CG Power & Industrial Solutions Ltd. (NSE:CGPOWER/BSE:500093), is one of India’s leading engineering and industrial equipment manufacturers, with a strong legacy in the power systems and industrial solutions space.
As of January 2026, CG Power and Industrial Solutions Ltd. has transitioned from a distressed turnaround story into a high-growth industrial giant. Under the Murugappa Group’s leadership, the company has evolved into a unique “Tech-Industrial” hybrid, balancing a dominant position in heavy engineering with an aggressive entry into the semiconductor value chain.
Key Performance Highlights
CG Power’s financial trajectory is defined by high capital efficiency and a robust order book. Recent mid-term results (FY26) showcase the company’s momentum.
- Financial Growth: Consolidated revenue reached ₹2,923 crore, reflecting a 21.1% year-on-year (YoY) increase.
- Profitability: Net profit surged by 29.5% YoY to ₹284.4 crore, driven by a focus on high-margin export orders.
- Order Backlog: The unexecuted order book stands at a record ₹13,568 crore, a 73% YoY jump that provides clear revenue visibility for the next three years.
- Capital Efficiency: Maintaining a virtually debt-free status, the company boasts a Return on Capital Employed (ROCE) of ~37%, significantly outpacing the industry average.
The Competitive Landscape
Core Segment Dynamics
CG Power operates primarily in two segments where it maintains a dominant domestic position.
Power Systems (Transformers & Switchgears)
- Competitive Position: CG is a top-tier player in India’s UHV (Ultra High Voltage) and EHV (Extra High Voltage) markets. It recently secured a landmark ₹900 crore order for US data centers, signaling a shift toward high-margin export markets.
- Direct Rivals: Siemens India, ABB India, GE Vernova T&D, and Hitachi Energy.
- Strategic Advantage: Massive capacity expansion is underway (targeting 40,000 MVA at Malanpur by 2025 and 45,000 MVA at a new greenfield site by FY28) to capture the surge in global and domestic energy transition demand.
Industrial Systems (Motors & Drives)
- Competitive Position: Market leader in industrial motors with a wide distribution network.
- Direct Rivals: Bharat Heavy Electricals (BHEL), Crompton Greaves Consumer, and Larsen & Toubro (L&T).
- Strategic Advantage: High focus on energy-efficient motors (IE3/IE4 standards) and a growing presence in railway propulsion systems (KAVACH implementation and Vande Bharat traction).
The New Frontier: Semiconductors
The most significant shift in CG Power’s competitive profile is its entry into the semiconductor value chain, moving it from a “Heavy Engineering” peer to a “Tech-Industrial” hybrid.
- The OSAT Venture: Through a joint venture with Renesas (Japan) and Stars Microelectronics (Thailand), CG is building an Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. The facility aims for a staggering 15 million chips per day by late 2026/2027.
Current Market Standing
CG Power currently ranks as the second-largest heavy electrical equipment manufacturer in India by market capitalization. Its market position is fortified by two strategic pillars.
- Energy Transition Beneficiary: The company is a central player in India’s grid modernization and the “Vande Bharat” rail expansion. Its recent ₹900 crore export order for US data centers signals its transition from a domestic player to a global supplier.
Summary
CG Power is no longer just selling transformers and motors; it is selling the infrastructure of the future. With a best-in-class ROCE and a strategic pivot into silicon, it stands as a formidable competitor that blends the stability of heavy engineering with the high-growth potential of the tech sector.