CG Power Q1: consolidated PAT +16% to ₹308 Cr, margins slip as semiconductor losses widen

CG Power's Q1 FY27 consolidated print was steady on the surface but soft underneath. Revenue from operations rose 14.0% YoY to ₹3,280.81 Cr and reported PAT climbed 15.5% YoY to ₹308.28 Cr (₹313.01 Cr attributable to owners), with EPS at ₹1.99 versus ₹1.76 a year ago. Sequentially both lines fell — revenue -4.7% and PAT -15.2% off a seasonally strong Q4 — so the YoY comparison is the fair one. The headline PAT growth, however, was flattered by treasury income: other income jumped to ₹83.58 Cr from ₹28.25 Cr on QIP funds parked in deposits and mutual funds. Strip that out and operating EBIT (ex-other-income) grew only ~4% YoY, and operating margin compressed to ~12.1% from 13.3% a year ago and 13.6% last quarter.

The margin squeeze traces to two segments. Semiconductors, where CG Semi's OSAT facility began commercial production on July 4, deepened its loss to -₹49.99 Cr (from -₹8.70 Cr YoY and -₹37.42 Cr QoQ) as the ramp absorbs cost ahead of revenue. Industrial Systems' segment result fell 20.8% YoY to ₹136.28 Cr, consistent with the LME copper spike above $13,000/t that management and analysts flagged as a Q1 input-cost headwind. Offsetting this, Power Systems remained the engine — segment profit up 43.8% YoY to ₹324.09 Cr — backed by a standalone order backlog of ~₹15,719 Cr and new EHV switchgear capacity commissioned at Nashik on June 4.

The stock went into the print at ₹851.9, down 7.3% over the past month of trading.

For context: this is the second-highest quarterly PAT of the last 6 quarters.

The standalone-versus-consolidated gap is material and worth flagging: standalone PAT grew 27.0% YoY to ₹363.59 Cr on 15.8% revenue growth, well ahead of the consolidated +15.5%, because the loss-making semiconductor and overseas drives businesses sit in subsidiaries. Readers seeing the standalone number elsewhere should note the group figure is the lower one for that reason.