CG Power and Industrial Solutions shareholders approved all five ordinary resolutions at its 89th Annual General Meeting (AGM) held on July 24, 2026. The meeting, conducted via video conferencing from the company’s registered office in Mumbai, covered routine corporate governance matters including the adoption of financial statements for the fiscal year ended March 31, 2026, confirmation of an interim dividend, and the reappointment of a retiring director. While promoter and retail shareholders demonstrated near-unanimous support across all agenda items, institutional investors expressed significant dissent regarding the board composition, voting against the reappointment of Mr. Vellayan Subbiah.

The AGM was held pursuant to Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and relevant provisions of the Companies Act, 2013. Prashant S. Mehta of P. Mehta & Associates, appointed as the scrutinizer by the Board, reported that all resolutions were passed with the requisite majority. The voting rights were determined based on shareholding as of the cut-off date, July 17, 2026, when 5,72,527 shareholders were on record. Remote e-voting commenced on July 20, 2026, and concluded on July 23, 2026, with additional e-voting facilitated during the virtual meeting.

Voting Results by Resolution

The first three resolutions—adoption of standalone financial statements, adoption of consolidated financial statements, and confirmation of interim dividend—received overwhelming support. Promoter group shareholders, holding 887,667,148 shares, voted 100% in favor for all three items. Public institutional investors also voted unanimously in favor of the financial statements and dividend confirmation. Non-institutional public shareholders showed minor dissent, with less than 0.2% of votes cast against these resolutions.

Dissent on Director Reappointment

The most contentious item was Ordinary Resolution 04, concerning the reappointment of Mr. Vellayan Subbiah (DIN: 01138759), who retires by rotation. While the promoter group voted 100% in favor and non-institutional public shareholders supported the move with 99.44% approval, institutional investors registered substantial opposition. Of the 424,996,354 votes polled by public institutions, 36,969,895 were cast against the resolution, representing 8.69% of their total vote. This resulted in an overall support rate of 97.18% for the resolution, down from the near-unanimous approval seen in other agenda items.

The final resolution, ratifying the remuneration payable to the cost auditor, passed with 99.9995% support, reflecting broad consensus on audit-related matters. The scrutinizer’s report, countersigned by Company Secretary Sanjay Kumar Chowdhary, confirmed that all procedural requirements under the MCA circulars and SEBI LODR regulations were met, including the electronic dispatch of notices and the use of NSDL’s e-voting platform.

CG Power & Industrial Solutions reported a 27% year-on-year increase in standalone net profit after tax (PAT) to ₹364 crore for Q1FY27, driven by robust order inflows and margin expansion in its Power Systems division. Standalone revenue grew 16% to ₹3,061 crore, marking the highest-ever Q1 sales in recent times. The company’s unexecuted order backlog surged 45% year-on-year to ₹17,333 crore, providing multi-quarter revenue visibility despite global trade uncertainties.

The Board of Directors approved the unaudited financial results on July 24, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory auditors S R B C & Co LLP conducted a limited review of the financial statements. Notably, CG Power announced that its current statutory auditors, S.R. Batliboi & Associates LLP, will resign on August 14, 2026, to align with its holding company Tube Investments of India Limited’s audit network for better coordination.

Financial Performance Highlights

Standalone profitability strengthened significantly, with EBITDA rising 27% to ₹518 crore from ₹407 crore in Q1FY26. This growth was accompanied by a 140 basis points expansion in EBITDA margin, which improved to 16.9% from 15.4%. Profit before tax (PBT) also grew 27% to ₹487 crore. Return on capital employed (ROCE) stood at 23% for the quarter. Consolidated PAT rose 16% to ₹308 crore, while consolidated revenue increased 14% to ₹3,281 crore.

Segment-wise Analysis

The Power Systems segment was the primary growth engine, with sales jumping 31% to ₹1,402 crore. PBIT for this segment surged 44% to ₹324 crore, reflecting a 209 basis points margin expansion to 23.1%. In contrast, the Industrial Systems segment saw sales grow modestly by 6% to ₹1,671 crore. Its PBIT declined 14% to ₹148 crore due to a one-off provision of ₹20 crore in the Railways business. The semiconductor segment continued to impact consolidated margins, contributing a loss of ₹43 crore.

Order Book and Capacity Expansion

Order intake for the quarter totaled ₹4,692 crore standalone and ₹5,211 crore consolidated. The unexecuted order backlog reached ₹17,333 crore standalone and ₹18,965 crore consolidated. To meet this demand, CG Power commissioned its S3 Unit-II EHV switchgear facility in Nashik, expanding circuit breaker capacity by 80%. Additionally, its subsidiary CG Semi Private Limited commenced commercial production at its Sanand facility on July 4, 2026.

What the Numbers Show

The divergence between standalone and consolidated performance highlights the operational strength of CG Power’s core Indian businesses versus the drag from international subsidiaries and semiconductor investments. While standalone EBITDA margins expanded significantly, consolidated margins remained pressured at 14.7%. The massive order book growth suggests that current capacity constraints are temporary, supported by recent capex in Nashik and Sanand. The alignment of statutory auditors with the holding company indicates a strategic move toward integrated group governance.