CG Power doubled its power-equipment orders, and now its factories set the pace

CG Power and Industrial Solutions builds the heavy equipment that carries electricity: power transformers, switchgear and the parts inside them, sold to utilities, data centres and buyers abroad. In the September 2026 quarter its Power Systems division booked orders worth ₹6,258 crore, the company said. That was twice what it booked the quarter before and 136.8% more than a year earlier, calculated from the company's reported figures.

Orders turn into sales only when the equipment is built and shipped, so the order book is where a quarter like this shows up. The division ended the quarter with ₹18,964 crore of orders in hand. That is ₹4,530 crore more than three months earlier, and more than the division added across the previous three quarters together, which came to ₹3,960 crore by the same arithmetic.

Sales have grown as well, though more slowly. The division's sales rose 41% on a year earlier, while its order book grew 81% and its intake grew faster still. With orders arriving faster than finished equipment leaves the factory, the pace of revenue over the next two years depends mostly on how quickly the plants can build.

Asked by an analyst what lay behind the intake and whether any of it was recurring, chief executive Amar Kaul said the orders came from a spread of buyers, from utilities to data centres, at home and abroad, and were "not skewed towards one direction". He later said export orders rose about 200% on the previous quarter. No single order was large enough to report to the stock exchange, he said, though some were large. He declined to split orders between domestic and export customers and to give a forecast. Asked whether the momentum could be sustained, management said only that it looked at it "positively". Without the export split, a holder cannot see how much of the jump rests on a few large contracts abroad.

The quarter also gives no sign that the orders were won by cutting prices. The division's profit before interest and tax was 25% of sales, against 20.7% a year earlier and 23.0% the quarter before, and management credited better prices and fixed costs spread over more output. That is a segment measure for the standalone business, separate from the group's operating margin. It also describes the equipment shipped last quarter, which was booked earlier, rather than the orders just won.

That puts the factories at the centre. The company said its existing transformer plant is running at maximum capacity and its switchgear plant is at peak use. A new transformer plant, built in 13 months, rolled out its first units in early September. Management expects spending on the core business to reach about ₹1,000 crore this year, and the balance sheet carries little debt, with borrowings of ₹169 crore at the end of the quarter.

Kaul said 765 kV transformers typically take 18 to 24 months to deliver, so orders of that kind will reach revenue over the next two years rather than the next two quarters. Demand has, for now, run ahead of the factories, and the speed at which these plants turn orders into shipments sets the pace of the division's sales.