CG Power and Industrial Solutions Ltd (NSE: CROMPGREAV) Q4 2026 Earnings Call dated May. 06, 2026
Corporate Participants:
Renu Baid Pugalia — Senior Vice President
Amar Kaul — Managing Director and Chief Executive Officer
Susheel Todi — Chief Financial Officer
Gaurav Makhija — Vice President of Switchgears and EPD Business
Ajay Jain — Vice President of Transformer Business
Dhananjay Bapat — Vice President of Railway Business
Analysts:
Ankur Sharma — Analyst
Mohit Kumar — Analyst
Harshit Patel — Analyst
Sumit Kishore — Analyst
Atul Tiwari — Analyst
Amit Mahawar — Analyst
Aditya Mongia — Analyst
Rahul Gajare — Analyst
Girish Achhipalia — Analyst
Parikshit Kandpal — Analyst
Shirom Kapur — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the CG Power Q4FY26 earnings call hosted by IIFL Capital Services. 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 or your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Renu Bed, Senior Vice President Research of IIFL Capital. Thank you. And over to you.
Renu Baid Pugalia — Senior Vice President
Thank you Ritesh. Very good evening everyone. On behalf of IFL Capital like to invite the senior leadership team of VG Power and Industrial Solutions to discuss the fourth quarter FY26 earnings performance from the management team. We have with us today Mr. Amar Kaul, Managing Director and CEO Mrs. Sushri Tori, Chief Financial Officer Mr. Mare Nel, EVP Drives and Automation and International Motors Business Mr. Gaurav Makhija, Vice President Fijiyas and APD Business Mr. Ajay Jain, Vice President. Transformer Business Mr. Dhananjay Bapat, Vice President, Railway Business and Mr. Jitender Kaun, EVP Motors Business India Subcontinent. I now like to hand over the call to Mr. Amar for his opening comments and explain us how do we deliver such stellar performance in the business, especially Power system. Surprising yet again. Thank you and over to you Amar. Amar sir, please go ahead.
Amar Kaul — Managing Director and Chief Executive Officer
Thanks team. Good afternoon everyone and welcome to CG Earnings Call. I’m happy to share with you all that CG had another strong set of results for the quarter and year ended 31st March 26th. Reflecting our continued momentum powered by disciplined execution and strategic focus. This is a record fiscal year performance for CG in recent times. Very strong. Q4 caps off a record fiscal year with highest ever standalone revenue order book and PBT. After accounting for exceptional items, our Q4 26 sales grew by 22% year over year, PBT at 43% year over year with 260 basis points margin expansion delivering a strong finish to a record year. And for the full year our sales grew by 21% PBT at 34% year over year with 143 basis points margin expansion and again making it its strongest standalone fiscal performance yet.
Further, the order flow remained pretty strong during the quarter with penetration into several new and emerging verticals and markets, taking the order backlog up 59% year over year to 15,719 crores and offering a strong revenue visibility for financial year 27. Now as I go deeper into standalone performance starting with Q4, the aggregate sales for the quarter was high at 3,129 crores recording 22%. As mentioned earlier, profit after tax was higher at a growth of 49% at 412 crores which is 13.2% of sales as against 275 crores which was 10.7% of sales in Q4 financial year 25. Return on capital employed for the quarter was at 27% and order intake for the quarter was 4505 crore, Which is 23% growth year over year and unexecuted backlog at the closure of financial year 26 was at 15,719 crores which is 59% up year over year.
Going further deep into standalone performance for financial year 26 the sales was at 11,331 crores with a growth of 21%. Profit after tax was at 39% at 1,352 crores which is 11.9% of sales as against 974 crores which was 10.4% of sales in financial year 25. Return on capital employed for the year was 22%. Order intake for the year was 17,574 crores which is 30% growth year over year and unexecuted order backlog as of close of the financial year was at 15,719 crores which is 59% up versus the last year. Now moving to the sector wise or the segment wise performance starting with industrial systems While performance for Q4 continued on a sequential upward trajectory despite volatility and the rising commodity costs.
The aggregate sales for the quarter Q4 was at 1643 crores which is 5% up with robust double digit growth in the motors which for the last few quarters you must be hearing me saying that we have stabilized a lot and the team is doing a fantastic job to stabilize that so that has started showing the results there. Pbit was at 157 crores 9.6% of sales as against 176 crores 11.2% of the sales in Q4 25 margin deviation is due to the mix change and the competitive pricing in railways business as well as higher MSR for motors due to commodity impact. But the disciplined pricing along with focused efforts on efficiency gains via cost and productivity programs over the last few quarters help partially mitigate this adverse impact.
Business continues to prioritize margin expansion through ongoing cost initiatives, structural improvements, pricing and the mix shaping. We have improved margins by 20 basis points sequentially and the order intake for the quarter was 1478 crores and the unexecuted order backlog towards the closure of the financial year was 3,075 crores. Healthy growth in orders and order backlog in motor and price also was a contribution to this and when we come to the full year performance the sales for the year was 6197 crores which is 60. Up with a healthy growth primarily in motors and pbit was at 613 crores which is 9.9% of the sales CAS again 707 crores 12.1% in the previous year and the margin deviation that you see here is due to the mix change in the competitive pricing in railways business and a bit of impact of we on our own slowing down because of the tariff impact from some countries that we had.
So that was a conscious effort then disciplined pricing along with focus efforts on efficiency gain via cost and productivity program over the last few quarters helped partially to mitigate the adverse impact and business continues to prioritize the margin expansion through ongoing initiatives and structural improvements in pricing and mix shipping. The order intake for the year was 6365 crores and the unexecuted order backlog as of closure of the year was 3,075 crores and there was healthy growth in order and backlog. Now if I go to the other segment which is the power systems, the performance continued upwards trajectory with the sustained margins and continues to be in Q4 underscoring the robust market dynamics with disciplined execution.
The aggregate sales for the quarter was at 1,487 crores with a jump of 50% year over year reflecting strong execution discipline. PVIT was at 354 crores at 23.8% of sales as against 208 crores which was at 21% of sales in Q4 25 and significant 287 basis points margin expansion underpinned by efficient order execution and strong operating discipline. Order intake for the quarter was 3027 crores which is 72% growth year over year and unexecuted backlog as on 31st of March 26th was 12,644 crores 91% up year over year offering revenue visibility spanning several future quarters. When we consider full year performance for power, the aggregate sales was higher at 5138 crores with the rise of 43 reflecting its strong execution discipline.
PBIT was at 1123 crores 21.9% as against 668 which was at 19% of sales in financial year 25 which again comes to 281 basis points of margin expansion and underpinned by the efficient order execution and strong operating leverage. Order intake for the year was at 11,210 crores 69% growth year over year. And unexecuted backlog as on 31st March was 12,644 crores which is 91% up year over year offering revenue visibility spanning several future quarters. With this we conclude deep dive into a standalone performance and I will now move to the consolidated performance and as you know consolidated results include the performance of our subsidiaries in Sweden, Germany, Netherlands, CG Edases product and CGTronics, Exero and other non operating subsidiaries.
Starting with Q4 performance aggregate sales for the quarter were up at 3,442 crores at a growth of 25% year over year. Profit after tax was 32% higher at 362 crores which is 10.5% of sales for the quarter as against 274 which was 10% of the sales in Q4 last year. Margin gains are driven by strong performance were offset by continued investment in talent pool for semiconductor business and total semiconductor segment impact of 38 crores which is 110 basis points return on capital employed. Analyzed the what was the order intake? 5,335 crores and an aggregate as on 1st of March 26th was at 61% year over year at 17,100 and when we consider our full year consolidated performance aggregate sales for the year was 12,418 crores with a growth of 25%.
PAT was at 27% at 9.9% of sales for the year as against 973 crores which was 9.8% of sales in venture year 25. Margin gains are driven by strong standalone performance and were offset by continued investment of our talent pool as mentioned before and return on capital employed for the year was at 20%. Order intake for the year was 19,616 crores and unexecuted backlog as on 31st of March was 61% up at 17,107 crores. Now moving to the key events for the last financial year. As you would have seen we had announced that we have you know we back order for the supply and servicing of 765kV transformer packages from the large customer Power Grid Corporation.
You know that total order value was about 641 crores is the highest single order domestically received in the transformer business. In CG the order is expected to be completed between 18. To 36 months and also CG secured the single largest order of 244 crores for EHV business from techno for supply of packaging, transformer, circuit breakers, lightning arresters and combination and CG also launched successfully and completed QIP for equity shares and raised 3000 crores. The issue opened on 30th June and closed on 3rd of July. It was oversubscribed by CX and saw participation from both Indian and global marquee investors. CG Semi, a subsidiary of CG unveiled one of India’s first end to end OSAT facility in Sarand in Gujarat and with this launch of G1 facility, CGCEMI becomes one of the first fully served OSAT providers offering solutions across both traditional and advanced packaging technologies.
This marks a major step in strengthening India’s semiconductor capabilities and supporting the country’s goal of becoming self reliant while also serving global markets. The G1 facility will operate at a peak capacity of half a million units per day which we are trying to even increase that output over the next few months or quarters. We should be in that situation and G2 facility located about 3 km from G1 is under construction expected to be completed by end of 2026. Once operational, G2 will scale up to the capacity of approximately 14.5 million chips per day. Together the two facilities are projected to generate about 5,000 direct and indirect jobs in the coming years. Now CG Semi is also eligible for capital assistance as per the scheme for sett up OSAT facility launched in India Semiconductor mission under the Ministry of Electronics and Information Technology wide approval dated 8th March 2024.
The approval recovers the five year period from financial year 2425 to 2829 for a total project cost of 7584 crores with central government assistance of 3501 crore additional state government support equating to 40% of the central government assistance coming to about 1400 crores. The fiscal support agreement was signed on 1-17-2025 and the trust and retention account agreement was signed on September 15, 2025. The board of directors on 29 October 25 approved a greenfield expansion for switchgear business with an investment of 748 crores net of taxes. The expansion is proposed considering the expected increase in demand for media voltage and extra high voltage circuit breakers, instrument transformers, gas insulated switch gears, Ford domestic. Stake and also to the exports market.
Fiji secured about 900 crore worth of power transformer order which was a substantially large one. It’s for the data center in United States. The order was received on 16th of January 26th and is the largest single order received by CGE for supply of power transformers. And under this contract, CG will supply the transformers specifically engineered to meet the stringent reliability, efficiency and uptime requirements of hyperscale data center applications. This order will be executed for a delivery period of 12 to 20 months with the delivery terms of FAS Mumbai Port as the incoterms. The Board of directors of the company at its meeting held on 1-27-2026 considered and approved the payment of interim dividend of 1.3 per equity share. That is 65% of the face value of Indian Rupees 2 per share for financial year 2526. With this I conclude my opening remarks and audited financial statements with detailed notes are available as part of stock exchange filing and on our company website.
Thank you so much for listening in and over to you. Renu for Q and A.
Operator
Hello Renu ma’. Am.
Renu Baid Pugalia — Senior Vice President
Yeah, can you open the session for Q and A please?
Questions and Answers:
Operator
Thank you. Thank you very much. We’ll now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone phone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use hands while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question is from the line of Ankur Sharma from HDFC Live. Please go ahead.
Ankur Sharma
Yeah. Hi sir. Good afternoon. Thanks for the opportunity. I have three questions. First. You know it’s good to hear that. You know we finally seen double digit growth in motors. Just wanted to understand how much is volume growth and how much is price led. Also, given the current inflationary environment, how much more of price hikes would you intend to take in the motor side of the business?
Amar Kaul
Sure, Ankur, I think. Great question. So on the motor side I would say it was a combination of the price increase that we got from there from the customers and a combination, I would say about 50% to 50% of both and the volume hike as well. So the volume hike is almost in sync with the market growth that we are seeing. But also we didn’t let our. Pricing leakage also to happen from there.
Ankur Sharma
Okay. Okay. And how much more do you think you may have to take? I mean how much you know to cover the.
Amar Kaul
It purely depends on, you know because we keep a laser sharp eye on focus I on the commodity inflation the way it is happening because little tricky for motors or drive business versus some of the large long lead item because where you get the pvc. So we keep a little sharp focus on how it is going or the predictions on that. And basis that we take the decision case to case basis, maybe it’s not required. But what we are also honing our skills on is the pricing discipline. You know, how do we make sure that we are not having the leakage for. By giving additional discounts. So I think that’s another thing that we are working closely on.
Ankur Sharma
Okay, Fair. Okay. Our second question sir would be on the power product. The orders while it’s very, very strong given we got this 900 crore order for the data center. But if I exclude that and I look at the domestic orders, that’s up about 20% X of that data center order, 16% last quarter. Sequentially we are in that 2000 2,200 crore ballpark. So just trying to understand is this the most sustained kind of growth rate that we should be expecting in that 15, 20% ballpark as we head into next year obviously the base also starts catching up. Just your thoughts on the overall trajectory here on the domestic transformer power product system.
Amar Kaul
I think Ankur, if I had to give a short answer, the game has just started. So 900 crores is what we had to report because it was a substantial order that we have. But after that also the app is open and as we put our feet on the ground outside India as well, anything we touch it just opens up. So there’s so much of opportunity available for everybody. You just need to know how to encash on it. How to make sure that you execute with the right quality, right standards, right reliability. I think that’s what will be the differentiation, nothing else. And you should have the appetite on that. So. So I’m not going deeper whether it’s transformer or it’s switchgear. But I think overall for power we still see a huge demand all over the world.
Ankur Sharma
I understand. Exop India is what I was talking about. How would you see the Indian power product market shaping up as you had in the next couple of quarters?
Amar Kaul
Sure. That’s also growing at a very, very fast pace. In fact, as we are adding, if you see just one year back, we were at some 17,000 MVA capacity for transformer. Today we are almost to 65,000 MVA. I don’t think anybody has done that kind of increase. And still we feel as we beat the large customers or even the Government companies in the utility sector. What we keep hearing give us more, give us more. Nobody’s saying stop it. So I think it’s a good, it’s like Amrit Kal for power sector in India as well.
Ankur Sharma
And this one last one is on the balance sheet I see this item called other financial assets totaling almost 3000 crores in Q4. Can you just help us understand what is that?
Susheel Todi
This is that, you know the QIP money which has come up so it is parked into the different asset class.
Ankur Sharma
Thank you so much.
Operator
Thank you. A reminder to all the participants, please listen yourself to two questions. The next question is from the line of Mohit Kumar from ICICI Securities. Please go ahead.
Mohit Kumar
Yeah, good afternoon and thanks for the opportunity. My first question is can you help us with the GGTRONICS order inflow and how did the year panned out in terms of revenue EBITDA and how do you see the order outlook in the segment?
Amar Kaul
Yeah Mohit, so I think Ggtronics, if your question is specific to the order book I think it’s pretty strong right now. I think we should have the, we should have the, you know I think the order backlog should be the tune of close to thousand crores approximately. So right now, you know the second question might come for you know, when do we start executing? We are at the last leg of the accrual process which is the passenger trials which is already going on. So there are about as of today morning 12 trials have already been completed and so I think maybe another month, month and a half all these trials should be done. So then you start executing.
Mohit Kumar
How, what was the last year revenue? Epitan Pat, the number is available with you?
Amar Kaul
You mean for GGT or what?
Mohit Kumar
Digital?
Susheel Todi
What your, what’s your question? Sorry,
Mohit Kumar
My question is what was the revenue and profitability for the GGTronics especially?
Susheel Todi
So they are at I think at 100 crore at a full year basis and they are making money, they are not losing the money. They are at least around 4 to 5 crore PBT number.
Mohit Kumar
My second question is can you help us with the understand, understand the receivable jump in receivable which was 2000 crore last year I think it has jumped to 2900cr if I’m not wrong. So it says up by around maybe 50% while the top line is up by 20% odd.
Susheel Todi
Now you are talking about the trade issue. Yes, yes, yes.
Mohit Kumar
Yes, yes, yes.
Susheel Todi
Only trade receivables.
Mohit Kumar
Yes. Yes.
Susheel Todi
Okay. So you look at that the growth which is coming mainly in the power segment. Right. So if you look at even that the return of capital employed on the power side is more than 100% plus. So the receivers which are there today, that is more is coming from the power side and the average credit period is ranging between 90200 days.
Mohit Kumar
Understood? Understood. Okay. Thank you. So that’s.
Operator
Thank you. The next question is from the line of Harshit Patel from Equera Securities, Aquarius Securities. Please go ahead.
Harshit Patel
Thank you very much for the opportunity. Firstly, on motor, what would be the mix of IE3 and above in our overall FY26 volume? And where do you see that growing in next two to three years? Does this change in mix help our margins or. This change in mix will be margin neutral.
Amar Kaul
So the specific. I’m not allowed to give exact numbers of I3 I2 I4 numbers. But I can tell you it’s not very substantial at this point of time. Because even though we talk about energy efficiency but Indian market is a bit slow on adoption of IC i4 i5 technologies. So. But I’m sure it’s going to pick up in next couple of years as government is tightening and the need for energy is increasing further. So. And our R and D and development is also accelerating the same. You know, to complete the. To have a complete portfolio of IC i4 motors. So that is progressing well. So to your question, to be specific, it’s not very big in terms of the percentage of the overall portfolio because of market size, not because we cannot supply.
Harshit Patel
Understood. Secondly, on the GIS we were in the development phase for 440kV GIS. So if you could share an update on its commercialization and also the development plan for 765kvgis if I.
Amar Kaul
So Gaurav, you want to pick up that question?
Gaurav Makhija
Yeah, Storamat. So thank you for that question. So for 400kv GIS the plan is exactly on the schedule there. We have already tested the phase one of our GIS portion. The phase two is scheduled between quarter two and quarter three. So yes, once we have the type test done in any of these international labs we should be out with our commercialization for 400kv GIS. Yes. Further to that 755kv is on the conversation there. Yeah. So 2027financial should see the commercialization happening for 400kv GIS.
Harshit Patel
Understood. Lastly, if you could share an update on the drive business in terms of how much sales, assembly, value, addition, localization that we are now doing in India.
Amar Kaul
So drives. I think there’s a series of new product launches that is planned from April onwards. It’s already started getting launched. It’s called AMX drives which is a next generation drives and again low voltage drives and medium voltage the percentage is not so high but low voltage drives is almost 100% indigenous.
Operator
The next question is from the line of Sumit Kishore from Access Capital. Please go ahead.
Sumit Kishore
Thanks for the opportunity. Phenomenally strong results in power systems. Could you give us an update on the power transformer capacity expansion, how that’s panning out and what are the sort of the timelines as you add capacity and reach your target? The second question is on the export business within cge. So what has been the scale or size of exports, overseas revenue separately for power systems and industrial systems in FY26 and what is your outlook for growth through FY27? What are the opportunities that you are pursuing? Those are my questions.
Amar Kaul
So Ajay if you can take the first question in terms of transport capacity and then send it back to me for the exports I will answer.
Ajay Jain
Thanks. Thanks for the question. Regarding the transformer capacity addition. We have completed the Roundfield extensions both in Gwalior and Bopton. The Gwalior facility has now capacity increased from 6,000 to 10,000 MBs and the Mandeep Bhopal facility. So there we have done CAPEX and actually capex. As for the CAPEX plan the capacity is increased to 40,000 MBA first and then we had our lean plant. We worked along with the lean consultant and this capacity has grown to further 65,000 MBA at the end of the last year. Now for the forthcoming additions and capacity the greenfield expansion is in. Greenfield plant eruption is in progress and we hope to commission the plant somewhere between July and August. And initially we will be starting with the capacity of around 25 to 30,000 MBAs and by the end of this calendar year we will be touching the peak of 45,000 MBA there. So as of now the total up between Gwalior and Bhopal we have a capacity of 75,000 MBA and another 45,000 MBA to be added by the end of this year. So this will be around 1 lakh 10,000 MBA by At the end of this financial till end of the year. Over to you, Amar.
Amar Kaul
Okay, thanks Ajay. And I think Sumit, on your other question we would not give the split of exports by business. But yes, exports and services is a focus area for us. The only thing I can talk about is both the areas. We have more than double our order of bookings between last year and this year. So. And we have much larger expiration. So more to come. So stay tuned on it. Exports and services will stay as our key focus areas.
Operator
Thank you. The next question is from the line of Atul Tiwari from JP Morgan. Please go ahead.
Atul Tiwari
Yeah, so my question is again on the motors and drive business. So since the start of the war because a lot of clientele we understand is SME and SME. So how has the demand been for, you know that part of your business where you sell stuff to SME and SME?
Amar Kaul
Very strongly, Manu. So see in any case our for motors and drives, our exports is not substantial today. So I’m keeping out our European business for dry because that is primarily the European plant which supplies to Europe as well as to us that is going on in that geography. So there’s not any specific dip or anything that we see from these regions because of war or anything.
Atul Tiwari
Doctor, what about in India? I mean I believe you will be selling to small industries quite a bit. Right. Is the demand holding up in India or is there an impact on demand because of shortage of gas?
Amar Kaul
And we don’t see the dip in that. In fact with our GTM getting activated now with the senior leaders in place, in fact we see improvement in the order intake.
Atul Tiwari
Okay, so good to know. And so my last question is on again, the transformer capacity. So currently operational, 65k MVA. How much of it will be 400kva plus capacity or is it fungible across all the.
Amar Kaul
It is across all, all the ratings that you have even up to 765. In fact we are now getting the new plant coming in up to 1200 also.
Operator
Thank you. The next question is from the line of Amit Mahavar from ubs. Please go ahead.
Amit Mahawar
Questions first is on the power.
Operator
Sorry to interrupt. Amit. Sir, your voice is very low. Can you just get the headset a little bit closer?
Amit Mahawar
Is it fine now?
Operator
Yes. Okay, you can go ahead.
Amit Mahawar
Thank you. Yeah. Amar, I think first of all congratulations on great results on the power business when you trap the American market beyond data centers for American grid utilities.
Amar Kaul
Yeah, Amit, I couldn’t hear you. You’ll have to come close to the mic.
Operator
Sir, the line for Amit sir has been dropped. I’ll move for the next one question. The next question is from the line of Aditya Mongam from Kotak Securities. Please go ahead.
Aditya Mongia
Yeah. Thank you for the opportunity and I hope I’m audible to you all.
Operator
Can you speak a little bit louder please?
Aditya Mongia
Sure. We’ll do so. Firstly, congratulations to the entire team on a fairly strong set of results. Once again. The first question that I had from my side was if. If you could give us a sense of the addressable market on the GIS side in the 400, 765 KV category. Domestic, overseas. Whichever way you want to think through today. How do you think through the addressable market for yourself?
Amar Kaul
I think Gaurav, if you want to answer that. Of course not going too specific into the ratings but you can generally talk about GIS market.
Gaurav Makhija
Yeah. So not to get into any specifics of the details of GIS today, you can see the overall today would stand close to about 12,000 odd crores as a market total. Right. Of which I believe around 24 30% still would be GIS. Best of them could be an AIs figure. So that’s a quantum, possibly a potential addressable market that you could also be aiming at in future.
Aditya Mongia
Sure. Understood. And I’m assuming this is a domestic part. Is there also an overseas part that you believe can fall inside rkt?
Gaurav Makhija
Yeah, I think as Amar mentioned, I think exports as well as service demands are key focus. So whatever we are developing or whatever is under plan is both for domestic as well as exports for product development. Whether it’s 145kV, GIS ranging to 170 to 45 as well as are under plan for both domestic and international markets. Now
Aditya Mongia
Understood. One of your peers was talking about and similar zone that you are in terms of capabilities was talking about moving on the HVDC side of things. Is there a plan that the company has and what are the key milestones that they may have to achieve to kind of reach that level of capabilities?
Amar Kaul
Yeah. So we are, you know, it’s still at the infancy stage. We have laid down a bit of roadmap on that. But the plan is not fully mature. So when we are ready for it, we’ll surely share.
Aditya Mongia
Sure. Maybe the flow. Final question from my side. This is more on the semiconductor part. You made an initial investment about 50 crores inside edge Cortex, could you talk a little bit more about that and how to think through investment inside semiconductor design from here on maybe a little bit more on the medium term basis. Thank you. That’ll be my final question.
Amar Kaul
This is just one of the steps that is into this direction. You must have heard me every quarter in the earnings call or any of the interactions that especially. Can you hear me?
Aditya Mongia
Yes sir. Yes, yes.
Amar Kaul
Okay, so let me repeat. So what I was saying is that so these investments as you heard me in last couple of quarters that we are looking at retail pipeline of candidates on potential M and A to keep building on our design capability. So the first step was on the RF design capability. But that’s not where exilo stops. So the investment that you see is just one step forward in that direction. And you know, especially with AI thing coming in there’s so much every day the technology is changing. So you’ll see more and more of these investments coming into even these startups or these kind of companies where we will get to know the latest in the world that is happening. So more to come on that.
Operator
Thank you. The next question is from the line of Rahul Gazari from Mercury Mercury Capital. Please go ahead.
Rahul Gajare
Yeah, hi Amar, I have a question on motors. Are you able to hear me?
Amar Kaul
Yes, Rahul.
Rahul Gajare
Okay, so on the motors is it fair to say that the worst is behind and we can see improvement in growth and margin from here. And also you know, I think you talked about this earlier, you know where you’ve taken some price hike but through the last entire year how much price hike did you actually take and your comments on competitive intensity and market share in the motors. That’s the first question.
Amar Kaul
Okay, super. So I think to start with your question was how much price increase did we take? Is about all put together. It was five, five, seven and a half. So total of 17.5% price increase that we did in the last three to four quarters and with decent realization. Now good news also in that you know the team led by Jatinder who leads this business is. They have kind of maintained their market share in spite of such a steep price hike. Now I generally say that we are blessed to be the market leader. So the moment we do something like this, everybody else follows us. So that’s what has happened in that direction.
Rahul Gajare
And to quantify that, that will be in the range of 35 odd percent market share?
Amar Kaul
Yeah, it depends on different types of. If you look at overall LT motor side, we would be approximately 38, 39%. Approximately. If I go to larger industrial motors, it will be around 19, 20%. Approximately.
Rahul Gajare
Okay, okay. And fair enough. So that’s on the motors. Now on the power. I want to understand, you know the order that you bought from the data center that actually indicates the delivery time anywhere between 12 months to I think 18 or 20 months. Is that the quickest you can deliver or transform into the US market or you think you can do it much faster?
Amar Kaul
Ajay, do you want to answer that?
Ajay Jain
Yeah, for this question. I see. The delivery of transfer for the US market basically depends upon the delivery of the components like Captain and Bushings. Even though we can manufacture a transformers earlier than that. But we will always be dependent on the caption of deliveries which come from Germany and they are anywhere between nine to 12 months. So as of now we are constrained, we can deliver from 12 months onwards only because of this season.
Rahul Gajare
Okay. Because I understand, you know, Koreans can actually deliver in closer to 10 months. You know, that’s the reason this question. Fair enough. My last question is on the semiconductor business. You know, while you did indicate that the chip revenue will start in 2/4 the 500 crore which is currently booked into the financials, all of that is design LED revenue or there is some other part in that revenue. That’s my last question. Thank you.
Operator
So please stay connected. The line for the management has been disconnected. Please stay connected. Mr. Raul, you can go ahead with the last question again, please. Thank you.
Rahul Gajare
Yeah, I don’t know if you heard the question or. I will repeat the question.
Amar Kaul
Yes, please. Yes, because the line was.
Rahul Gajare
Yeah, so you know, my last question was on the semiconductor. Now you have indicated that, you know, the semiconductor chip revenue essentially will start in about two quarters or so. So I want to understand, you know, the 500 crore which is booked into the financials, all of that is design led revenue or there is something else in that 500 crore,
Amar Kaul
Which 500 crore you talk about,
Rahul Gajare
You know, the segmental breakup that you all give of the revenue over there for the, for the full year. The number is 500 crore. So I just wanted to be sure. What exactly is that number?
Amar Kaul
This is the revenue which is coming that you know the company, what we bought from Renaissance. So RF and design, these are the, these are the two things. Not, not two things. X0 is the name of the company that we created. RF business is what we bought from Renesas and that is what has started generating the revenue. So I think, yeah, it’s about 65 million was a plan. So which comes to about 500 crores. You’re right. So yeah, because it is a running operational company. So that is a number you would have seen there.
Operator
Thank you. Reminder please, to all the participants, please restrict yourself to two questions. The next question is from Amit Mahavir from ubs. Please go ahead.
Amit Mahawar
Yeah, hi, Amir Amar. First question is on the power system exports. How do you see the timeline for the grid utility approvals for us now that we have data center orders basis, maybe the quicker timeline, how soon can we expect the grid utility turnaround for us on orders? That’s the first question.
Amar Kaul
You mean terms of supply or approval process?
Amit Mahawar
Yeah. In terms of approval and potential orders from the American grid utilities, is it more like 6 to 12 months or a longer period and some contours around that?
Amar Kaul
It purely depends on, you know, what we’re talking about. Like, you know, America’s works very differently than the way we work in India. So America, there are 478 utility companies because every area is divided and even if I take top hundred utility companies, that amounts about 70, 75% of the total. So every utility is pretty independent. So and everybody has different timelines. So you cannot categorize in six months or one year or three months or five years. It will vary from utility to utility.
Amit Mahawar
Sure. And the second question is on industrial segment. You know, we have a very, very formidable competition. You know, from maybe the likes of NIDEC or WEG et cetera. Some of them are very, very aggressively expanding their manufacturing footprint in India. So my question is more on, you know, in fiscal 27, do you think the delta for us on profitability and growth is more on the rail part of industrial as we execute the propulsions and the tronics book or do you think industrial motors also will contribute significantly to profitability in 27 or that area? That’s a year where we’re still not hopeful on the motors profitability. Some color on industrial versus rail profitability in 27. Thank you.
Amar Kaul
No, I think these are different verticals. Under the segment of industrial rail is a separate vertical which is led by Dharanjay. I think he’s doing some good work there to turn it around to make sure that it’s coming to much bigger number the way Jitender did turnaround for the motors business. So which is doing fairly well. So I’m sure railways also in next few months or quarters should be inching upwards. So it’s a combination of both. And to your question on competition with the biggies and all and that’s fine. I think competition is always healthy because that keeps us on the toes. So we are just honing our skills on keep building NPD’s, you know, build our design capability and also make sure that we are cost competitive, not cheap but cost competitive so that we continue continuously keep eliminating the waste from the system. So that’s an ongoing effort.
Amit Mahawar
Sure. Thank you. Thank you. Good luck.
Amar Kaul
Thank you. Thank you. The next question is from the line of Girish from Morgan. Sandy, please go ahead.
Girish Achhipalia
Thanks for the opportunity. I had a question on Railways X Ggtronics. So what’s been the growth rate in revenues for FY26? And also if you can share any outlook on this piece of the business. And second, I wanted to understand the pipeline for us transformers. If you can share any qualitative color around how things are. I know you’ve spoken about it in the past, but any L1 status here or how does it work there, like, what’s the size of the opportunity that you’re looking at in the medium term? And the final question was on Capex, if you can just color what will be the FY27 and 28 CapEx numbers?
Amar Kaul
I think you’re supposed to be limited to two questions. Three, four questions to ask. But anyway, let’s let me go one by one. So which one do you want me to answer first?
Girish Achhipalia
So you can take up Railways and then Transformer for us and then Capex.
Amar Kaul
So railways is. So your question was specific to GGTronics. So GGTronics,
Girish Achhipalia
What’s the growth and outlook for that?
Amar Kaul
Extra Ggtronics except is your question except G Tronics or what is the question?
Girish Achhipalia
Yeah, except Ggtronics excluding ggtronics.
Amar Kaul
Breakup we don’t give no, it’s part of industrial business so we are not allowed to give the breakup of each other businesses.
Girish Achhipalia
So I was asking looking for growth rate, sir and outlook.
Amar Kaul
Yeah, that’s what I’m saying. We don’t go specific to each of the business lines in the business. So if you talk about industry or something then we can talk about it but we don’t go deeper into each of the businesses.
Girish Achhipalia
Okay. If you can share some perspective on railways outlook.
Amar Kaul
Yeah, so railways I think maybe Ranji, if you can give just a flavor of, you know, how do you look at the market and your key one or two initiatives there without getting too deeper into numbers or anything.
Dhananjay Bapat
Yeah. Thanks Amar. So on railways, yes, we see sizable potential with some of the new products that we are working through. In addition to that we also see some good opportunities on the export side which we have still to explore. Long way to go. And then on the service side is another area where we see good potential for you know, high double digit growth there and then of course helps us improve our profitability and margins on that. Thank you.
Amar Kaul
Good. Thanks Anjay.
Girish Achhipalia
Thank you. Pipeline.
Operator
The next question is from the line of from HDFC Securities. Please go ahead.
Parikshit Kandpal
Which is in a great context. So my first question is on the margins. So are we facing any impact of geopolitical issues? Currency there on the margins? Have we been able to pass on the commodity price impact to the customers? Any impact on the transform on oil prices? Impact on margin or bushings? If you can give some color on the margin on the power systems business. And going ahead, how do you look for FY27? Do you see further expansion in this business? Margins.
Amar Kaul
Thanks. Thanks for the question. I think a lot of your questions have already been answered. One is the numbers. If you look at power systems, if there was stress on the margin then it would have shown up in the numbers. Right. So if you are doing better by 200 to 300 basis points on each of these segments, so that means the margin pressure is taken care of and. This margin pressure is not only from what we get from the customer, it’s also how operationally efficient we are becoming. So I think that’s the critical thing and that’s the edge that we have from CG point of view. So that’s one. So what is the second question?
Parikshit Kandpal
I was asking largely on how is the commodity inflation hitting us and are we being able to pass it on to the customer? So is it entirely pass through or will we see some impact in human coming in on the residual order book which we have which may get hit because of the commodity inflation?
Amar Kaul
So that is a simple, you know, different businesses, different areas. So like I talked about motors we discussed just now a few minutes back is most of it we have been able to pass on. With the steep increase in the pricing for other large businesses it’s really not a problem, you know, for example transformer or rest of the large businesses because you always have the price variation clause with the customers. So whenever commodity goes up and down it gets passed on to the customer.
Operator
The next question is from the line of Shirom Kapoor from Jeffries. Please go ahead.
Shirom Kapur
Hi sir, thanks for the opportunity. Just had a question. So export. While you don’t give the breakup between industrials and power systems, could you share what is the overall contribution to your consolidated sales of exports this year?
Amar Kaul
Right now I think it’s very small. It’s about 5% approximately. But again the aspiration is to be in the much larger. Like as I said, you know we kind of more than doubled in this previous year and this year we are taking much more ambitious targets. So stay tuned on that.
Shirom Kapur
So last I mean FY25 we saw exports contributing about 10%. You’re saying it’s small all at about 5, 6% now. So did we see some kind of decline?
Amar Kaul
No, it was never 2%.
Shirom Kapur
Sorry, sorry.
Ankur Sharma
It was never 10%
Shirom Kapur
In the overall consolidated mix.
Amar Kaul
Yeah. So if you include Sweden, Germany and Netherlands it can go up to 8 to 9%.
Susheel Todi
But if you talk about from India to outside country it is around 5 to 7%.
Shirom Kapur
Understood? Understood sir. And just my second question is on your railways business. While you highlighted that you don’t give the breakup between railways and non railways could you give some direction in terms of margins on the railway business? Because you’ve been mentioning some kind of pressures because competitive in the competitive railway business. So how do you see margins tracking going ahead?
Amar Kaul
Yes, so that’s why I said and I think Dharanjay touched a bit on how he’s prioritizing and as you know Indian Railways, you won’t be able to get too good a margin. Important is your operational efficiency. And second lever that Daranjay has already activated as a part of overall theme I mentioned is Services. So service is going to be a big, big function of us. And he’s already created that vertical and is getting driven. So that will give us substantial increase in our margins. But again it doesn’t happen tomorrow. It takes a bit of time but he’s executing it fairly well. So that’s another lever. And last one I would say is also on the npd. That’s where the activation is on the R and D to get more and more new products that helps us to become more competitive. So these are some of high level actions are being taken to continuously move this from single digit margins to double digit. I think that’s the maximum I can reveal to you.
Operator
Thank you. That was the last question for the day. I now hand the conference over to Renu ma’ am for closing comments. Please go ahead.
Renu Baid Pugalia
Thank you. Jitesh. On behalf of IFL Capital, like to thank the management of CGPAR for taking the time and discussing the results with us. Sir, any closing comment that you would like to make?
Amar Kaul
No. Thank you very much and thank you everybody. I know there’s a large crowd here and interesting questions. Thank you. Stay tuned with us. I mean they are exciting days and months and years ahead of us. So thank you for your time with us and appreciate it. Have a good rest of the day. Cheers.
Operator
Thank you. On behalf of IIFL securities, thank you. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.