just one year back we were 17,000 MBA capacity. Today we are already at 40, 45,000 and next in a quarter will be 65,000. So we are progressing much faster. But that’s a good pressure to have because the order pipeline is stronger and that put more pressure on us and which is a good nice pressure. So it’s working in parallel both in order inflow versus the capacity expansion.
Umesh Raut
Got it. And one clarification, I think last, during last calls I think you have mentioned about 85,000 MVA kind of a capacity by about FY28. And now you are saying I think within next couple of quarters we are anticipating 6%. So are there any plans of preponement of Capex with respect to transformers?
Amar Kaul
Yeah, that’s, that’s why I said, you know, I think as we get more clarity. But yes, I say I’m looking at a minimum of one year ahead of the time. What we planned for what the board had approved for up to 2028. I’m sure that our team should be able to do it at least one year before. But yet the moment we have more clarity we keep sharing with you as well as with the stock.
Umesh Raut
Understood. Second question is on the export market if you can help us with the competition that you observe in case of the orders, especially the one which you won in case of data center market in us. So how was competition like and is it one off order or it is more of a collaboration with prospective customer and similarly I think what all other geographies you are targeting with the next.
Amar Kaul
So I’ll only share what I’m allowed to share. This 900 crore order that you have and I gave a statement that our Exports orders are more than 50% up across all the segments. And that does not include these nine records. That’s over and above because that’s for current quarter. All right. So it’s not one odd case or a fluke that has happened. You know it’s a hard work that the leaders along with their teams have been doing over the past two years and now reaching that stage of reap the benefits of it. And I think what we have seen at high level and it’s not only that we are dependent on us so it’s across different geographies.
It’s a very clear laid out go to market strategy with very few markets. It’s not all over the place. We are not getting into all over the place which countries that obviously I am not able to share with you at this point of time. But yes, what we have seen is we are selling basis our speed, the technology and the reliability of the product that we have. I think these are the three things that we have seen that customers are willing to partner with us.
Umesh Raut
Got it. And last question, if you can help us with profitability of these export orders, I mean tentatively how much higher margin whether these can or these orders can give you and in terms of price escalation clause as well, I think if that is incorporated in export orders or not.
Amar Kaul
Yes. On the second question. Yes I think we have secured CG’s interest for any of these export orders. It’s part of our contract. And to the first question I would say we just started the game here. So as we keep executing and sales will come in, you will see the margins and the profitability in the pnl.
Umesh Raut
Got it sir. Thank you so much. All the very best.
Amar Kaul
Thank you.
operator
Thank you. I request to all participants please restrict your question to two per participants. The next question comes from the line of Harshit Patel from Aquarius Security. Please go ahead.
Harshit Patel
Thank you very much for the opportunity. Sir, could you give us an update on the EV motors development and testing? Is our product now approved with the three wheeler OEM where it was in the testing phase. Also a status of the motor and controller for the truck that we were developing.
Amar Kaul
You mean EV motors, right?
Harshit Patel
Yes sir.
Amar Kaul
Okay. Yeah, so. So EV motors and controller that is, that is still in progress. And for the trucks that discussion is still going on because there’s some transport technology that we are working on and as we get close to that we’ll of course be announcing it.
Harshit Patel
Secondly, you had announced a capex of about 750 crores towards the switchgears business in the previous quarter, what would be the potential revenues from this expansion at the full utilization. Also, when do we plan to complete this particular capex?
Amar Kaul
Your question was on the switchgear expansion, right?
Harshit Patel
Yes, sir. The last quarter that you have, you had announced about 750 kilometers.
Amar Kaul
That’s right. So I think we have taken a step in between. I think after today’s board meeting we also took the role for brown field in between. Because a new plant will take more than a year to come up. And we can see very strong demand not only in India but outside India as well. So I think next couple of months we’ll be ready with our brownfield which is close to our existing facility. That will come up. And I think that itself should give us close to 1000 crores. 400 crores. Yeah. So that will give us about 400 crores incremental revenue or sales.
Harshit Patel
Thank you very much. I’ll come back.
Amar Kaul
Thank you.
operator
Thank you. The last question for the day comes from the line of Subramaniam Yadav from SBL Life Insurance. Please go ahead.
Subramaniam Yadav
Thank you very much. Sir, what would be our correct risk on our product to eu and how do we benefit out of this fta? Sir, just wanted to understand what is our current tariff on our products? Maybe.
Amar Kaul
Sorry sir, not tariff on our product. Age of now to us that is based on the. You know, to the Mumbai port. And the tariff is owned by the country.
Subramaniam Yadav
Sir, I’m talking about eu, not us. No, you. You just treated agreement is signed today only, right?
Amar Kaul
Yeah.
Subramaniam Yadav
But currently we pay some tariff on our products.
Amar Kaul
No. No.
Subramaniam Yadav
Okay. So not much benefit out of these three.
Amar Kaul
Yes.
Subramaniam Yadav
Okay, sir. Thank you, sir.
operator
Yeah. Thank you. Ladies and gentlemen. That was the last question for the day. And I’ll hand the conference over to Mr. Renu Vedpagalia for closing comments. Thank you. And over to you ma’. Am.
Renu Baid Pugalia
Thank you. On behalf of IFL Capital. Like to thank all participants in the management for participating. Amar, any closing comments that you would like to make. Thank you. Thanks. And thanks everybody for joining us. Appreciate all the good questions. So stay tuned with us for the exciting times ahead. I love this interaction every quarter. Thank you. Thank you.
operator
Thank you. On behalf of IFL Capital. That concludes this conference. Thank you for joining us. And you may now disconnect your line. Thank you.