Ladies and gentlemen, good day and welcome to CG Power & Industrial Solutions Limited Q2 FY 2027 Earnings Conference Call hosted by IIFL Capital Services Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note this conference is being recorded.
I now hand the conference over to Ms. Renu Baid Pugalia from IIFL Capital Services Limited. Thank you, and over to you, ma'am.
Thank you, Nazneen. Very good afternoon, everyone. On behalf of IIFL Capital, we'd like to welcome the management team of CG Power for the second quarter FY 2027 earnings call. From the leadership team today we have with us Mr. Amar Kaul, Managing Director and CEO. Mr. Susheel Todi, Chief Financial Officer. Mr. Marais Nel, EVP Drives & Automation and International Motors Business. Mr. Gaurav Makhija, Vice President, Switchgears and EPD Business. Mr. Dhananjay Bapat, Vice President, Railway Business. Mr. Jatinder Kaul, EVP, Motors Business, India Subcontinent, and Mr. Samit Khanna, Vice President, Consumer Products Business.
With these words, I now welcome the management for the opening comments. Once again, Amar and your team, many congratulations for a strong result, and so over to you for your opening comments. Thank you.
Thank you. Thanks, Renu, and rest of the team. Good afternoon, everyone, and welcome to the CG earnings call. At the outset, I am pleased to share that CG has continued to build on the growth momentum, delivering record high quarterly revenue along with margin expansion. Our quarter two and H1 performance reflects the continued strength of our diversified portfolio, disciplined execution and continued focus on operational excellence, leveraging CGH, which is our operating rhythm. Our Q2 sales grew by 32% year-over-year, and order intake grew by about 90% year-over-year, and profit before tax grew by 47% year-over-year, ensuring the positive leverage and also outpacing the revenue growth with about 180 basis points on the margin expansion. This makes it another one of the strongest quarter performance in the recent times.
Furthermore, orders remain robust with 90% growth year-over-year, and order books strengthened further at INR 21,820 crores, offering multi-quarter visibility for the organization. Now as I go deeper into the standalone performance, aggregate sales for the quarter was at INR 3,505 crores, recording a growth of 32% year-over-year. PBT had a growth of 47% at INR 602 crores, which is 17.2% of sales as against INR 409 crores, which was 15.4% in Q2 in the previous year. So 180 bps better margin improvement year-over-year, primarily driven by the power system segment, and also a contribution from our motors business as well. Return on capital employed annualized was at 27%. Order intake for the quarter was INR 8,016 crores, which is 90% growth year-over-year, and unexecuted order backlog as of 30th September 2026 was INR 21,820 crores, which is 61% higher year-over-year.
If I double-click on each segment, going to the industrial segment first. Strong growth across revenue and PBIT despite a dynamic cost environment. Aggregate sales for the quarter was INR 1,738 crores, which is 25% year-over-year, driven by strong growth across all the businesses. PBIT was at INR 164 crores, which is 9.4% of the sales, against INR 135 crores in Q2 last year. This is 60 bps improvement in a sequential manner versus the previous quarters, driven by the margin expansion in motors. Order intake for the quarter was INR 1,758 crores, which is 12% year-over-year, and unexecuted order backlog as of 30th September remains healthy at INR 2,856 crores, providing visibility for the coming quarters.
If I double-click on the power systems performance, there is strong growth and further margin expansion reflecting continued operating momentum and the robust demand. The aggregate sales for the quarter was INR 1,769 crores, with a sharp rise of 41% year-over-year, supported by the disciplined execution using our vehicle of CGH. PBIT was at INR 443 crores, which is 25% of sales as against INR 260 crores, which was 20.7% of sales in Q2 financial year 2026. 430 basis points improvement year-over-year, underpinned by the strong price realization and better operating leverage amid resilient demand. Order intake for the quarter was INR 6,258 crores, which is 137% growth year-over-year, and unexecuted order backlog as of 30th September was INR 18,964 crores, which is 81% up, providing again the multi-quarter visibility.
With that, we conclude deep dive into our standalone performance, and I will now move to the consolidated performance. For consolidated results, it includes performance of our operating subsidiaries in Sweden, Germany and Netherlands, CG Adhesive Products, which is based in Goa, CG Semi Private Limited, G.G. Tronics, Axiro Semiconductor, and other non-operating subsidiaries. Aggregate sales for the quarter was up at INR 3,802 crores and a growth of 30%. Profit before tax was 44% higher at INR 559 crores, which is 14.7% of sales, as against INR 388 crores, which was 13.3%. Margin expansion led by strong power performance, partially offset by continued talent investments that we are doing in our subsidiaries like CG Semi and Axiro, which is a semiconductor business, and the impact of about INR 35 crores, which is 91 bps. Return on capital employment for the quarter was 25%.
Order intake for the quarter was 78% year-over-year, at INR 8,485 crores. The unexecuted backlog as of quarter ending 30th September was 58% up at INR 23,646 crores. Some of the key events that I would like to highlight is, post today's board meeting, CG strengthened India's power infrastructure manufacturing capabilities with the rollout of first transformer from India's largest transformer manufacturing facility at Sehore in Madhya Pradesh. On 4th September, the greenfield facility was made operational within 13 months and is spread over 50+ acres. This facility is India's one of the largest single location power transformer manufacturing facility, built for 220 kV to 1,200 kV class power transformers with the capacity to roll out 35 power transformers every month, reaching its peak. We are honored to have Honorable Chief Minister of Madhya Pradesh, Dr. Mohan Yadav, who graced the occasion of the first transformer rollout.
Axiro Semiconductor, which is a wholly owned subsidiary of CG, acquired 100% of equity stake in TOSIL Systems Private Limited for INR 16.4 crores. The transaction was completed on 20th of August and makes TOSIL a wholly owned subsidiary of Axiro. TOSIL is engaged in the business of providing semiconductor and embedded engineering services. Company providing silicon design, verification, and physical implementation, embedded software and Linux BSP development with edge AI engineering services to global semiconductor and electronics OEMs. This is a step forward in the direction of what I have been saying earlier, into building our competence and capability in the design capability of semiconductors. CG's existing manufacturing facility in switchgear business is witnessing peak capacity utilization.
In view of the increasing order pipeline and growing demand for extra high voltage products, and in order to cater to the growing domestic and export demand, CG proposes to undertake the following capital expenditure projects. S1 unit, which is based in Ambad in Nashik, the proposed project involves an investment of INR 300 crores to increase the manufacturing capacity of OIP bushings and instrument transformers up to 800 kV by 4,236 equivalent units per year, taking the total capacity of S1 unit to 11,436 equivalent units per year. The project will involve augmentation of manufacturing, assembly, testing, and associated infrastructure, with production tentatively expected to be commenced within 30- 36 months.
S3, which is again at the same location in Nashik, Unit-II , Phase II. Further to our disclosure dated 4th of June 2026, we wish to inform that the board has approved an additional investment of INR 15.31 crores to enhance EHV circuit breaker manufacturing capacity by 3,600 units annually at S3 Unit-II facility, taking the total capacity to 10,800 units per annum. The proposed capacity addition is planned to be completed within a period of six to nine months. Going to the GIS division in Vilholi. Further to our disclosure on 24th of July 2026, we wish to inform that the board has approved enhancement of CapEx investment for the GIS brownfield at Vilholi, Nashik, from INR 35.14 crores to INR 44.62 crores, representing an additional investment of INR 9.45 crores.
The enhancement primarily provides for procurement of 800 kV high voltage testing system, along with contingency to enable testing of 245 kV and 400 kV gas-insulated switchgears. Approximately 90% of the project assets are expected to be transferred to the greenfield facility when it comes up and is commissioned fully. Accordingly, the capacity per annum will increase from 228 equivalent bays last year to 468 equivalent bays, as it matures. The above investments are part of greenfield investment proposed for switchgear business, and the existing power transformer manufacturing facility, which we name as T3, is currently operating at its maximum capacity, and CG has taken as part of CG Edge, the lean manufacturing initiative and bases the work done by the teams there.
The scope is to enhance the capacity by another 10,000 MVA within the same facility. So taking T3's overall capacity to 75,000 MVA. Given the current and projected order pipeline for the division, the board has approved the capacity enhancement. The total estimated project investment is INR 68 crores, net of taxes. The project is planned to be completed within a period of 12- 15 months and is expected to significantly enhance the plant's manufacturing capacity, enabling the division to meet the growing market demand and strengthen its competitive position. That sums up summary of our financial performance and key events.
Looking ahead, we remain focused on capitalization on the opportunities across power infrastructure, industrial manufacturing, railways, semiconductors, and while continuing to invest in technology, capacity and capabilities. We will maintain our focus on the profitable growth, execution excellence, and a long-term approach to value creation for all our stakeholders.
With this, I conclude my opening remarks. The unaudited financial statements with detailed notes are available as part of stock exchange filings and on our company website. Thank you for listening in, and back to you, Renu, for Q&A.
Sure. Nazneen , we can open the session for Q&A, please.
Okay. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Prathamesh from Abacus. Please go ahead.
Hello.
Yeah, Prathamesh.
Yeah, thank you, sir. Thank you for the opportunity and congratulations on great set of numbers. I just wanted to understand the new Madhya Pradesh facility, when we said 35 transformers per month, is it our peak potential? What kind of transformer capacity, like 100 MVA transformer or 100 kV transformer are these?
Hello.
Hello.
Yeah, Prathamesh, can you hear us?
Yeah. Sir, I can hear you. Am I audible?
Yes, very well.
Yeah. Sir, I just wanted to understand when we are saying that this Madhya Pradesh transformer capacity at 35 units per month. Just wanted to, what specification of transformers are we talking about, and is that our peak output capacity?
Yeah, this is our peak output capacity, and as I mentioned in the notes, it's the transformers ranging from 200 kV to 1,200 kV.
Okay. No, but when we say 35 units capacity, that must be when you're taking consideration of--
No. The way it is done is typically averaging it out, based on the order pipeline that we have. You take averaging out from the highest area, which is 1,200 kV to the smallest one, and then average it out. Approximately it comes to 35. It could be 30 also, it could be 40 also, depending on what kind of orders you get. This is a ballpark kind of figure.
Okay, can we put it out in terms of total MVA produced in a month, or can we have an idea on that number?
So right now, this calculation is based at approximately 70,000 MVA, because that's the direction we are getting into.
Okay, sir. On the commissioning front, was it difficult or has there been any labor issue or skilled labor issue getting at the new plant at Madhya Pradesh?
You see, the labor skill issue will happen if we don't plan it well. We have been working on this project for more than two years, even before we conceptualized. So from all our technical people to everybody, they were all hired much in advance. Since we already have the existing plant, a lot of these people were trained on the job, in action, for almost six months to 12 months. So, all that investment has already gone inside the training and development of people.
Okay, sir. Thank you, sir.
Thank you.
Thank you. Next question is from the line of Ankur from HDFC Life. Please go ahead.
Yeah. Hi. Good afternoon, sir, and thanks always for your time. First, on the order inflows in the power system side, we have seen this very strong growth. I think typically you do about INR 3,500 crores of quarterly run rate. This quarter is closer to INR 6,200 crores -odd . So if you could just help us understand where and what is this order and are these anything recurring there? How are you seeing that?
No, that's not recurring. I think it's a combination. Again, if your question is hinting towards is it specific to a sector or anything? No, it's not like that. It's a combination of, if you look at the orders that have come in, it's right from utility companies to your AI to your data centers. It's domestic exports. It's a combination of all of those. It's not skewed towards one direction.
No, sorry. So I meant is there any large order there? Any large, couple of thousand crore order there, or is it spread over[crosstalk].
No, it's not material. If it was material, then we would have informed the stock exchange. It was not material, but yes, larger size of orders, yes, were there, but not material that it justified reporting.
Okay. Therefore, the last piece on this would be, can you sustain this kind of momentum given the pipeline that you're seeing at this point?
It's the same thing. I keep saying every meeting, I keep saying that future is bright, so we look at it positively. It depends, unless something is changing worldwide or which we cannot control, but our efforts are on.
Perfect. Okay, and just a second question would be on the motor side. If you could just help, especially on the LT motors, which is our largest piece, what kind of price hikes have you really taken, say, over the last six, 12 months? How much more remains to be done? You did talk about some margin recovery on a Q-on-Q basis, right? So how's that kind of shaping up? That's all from my side. Thanks.
Yeah. The price hike is, it's a direct correlation of the way commodity has been increasing. Some of that has not been playing a good towards the favor of the industry. We increased the prices upwards of 30%+ , in the last 12 months, if I look at it. Will there be more increases? Immediately, I would say no, because you have to see how much the market is able to take and how much the commodity inflation is happening. It's a pricing game technically that way I look at it. But I think what is important is one of our prices is also our operational excellence.
If I see the good results done by the motors team business, is fundamentally the work on CG Edge on the operational excellence that we have been doing, optimizing our portfolio, eliminating the waste in the system, I think that is giving much more results than really the price increase. Price increase is directly only nullifying the commodity inflation. But the improvement that you see is coming purely from the work done by our teams in motors.
And just on margins in this segment, can we expect double-digit margins given we've taken, I'm hoping, a lot of the price increases have been taken here?
So if you see industrially, sequentially, we are improving consistently on at least 50, 60 basis points every quarter, and motors has already gone to double digits.
Okay. It's more of the rail side. Is it that's kind of weighing on?
Yes. It's the same story that even last quarter I mentioned the same thing. So railways, I would say, either flat or it might go down as well, and that's a conscious decision. We could still be making the top line meet, but then we don't want it at the expense of bottom line. So we'll see. As we are progressing, our strategy work is happening on the railway side as well. We might take a bit of a step back on that instead of just worrying about the top line and bleeding bottom line. We are working on the technology upgradation and build on the capabilities that we don't have there.
W e will not have huge improvements in the railway side because that is the time we want to use to build on our capabilities around technology and what is required for the market.
Got that. Okay, sir. Great. Thank you so much, and all the best.
Thank you.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants at the conference, please limit your questions to two per participant. Next question is from the line of Rahul Gajare from Macquarie Capital. Please go ahead. Mr. Rahul, you are not audible. As there is no response, we will move on to the next question. The next question is from the line of Umesh Raut from Nomura. Please go ahead.
Yeah. Hi, sir. Good evening, and congrats for a very strong set of results. My first question is pertaining to, again, power system order inflow. If you could help us with the number on domestic and export side separately, and what was the growth on a year-on-year basis in domestic power system and export power system in terms of order inflows?
Yeah, thanks, Umesh. The orders are definitely strong, but we don't give the split off between export and domestic. But yes, there's a good mix that the direction that we wanted, it's getting in that direction.
Hello? Am I audible?
Yes. Could you hear me?
Yeah. So any color on year-on-year growth, at least on the export side, how it was during the second quarter in terms of inflows and any color in terms of geographical mix as well, if you are seeing traction in terms of export order intake from North America, Europe, or any other market.
I can maybe give you a flavor of percentage increase. Quarter over quarter increase is about 200% for the exports.
Understood. And geographical color?
No, that, I mean, you are asking me too many details, my friend.
Hello?
Yes.
Please use your handset.
Is it audible?
Yes, it is.
My second question is pertaining to industrial segment where if I look at subsidiary revenue number, that has increased by about 10%. Is it fair to assume that we have started execution on Kavach order site or is it pending for the quarter?
Yeah. Kavach has not started yet. Although their routine business is improving. But Kavach should start very soon because most of the approvals are in place. We are just waiting for the final approval, so it should happen any time now. Definitely in the current quarter.
Understood. Thank you so much. I will join back the queue.
Thank you. Next question is from the line of Harshit Patel from Equirus Securities. Please go ahead.
Thank you very much for the opportunity, and congratulations on a great set of results. Sir, firstly, on our CapEx, I think we have already spent about INR 600 crore in the first half of FY 2027, and you have announced another INR 400 crore of CapEx across various projects. On top of that, a lot of greenfield and brownfield projects are already going on. So, could you just summarize on what will be our overall CapEx for both FY 2027 as well as FY 2028, and of course, excluding the OSAT CapEx that we are already doing?
So, if you look at our core business, as we spent this first half around INR 550 crore-INR 600 crore, maybe another we are looking at some INR 300 crore-INR 400 crore for this another six months. So maybe it will touch INR 1,000 crore for this year and next year, again, that remains in the similar range, around INR 700 crore-INR 800 crore.
Understood. This is excluding OSAT, right? That is on top of this.
Correct. Yeah.
Perfect. Sir, my second question is on Axiro. Could you help us with the first half of FY 2027 performance in terms of either EBITDA or the PBIT margin? I believe obviously much of the revenues of the semiconductor segment would have come from Axiro only. So if you can bifurcate the PBIT between OSAT and Axiro, that will be very helpful.
If you look at the number, this revenue number is only coming from Axiro, and Axiro is quarter two, they were at breakeven point.
Understood, sir. Just lastly, bookkeeping one, on the consumer business, if you can give us an update, the revenue scale currently, and have we reached a breakeven level in this business or not yet? That will be my last question.
Consumer business, as you know, we restarted that a couple of years back. We are almost there because some months will be positive, some will be close to that. But net, it has been positive, but we have been reinvesting the money that is being earned back into the marketing. As you know, it's a B2C business, so we are reinvesting it back into the business. And we have the leadership change also there. We have a new leader joining in, Samit, who is on the call as well. And he's looking at the overall strategy on this business and other additional product portfolio, any innovation that we can bring in. Yeah, excited to see how it is going to grow in future.
Understood, sir. Thank you very much for answering my question. All the very best.
Thank you.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants, please limit your questions to two per participant. Next question is from the line of Sameer Thakur from Ambit Capital. Please go ahead.
Hi, thanks. Most of the questions are answered, but just on this Kavach part. I think there is still certification pending, right? Just on the timeline of execution. Will there be any risk of execution on Kavach if the approvals are delayed or just your view on that?
Yeah, the risk, I would say, I think, the basis where we stand on the project, I think this quarter we should definitely get it and the production should commence. Including installation commissioning of these Kavach. Worst case scenario, to your question, if it goes, then definitely risk could be in terms of some of the orders may lapse end of next quarter, but it doesn't mean that it is lost kind of thing. It gets retendered, and again, you will get it back. That could be the only but additional work. That is the only thing that I am worried about.
Okay. Thank you. That was all from my side.
Thank you.
Thank you. Next question is from the line of Sumit Kishore from Axis Capital. Please go ahead.
Thanks for the opportunity and my compliments on the strong quarter. My first question is on CG Semi's G2 facility. What is the progress there? Are you on track to meet your timelines on commissioning? Could you give us some flavor of how the ramp-up is likely to happen over the next few quarters? Hope I was audible.
Oh, sorry. Sorry, you are on mute. Can you hear me?
Yes. Now I can hear you.
Yeah. On the G2, which is your question specific to G2, the construction is progressing well, and we are targeting the qualification to commence middle of next year. The commercial production, because it takes about two to three quarters to get the qualification done. So I would say somewhere towards the end of 2028 or 2029 is where we should be seeing the commercial production.
Okay. On G1, is there any sort of new customers that you have tied up, or could you give us a flavor of how things are progressing for your initial products pieces that got rolled out?
Yeah. That's a work that's happening in parallel. That's what our business development team is continuously working on. As you would know, this qualification time is very high. But yes, the work is continuously on that.
Okay. Just a repeat question on power system inflows, which kind of doubled over the quarter. Is that[crosstalk].
Sorry to interrupt, sir. Should you have follow-up questions, please rejoin the queue.
Okay.
Thank you. Next question is from the line of Amit from UBS. Please go ahead.
Hey, Amar. Hi. Congratulations on a great set of results. Sir, I have a question on your overall capacity expansion and orders for that. Where are we in the journey of qualifications in U.S. grid utilities? Do you think the ordering is already reflecting orders from clients in U.S. who are large utilities, or we will take time to get qualified? Because that's a spread-out market. We need to go utility by utility. So any color on that?
Yeah. I think your question is absolutely valid, and that's a long-term work that is happening in parallel. As you know, it takes time. So that's happening in parallel, but again, that's not the only thing we are banking on for the American market.
Okay. Fair point. Second question on industrial. A lot of emerging segment has a very different product requirement, a very different grade of motors and drives. For us, can I say right now we are-- Because if you see the revenue run rate and the order run rate, I think pricing is double digit now for last six months, holding up. Right? I do not have the exact break of rail right now. If you can help us understand the growth rate in orders in industrial, ex of rail. Do you think the industry short cycle improvement in volume and then pricing is enough for us to have a 20% kind of growth in this business in the next 12 months, or do you think it's too ambitious a number?
Yeah. So yes. If you have seen that NPD, which is the core to our business, we already accelerated for motors. We did not have the full range of IE3, IE4 motors, which starting with 3rd of August was our first frame, 280 frame that we launched. Every 45 days, we are launching additional frame that is coming into the picture. So that will upgrade our whole portfolio over the next nine months to 12 months. We should get upgraded to that. Then in parallel, we are also looking at advanced technologies, whether it's a permanent magnet motor or it is the IE5+ kind of motors, which will help us open the doors for export market as well.
So that work is absolutely happening, and we also have on the call our Chief Technology Officer who joined us recently. That is also to help us give a boost to our technology leadership in the market.
Sure. So we will wait for more color on industrial upgrading product. Thank you, Amar, and good luck.
Thank you.
Thank you. Next question is from the line of Atul Tiwari from J.P. Morgan. Please go ahead.
Yes. Thanks a lot. Sir, on your power systems margins, now you are hitting 25%, and previously you have alluded that margins will improve, so you have achieved that. Can margins improve from here as well?
Atul, I keep saying the same thing. Future is always bright. If you don't think positive, it will not happen. Again, I think definitely that's the intention where we want to get into, but it's not only the pricing game that comes from the customer. Because customers will always have a threshold beyond which it will not go. I think important is, how are we becoming efficient day by day, week over week, year over year? That's exactly where we spend a lot of our energy on. So I'm pretty hopeful that either maintain or go above these margins.
Great, sir. My last question is on transformer manufacturing capacity. Just confirming, with this commissioning of this facility in MP, now we are at 75,000 MVA currently. Is that the right understanding?
Which one? The old facility or the new facility?
The total transformer manufacturing capacity today, after commissioning of the new facility in MP. What is the current capacity?
The existing plant which we have in Bhopal, that is about 65,000 MVA. The new plant will start hopefully next quarter, should be about 10,000+ MVA . Then you have distribution transformer, which is about 12,000 approximately.
Okay. Thank you.
Thank you. Next question is from the line of Shirom Kapur from Jefferies. Please go ahead.
Hi, sir. Thanks for the opportunity. Just a quick bookkeeping question. What would be your order book right now in G.G. Tronics? Have you received any new orders so far here? Last quarter you had mentioned it's around INR 1,000 crores. Has there been any update there?
No, currently it's about the same, INR 1,069 crores approximately, and that's at the moment you start shipping out, then it get reduced. There are other tenders coming up and we're looking forward it to be a positive side.
Got it, sir. And sorry, just to follow up on the capacity, the new 10,000 MVA that you just announced. That will take your Bhopal plant up from 65,000 to 75,000, and balance you still have a 45,000 greenfield manufacturing facility coming up, right? Including all of that, your power transformer manufacturing capacity should eventually come to around 120,000 MVA. Is that correct?
Yeah. Still counting.
Sure. Sure, sir. Got it. Thank you so much.
Thank you.
Thank you. Next question is from the line of Lovish from Burman Capital Management. Please go ahead.
Hi. Thank you for the opportunity. Am I audible?
Yes.
Congratulations, sir, on the strong set of results. My question is regarding the new Sehore facility that we have started, I think, last month. I just wanted to understand, would we require fresh short circuit testing approvals from PGCIL for starting shipping from this facility, or would our existing approvals be sufficient?
That work is going on, depends on the customer and the country. Somewhere it is required, somewhere it is not required. It goes case to case basis.
Got it. And sir, what would be the timeline for getting that approval?
No, it is different. That is why I said it is order to order. So right now, for our ramp-up plan on the order book that we have placed on the new facility, there is no bottleneck there.
Understood. And sir, recently, we also heard that GEC-III has been approved. Just wanted a sense from you on how that impacts the overall demand scenario for us. Secondly, on that one, I think going forward, the addition would be more in the intrastate segment. Also wanted to understand whether the intrastate would be more focused towards 400 kV category, while the interstate was more towards 765?
A mix of everything. Interstate is more about [audio distortion].
I did not get your question. Can you be more specific on your question?
Sure, sir. Given that GEC-III has been approved, firstly, I wanted to understand what would be the impact on demand for us from this approval. Secondly, would the mix of transformers change from 765 kV there in interstate towards more 400 kV in intrastate?
Yeah. It's across the board. For us, it doesn't matter whether it's 400 kV or 765, even up to 1,200, we are fully equipped to cater to the whole range.
Got it. Thank you, sir.
Thank you.
Thank you. Next question is from the line of Kishore from Fortune Wealth Management. Please go ahead.
Hi, sir. Congratulations on another strong quarter. My question is, with the new capacity addition in transformer and switchgear, could you share how much revenue they can add and when you expect it to start contributing?
Yeah. I think this will be linked to our business plans, because the way we look at next year after coming in, that's why we are making these investments now. We would prefer to execute, and then you see where we are getting in. Our aspiration definitely is to keep high double-digit growth, so you can do rest of the calculation backwards.
Okay. Can you give me overall revenue growth guidance for FY 2027?
No, we don't give this forward-looking forecast.
Guidance, we don't give that.
Okay. Thank you. That's all from my side.
Thank you.
Thank you. Next question is from the line of Rahul Gajare from Macquarie Capital. Please go ahead. Mr. Rahul, you're not audible.
I hope you are able to hear me now.
Yes.
Okay. I will use this. I have two questions. First is on the power side. I want to understand if you were to get a 765 kV transformer order today, when is it that you can deliver it?
Do you have the RFQ for that? We will be happy to give you delivery.[audio distortion].
Sorry. I did not get you. What did you say?
That was on the lighter side. I said
No, I didn't hear you only. Sorry.
Can you hear me now?
Yeah. I can hear you. Yes.
I said that was on the lighter side. I said, if you have any requirement, you tell us, we will give you priority delivery.
Okay.
Typically, it depends. 765 kV would be about 18-24 months.
Okay, fine. That is great, actually. How much is export in the orders that you have got in this particular quarter or in the backlog? We just need a color on export as the overall share in your backlog or intake.
Yeah, I think there was a similar question before you as well. What we gave was about the numbers, we cannot give you the split, but yes, the increase in order booking is about 200%.
Okay, so export has picked up. Now on the semiconductor side, I want to know how much is it that you have spent from the total INR 7,500 crore. How much have you totally spent, and how much is the money that you have received from the government? Maybe Susheel can throw more light in terms of how are you accounting for it in your financials.
Well, you are asking, I don't know, how many questions? First please, about the total investment CG has made so far is around INR 1,000 crore. What was your second question?
No. So total out of that INR 7,600 crore, how much is totally spent? So CG has invested INR 1,000 crore. Balance INR 6,600 crore is expected to be spent. Is that what you are saying?
No, because that similar money had come from the government as well. So INR 2,000 crore, almost INR 1,000 crore we got that central government capital support. INR 2,000 crore we already spent.
Okay, so there is no delay in terms of your spending and government money receiving. There is no-- Okay. That is great. How are you accounting for this government money which comes?
I am sorry to interrupt, sir. Should you have a follow-up question, please rejoin the queue.
No, I can answer it. Maybe we just do the netting with that, our assets. We report as net numbers in our balance sheet.
Okay, fine. Thank you very much.
Thank you. As that was the last question for today, I now hand the conference over to Ms. Renu Baid Pugalia for closing comments.
Sure. Thank you, operator. I would just like to take the last question for today's session for Amar and his team. Well, for power system, I think the kind of capacity expansion, brownfield, greenfield that you have done, that should broadly take us almost 2x the revenues in the next two years. My question here is, we have done variety of initiatives on new product development in the industrial segment. What are we exactly doing to fill in the product gaps and to tap new technology initiatives in the power solution segment for us beyond the conventional power transformers, distribution transformers and the switchgear portfolio that we have? That's the last question of today's session.
Okay, good. Thanks, Renu. A very intelligent question. So over and above, industrial you have seen already on the power side. Over and above switchgear transformers, we are actually working on the power electronic side. I think over the next few quarters, three years, you will see us getting ourselves deeper into the holistic solution over and above what we are already doing.
Would it be largely organic, inorganic?
It could be anything, because we are looking at both.
Got it. On behalf of IIFL Capital, I would like to thank the team of CG Power for this conference call and giving us the opportunity and the audience for an interactive Q&A session. Amar, any closing remarks from you would be welcome. Thank you.
No, thank you so much, Renu, and thanks everybody. Thanks, appreciate your questions and continue to support us, and we will keep doing our hard work. Thank you so much. Have a good rest of your day.
Sure. Thank you.
Thank you. On behalf of IIFL Capital Services Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.