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.

CG Power and Industrial Solutions Limited has received a letter of intent to resign from its Statutory Auditor, M/s. S R B C & CO LLP (“SRBC”). The resignation is scheduled to become effective at the close of business hours on August 14, 2026, following the conclusion of the Annual General Meeting (AGM) of the company’s holding entity, Tube Investments of India Limited (“TII”). This transition aims to align CG Power’s audit function with TII’s new auditor network, enhancing coordination and efficiency given that CG Power and its subsidiaries constitute more than 50% of the holding company’s consolidated financial statements.

The decision follows the mandatory rotation of auditors under Section 139 of the Companies Act, 2013. TII’s current auditors, M/s. S.R. Batliboi & Associates LLP, will demit office after completing their ten-year term upon the conclusion of TII’s AGM, proposed for August 14, 2026. To maintain consistency across the group, management proposed aligning CG Power’s statutory auditors with those affiliated to the same network as appointed by TII. Consequently, SRBC, a network firm of S.R. Batliboi & Associates LLP, initiated the resignation process vide their letter dated July 24, 2026.

In compliance with SEBI circular CIR/CFD/CMD1/114/2019 dated October 18, 2019, SRBC conducted a limited review of CG Power’s financial results for the quarter ended June 30, 2026. The firm issued its limited review report on July 24, 2026, covering both standalone and consolidated financial results. SRBC is required to submit further details as mandated by the SEBI circular in due course, after which the information will be intimated to the stock exchanges within the stipulated timeframe.

Key Dates and Entities

SRBC was originally re-appointed as Statutory Auditors for a second term of five years up to the conclusion of the 91st AGM of CG Power, during the AGM held on July 27, 2023. The master engagement agreement between the parties was dated July 28, 2023. The resignation process ensures continuity in audit quality while adapting to the structural changes in the holding company’s audit framework.

What the Numbers Show

The alignment of auditors highlights the significant weight CG Power carries within the Tube Investments group. With CG Power and its subsidiaries contributing more than 50% to the holding company’s consolidated financial statements, the audit process requires tight synchronization. By moving to an auditor from the same network as TII’s incoming auditors, the group aims to reduce duplication of efforts and streamline reporting. This structural adjustment does not reflect any dissatisfaction with SRBC’s performance but rather a strategic operational choice driven by regulatory rotation requirements at the parent level.