Management Discussion and Analysis
ECONOMIC OVERVIEW
GLOBAL SOCIO-ECONOMIC LANDSCAPE The global economy in FY26 has demonstrated resilience but faces renewed and intensifying headwinds. After navigating the trade policy disruptions of 2025, the global economy encountered a significant new shock with the outbreak of conflict in the Middle East in early 2026. This disrupted commodity markets, tightened financial conditions, and raised inflation expectations at a time when the disinflation process was still incomplete. This development, alongside the lingering effects of the Russia-Ukraine conflict on energy markets and global supply chains, has materially altered the near-term outlook.
The structural drivers of the global economy continue to reflect deep, ongoing shifts. Geopolitical fragmentation is accelerating the reconfiguration of global supply chains, with countries and corporations alike diversifying sourcing and production footprints. The trade architecture is also being redrawn as rising tariff regimes have prompted a growing number of countries to conclude long-stalled bilateral trade agreements, influencing the flow of goods, services, and capital across regions.
Technology and energy transition remain central to global economic activity. Investments in artificial intelligence, electrification, and clean energy continue to drive long-term growth potential, particularly in Asia and North America. Growth trends remain uneven across regions. Advanced economies continue to face structural headwinds, including ageing demographics, subdued productivity growth, and fiscal tightening. Emerging markets benefit from stronger domestic demand and demographic tailwinds but face disproportionate exposure to the current conflict through commodity price volatility, currency depreciation pressures, and tighter global financial conditions.
Global Economic Growth
According to the World Economic Outlook, April 2026, published by the International Monetary Fund, global growth is projected at 3.1% in 2026 and 3.2% in 2027, under the assumption that the Middle East conflict remains limited in duration and scope. This marks a downward revision from the 3.3% trajectory projected earlier. The outbreak of war has interrupted that momentum and the impact is being felt through three primary channels: higher energy and food prices, persistent wage and price inflation, and a confidence shock tightening financial conditions globally.
Global headline inflation, which had been on a sustained declining path, is now expected to tick up to approximately 4.4% in 2026 1 , before resuming its decline in 2027. This is a sharp departure from the earlier disinflation trend. The impact is expected to be particularly pronounced
in emerging market and developing economies, especially commodity importers with pre-existing fiscal and external vulnerabilities.
Downside risks to the outlook are decisively dominant. A longer or broader conflict, deeper geopolitical fragmentation, renewed trade tensions, or further erosion of institutional credibility could significantly weaken growth and destabilize financial markets. On the upside, a swift resolution of the conflict, or meaningful progress in trade negotiations could lift global activity.
SOCIO-ECONOMIC LANDSCAPE: INDIA India continues to be one of the fastest-growing major economies, supported by strong domestic demand, policy continuity, and sustained infrastructure investment. The economy is being shaped by structural reforms, increasing formalisation, and government-led initiatives - most prominently the Production Linked Incentive (PLI) scheme, which remains fully active across 14 strategic sectors with a cumulative outlay of 1.91 lakh Cr and has attracted investments exceeding 2.16 lakh Cr as of December 2025. 2
A particularly significant development in FY26 has been Indias accelerating trade diplomacy. Over the past few years, India has concluded several Free Trade Agreements (FTAs) spanning 38 countries, with multiple landmark agreements executed in FY26, including 2 :
- The India-UK Comprehensive Economic and Trade Agreement (July 2025)
- The India-EFTA Trade and Economic Partnership Agreement entering into force (October 2025)
- The India-Oman CEPA (December 2025)
- The India-New Zealand FTA (December 2025)
These agreements open preferential market access across key geographies for Indian goods, including engineering products, capital equipment, chemicals, and pharmaceuticals. This positions India as an increasingly attractive destination for supply chain diversification away from geopolitically exposed manufacturing hubs.
India is also emerging as a key player in the global energy transition, with significant investments in renewable energy, transmission infrastructure, and grid modernisation. Global supply chain realignments are further strengthening Indias position as a manufacturing hub, supported by its engineering talent base and competitive cost structure. The India Semiconductor Mission continues to build domestic capability in advanced electronics, a strategically important priority given global semiconductor supply chain vulnerabilities.
Source: IMF World Economic Outlook Source: pib.gov.in
At the same time, Indias status as a net energy importer means the country faces some exposure to the commodity price volatility arising from the Middle East conflict. This is a risk for emerging market commodity importers. Prudent macroeconomic management and continued fiscal discipline will be important buffers against this external pressure.
Public capital expenditure continues to drive private investment, creating multiplier effects across sectors. Government-led initiatives such as industrial corridors, logistics infrastructure, and production- linked incentives are improving the ease of manufacturing and enhancing global competitiveness. The emphasis on building resilient and diversified supply chains is further strengthening Indias positioning as a global manufacturing hub.
GDP Growth: India
As per the IMFs April 2026 World Economic Outlook, Indias GDP grew at an estimated 7.3% in FY26 and growth is projected to moderate to 6.5% in FY27, reflecting a more benign external environment despite global headwinds. This moderation reflects a normalisation of growth following a strong recovery phase, while underlying fundamentals remain robust. Growth continues to be driven by domestic consumption, infrastructure investment, and expanding industrial activity. Indias increasing focus on sectors such as renewable energy, advanced manufacturing, and digital infrastructure is strengthening its long-term growth trajectory. Indias expanding FTA network further enhances its export potential and positions it as a preferred partner in reconfigured global supply chains.
INDUSTRY OVERVIEW
INDUSTRIAL SYSTEMS
Indias Industrial Momentum: Strengthening Scale and Complexity
Indias industrial sector continues to demonstrate resilience and structural strength, supported by sustained policy focus, infrastructure investments, and a gradual shift towards higher-value manufacturing. According to the Economic Survey 2025-26, the industrial sector was projected to grow by 6.2% in FY26. Manufacturing has emerged as the key engine of this recovery, with GVA growth signalling a structural revival and reinforcing the sectors role as a key driver of economic growth. Real GVA is estimated at 294.91 lakh Cr in FY26, against 273.36 lakh Cr in FY25, registering a growth rate of 7.9% as compared to 7.3% growth rate in FY25 3 . This momentum is increasingly underpinned by structural shifts within the sector, including greater formalisation, improved infrastructure availability through corridor-led development, and deeper integration of technology across operations.
A notable transformation is the rising share of medium- and high- technology manufacturing, reflecting a gradual move up the value chain. Government-led initiatives have been catalytic in driving this shift - most notably the Production Linked Incentive (PLI) scheme across 14 sectors, which has attracted over 2.0 lakh Cr in actual investment, generated incremental production and sales exceeding 18.7 lakh Cr, and created over 12.6 lakh jobs as of September 20 25 4 . Indias innovation credentials have strengthened in parallel, with the countrys Global Innovation Index rank improving to 38 th in 2025, up sharply from 66 th in 201 9 5 , reinforcing the role of manufacturing-led innovation in long-term industrial competitiveness.
At the same time, industrial financing patterns are evolving. While bank-based credit growth moderated, financial flows from non-bank sources to the commercial sector recorded double digit growth between FY20 and FY25, indicating diversification of capital sources and improved access to funding for industrial expansion.
Core Industries Driving Demand Expansion
Indias core input industries continue to anchor industrial growth, supported by strong domestic demand and infrastructure development.
The country remains the second-largest global producer of steel and cement, with sustained investments in infrastructure expected to further drive consumption. Cement demand, in particular, is supported by government-led initiatives in highways, railways, housing, and urban development, alongside rising rural and industrial activity.
The steel sector has undergone significant transformation over recent years, driven by robust demand from construction and manufacturing. Meanwhile, Indias coal production reached a historic high of over 1,047 million tonnes in FY25, reflecting the scale of energy demand required to support industrial expansion.
The chemicals and petrochemicals sector continues to play a critical role in industrial value chains, contributing meaningfully to manufacturing GVA, while enabling downstream industries including pharmaceuticals, agriculture, and specialty materials.
Infrastructure and Industrial Capex: Enabling Sustained Growth
The next phase of Indias industrialisation is being shaped by large- scale infrastructure investments and a renewed focus on manufacturing competitiveness.
Government-led initiatives such as industrial corridors, logistics infrastructure, and production-linked incentives are improving ease of manufacturing and enhancing global competitiveness. At the same time, the focus is shifting from import substitution towards scale, efficiency, and deeper integration into global value chains.
This transition is expected to be supported by increased private sector participation in capital expenditure, alongside continued investments in technology adoption, skill development, and innovation systems. The emphasis on building resilient and diversified supply chains is further strengthening Indias positioning as a global manufacturing hub.
Implications for Industrial Systems
The evolving industrial landscape presents significant opportunities for industrial systems players. Sustained growth in core sectors such as metals, cement, and energy continues to drive demand for heavy- duty motors, drives, and automation solutions. At the same time, emerging sectors such as data centres, electric mobility, electronics manufacturing, and renewable energy are creating demand for higher- efficiency, technologically advanced solutions.
The increasing complexity of industrial operations, coupled with the need for energy efficiency and reliability, is accelerating the adoption of advanced motor systems, digital monitoring solutions, and integrated industrial technologies.
Against this backdrop, companies with strong execution capabilities, deep domain expertise, and the ability to align with evolving industrial requirements are well positioned to participate in Indias next phase of industrial growth.
MOTORS
Demand Anchored in Infrastructure and Manufacturing Growth
Indias motors market continues to track the broader trajectory of industrial activity, infrastructure creation, and energy transition. In FY26, this linkage has strengthened, with industrial growth supported by sustained public capex and improved momentum in core sectors. The Economic Survey 2025-26 highlights continued expansion in infrastructure-linked industries such as steel, cement, mining, and water, which remain key demand anchors for heavy-duty motors requiring high reliability, uptime, and operational efficiency.
Shift from Core Industries to Emerging Demand Segments
While traditional sectors continue to drive base demand, FY26 witnessed a visible shift towards new-age industrial consumption. The rapid expansion of data centres, electronics manufacturing, and renewable energy ecosystems is creating incremental demand for specialised motors and integrated systems. Indias data centre capacity is expected to scale significantly over the next decade, driven by digitalisation, AI adoption, and cloud infrastructure, leading to increased requirements for HVAC systems, cooling solutions, and high-efficiency motors.
Energy Efficiency and Regulatory Push
Energy efficiency is emerging as a key decision driver. With rising energy costs and regulatory focus on sustainability, industries are accelerating adoption of high-efficiency motors and variable frequency drives (VFDs). Programmes led by the Bureau of Energy Efficiency (BEE), along with industry-level decarbonisation targets, are reinforcing this shift towards energy-optimised industrial operations.
From Volume Growth to Value-Led Demand
The motors market is increasingly transitioning from volume-led growth to value-led demand. Customers are prioritising performance, lifecycle efficiency, and application-specific solutions over standardised offerings. This is expanding demand across sectors such as water management, urban infrastructure, renewable installations, and commercial buildings, while also increasing the need for technologically advanced and customised motor solutions.
RAILWAYS
Embracing Technological Transformation
Indian Railways has undergone significant transformation shifting
from conventional infrastructure to modern technologies leading to a
sustainable network that will support Indias growing economy.
Some of the key accomplishments include:
- Record-breaking Freight and Operations:
o Freight transport reached an all-time high
o India became the worlds 2 nd largest rail freight transporter surpassing United States.
- Infrastructure and Network Expansion;
o Electrification Milestone: Nearly 99.6% of the Broad Gauge
(BG) network was electrified by March 2026
o Kashmir All-Weather Connectivity: Udhampur-Srinagar- Baramulla Rail Link (USBRL) was completed, including Chenab Bridge (worlds highest arch bridge) and longest operational railway tunnel (T-50)
o New Pamban Bridge: Indias first vertical-lift railway sea bridge was commissioned in April 2025
- Passenger Service and Modernisation
o Vande Bharat Expansion: Vande Bharat Sleeper service was launched in January 2026, offering premium, long-distance AC travel
o Amrit Bharat Station Scheme: 119 railway stations were redeveloped, featuring modern amenities and re-imagined passenger facilities
o Safety Upgrades (Kavach 4.0): The indigenous Automatic Train Protection system (Kavach) was deployed on over 3,100 route kilometres, with plans to expand further to enhance collision prevention
o Locomotive Production: India emerged as a leader in locomotive manufacturing, producing 1,674 units
- Digital Transformation
o RailOne App: Launched in July 2025 as a one-stop solution for ticket booking, live train tracking, e-catering, and grievance redressal
o AI Surveillance: Video Surveillance Systems (VSS) with Artificial Intelligence (AI) and facial recognition technology were installed at 1,731 + stations to enhance security
Government Initiatives Driving Railway Growth
The Indian government continues to invest in strategic initiatives to modernise railway sector. A few examples include:
- High-speed Rail corridors: Identified 7 new high-speed corridors to enable faster inter-city travel. Mumbai-Ahmedabad Bullet Train (MAHSR) to launch in 2027
- Dedicated Freight Corridors (DFCs): A new 2,052 km DFC connecting Dankuni (West Bengal) to Surat (Gujarat) is proposed to speed up logistics
- Vande Bharat Expansion: Continued rollout of modern trains, including Vande Bharat Sleeper trains
- Locomotive Manufacturing: Increased domestic production, with 1,674 locomotives produced in 2025-26, highlighting self-reliance
- Kavach: The indigenous Kavach Automatic Train Protection System continues to be deployed on top priority to enhance safety
- 100% Electrification by 2030: Reducing carbon emissions and promoting green energy solutions.
- Public-Private Partnerships (PPP) & 100% FDI: Encouraging private investment to accelerate infrastructure growth
The Indian Railways Budget 2026-2027 has allocated 2,93,000 Cr towards capital expenditure, emphasizing infrastructure expansion, modernisation, and safety enhancements. Key investment areas include:
- 36,721 Cr for new railway lines
- 37,750 Cr for doubling existing tracks, and
- 52,108 Cr for rolling stock acquisition
- Additionally, 7,897 Cr is set aside for traffic facilities and yard remodelling
INDUSTRY OVERVIEW
POWER SYSTEMS
Indias power sector continues to evolve rapidly, supported by strong policy momentum, rising electricity demand, and accelerated adoption of renewable energy. India remains committed to achieving 500 GW of non-fossil fuel capacity by 2030, aligned with its net-zero target by 2070, as announced at COP26 and reaffirmed through subsequent government policy updates.
The sector has witnessed sustained growth in both demand and capacity. Indias peak power demand has continued to rise, reaching a recent high of over 255 GW, reflecting structural growth in electricity consumption driven by industrialisation, urbanisation, and emerging demand segments. At the same time, the countrys total installed renewable energy capacity has scaled up significantly to approximately 266 GW as of early 2026, with solar accounting for more than 50% of total renewable capacity.
This expansion marks a structural shift in the power ecosystem. The grid is transitioning from a conventional, generation-led model to a more renewable-heavy, decentralised, and technology-intensive system, where variability, intermittency, and system balancing are becoming critical challenges.
The National Electricity Plan (NEP) continues to guide this transition, projecting substantial additions in renewable capacity alongside investments in battery energy storage systems (BESS) and flexible generation. The plan emphasises the need for grid modernisation, transmission expansion, and system flexibility to support large-scale renewable integration.
Energy storage is emerging as a key enabler of this next phase. India is witnessing increasing deployment of both battery storage and pumped storage projects, with long-term plans to scale storage capacity significantly to ensure round-the-clock renewable power and grid stability.
Globally, similar trends are visible. Electricity demand is expected to grow steadily through the decade, supported by electrification and digitalisation, while renewable energy continues to dominate incremental capacity additions. This convergence of global and domestic trends is reinforcing the need for robust, flexible, and intelligent power systems.
Transmission and Distribution
Indias transmission and distribution (T&D) network continues to expand in both scale and capability, forming the backbone of a more resilient and renewable-integrated power system. The countrys transmission infrastructure has crossed a key milestone, with total transmission line length exceeding 5 lakh circuit kilometres (ckm) at 220 kilovolt (kV) and above, reflecting sustained investments in high-voltage networks and inter-regional connectivity. This expansion is being driven by rising electricity demand, increasing renewable energy penetration, and the need to connect geographically concentrated generation with dispersed consumption centres.
As the energy mix evolves, transmission is emerging as the critical enabler of Indias power transition. The rapid scale-up of renewable energy, with installed capacity reaching approximately 266 GW as of early 2026, is increasing the complexity of grid operations and necessitating significant investments in evacuation infrastructure and system balancing capabilities. The grid is progressively shifting toward high-capacity transmission corridors, including 765 kV AC systems and strengthened inter-state transmission systems (ISTS), to support long-distance power transfer and ensure reliability across regions.
In parallel, transformation capacity across the network continues to expand, strengthening the grids ability to handle higher loads and improving system resilience. The focus is increasingly moving beyond capacity creation toward network efficiency, stability, and realtime system management, particularly in the context of renewable intermittency and rising demand variability.
transmission planning aligned with the National Electricity Plan are further strengthening evacuation infrastructure to support Indias 2030 clean energy ambitions. In parallel, the expansion of open access and market-based mechanisms is broadening the base of power consumers and increasing demand for transmission capacity and flexible distribution networks.
On the distribution side, the sector is undergoing a structural transformation aimed at improving operational efficiency and financial sustainability. Under the Revamped Distribution Sector Scheme (RDSS), large-scale investments continue to be deployed toward smart metering, infrastructure strengthening, and loss reduction. Smart metering works covering approximately 19.8 Cr consumers have been sanctioned under the scheme; however, implementation has now moved into an execution phase, with around 4 Cr smart meters installed under RDSS and over 5 Cr deployed across all schemes as of early 2026. While the rollout remains work-in-progress relative to overall targets, it represents one of the largest digitalisation initiatives in the power sector. These interventions are already translating into measurable outcomes, with aggregate technical and commercial (AT&C) losses declining, alongside a gradual narrowing of the average cost of supply-average revenue realised (ACS-ARR) gap. This indicates progress toward a more efficient and financially viable distribution ecosystem.
IEEMA Growth Indices (%GOLY Apr - Dec 25)
Additionally, the growth of rooftop solar, distributed generation, and emerging energy storage solutions is enabling bidirectional power flows and altering consumption patterns. This is driving the need for more advanced distribution infrastructure capable of managing variability, ensuring power quality, and supporting real-time monitoring and control.
The evolving geopolitical environment is also shaping the operating landscape for the sector. Global conflicts and trade realignments have introduced volatility in commodity prices and supply chains, particularly for critical inputs such as copper and steel. For OEMs, this has translated into increased focus on supply chain resilience, localisation, and execution discipline. At the same time, while India continues to prioritise domestic manufacturing and trusted supply chains in critical infrastructure, global competition remains a factor in pricing and procurement dynamics.
Taken together, these developments are reshaping the demand profile for transmission and distribution infrastructure. The sector is transitioning from a phase of expansion to one defined by performance, reliability, and system-level optimisation. This is driving sustained demand for high-performance transformers, advanced switchgear, and grid stabilisation technologies, with increasing emphasis on execution capability, engineering depth, and lifecycle efficiency.
CGs capabilities across transformers, switchgear, and system solutions position it well to support a grid that is becoming more complex, performance-driven, and renewable-intensive. With a strong focus on execution and reliability, CG continues to align closely with the evolving requirements of Indias energy transition.
Policy and regulatory frameworks have played a central role in enabling this transition. The structured trajectory of waivers on ISTS charges for renewable energy and energy storage projects, along with regulatory reforms in connectivity and network access, is accelerating renewable integration and improving grid utilisation. Government- led initiatives such as the Green Energy Corridor programme and
INDUSTRY OVERVIEW
SEMICONDUCTORS
Indias semiconductor sector is witnessing strong growth, driven by increasing demand across 5G/6G, artificial intelligence, automotive, and high-speed connectivity applications. The domestic semiconductor market is projected to reach approximately $100-110 billion by 2030, supported by strong policy initiatives and rising global demand. India holds a significant advantage in semiconductor design,
contributing nearly 20% of the global design workforce and hosting a growing number of fabless companies. Government-led initiatives such as the India Semiconductor Mission and Design Linked Incentive (DLI) Scheme are further strengthening the ecosystem, positioning India as an emerging global hub for semiconductor design and innovation. 6
Source:pib.gov.in, india-briefing.com, investindia.gov.in
BUSINESS SEGMENTS REVIEW
At CG Power and Industrial Solutions Limited (CG), the business operations are spread across three business divisions:
| Industrial Systems | Power Systems | Semiconductors |
| Motors (LT/HT/FHP) & Stamping | Transformers | Semiconductors Design |
| Drives & Automation | Switchgears | OSAT |
| Railway Products | Turnkey Solutions | |
| Fast Moving Electrical Goods (FMEG) |
INDUSTRIAL SYSTEMS-MOTORS
As one of Indias leading motor manufacturers, CG continues to deliver innovative and high-performance motor solutions designed to address the evolving requirements of industrial, infrastructure and commercial solutions. With decades of engineering expertise, CG has built a strong reputation for reliability, energy efficiency, and application-specific innovation across domestic and international markets.
- Medium Voltage (MV) Motors: Demand for MV motors across water infrastructure, irrigation, and heavy industrial segments translated into meaningful deployments in high-load, performance-critical applications such as material handling and pumping. This continued to reinforce CGs reputation for reliability, robust engineering, and consistent performance in demanding operating environments.
The Company offers a comprehensive portfolio of motor solutions including low-voltage motors up to 710 kW, medium-voltage motors up to 20 MW, fractional horsepower motors up to 5.5 kW, specialised drive systems, and customised engineered solutions designed for demanding industrial applications. Its continued focus on research and innovation has enabled CG to remain at the forefront of energy-efficient motor technology, becoming the first company in India to design and manufacture a complete range of high-efficiency motors from IE2 to IE4 premium energy efficient induction motors.
This combination of technological depth, product breadth, and customer-centric engineering continues to strengthen CGs leadership in the industrial motors segment.
Business Performance
CGs Motors Business delivered a resilient performance across key market segments, achieving a substantial revenue growth compared to FY25. The division continued to strengthen its presence across infrastructure, industrial, agricultural, and renewable energy sectors through its comprehensive portfolio of Low Voltage, Medium Voltage, Generators, and FHP/commercial motors. In FY26, the business demonstrated strong alignment with national priorities around water management, sustainability, rural development, and energy transition.
- Low Voltage (LV) Motors: The Low Voltage Motors business continued to perform strongly across infrastructure, industrial processing, water management, and renewable energy applications. The division also deepened its contribution to the circular economy by supplying motors for recycling and material recovery facilities involved in tyre, metal, and waste processing, helping transform industrial waste into reusable resources while enabling more sustainable and resource-efficient manufacturing ecosystems.
- Fractional Horsepower (FHP)/Commercial Motors: FHP
motors continued to support agri-mechanisation initiatives, particularly through their use in chaff cutters and small agricultural equipment under rural development programs. This segment reflects CGs commitment to improving farm productivity and supporting grassroots economic growth.
- Generators and Windmill Applications (Renewable Energy):
In the renewable energy space, CG strengthened its contribution to clean power generation through the supply of generators and components for windmill applications. These efforts are aligned with the global shift towards sustainable energy solutions and reinforce CGs positioning within the green energy ecosystem.
- Service Business: The Service Business is focused on delivering reliable lifecycle support across the installed base through maintenance, modernisation, and technical services. Engagements spanned preventive care, breakdown response, retrofits, spares, and long-term service contracts across
key industries and regions. Operational emphasis remained on responsiveness, field capability, safety, and process standardization. Digital tools and structured service programs enhanced asset visibility and service efficiency. During the year, the business strengthened its service footprint across the installed base through consistent execution and customer engagement.
Commissioning activity of 900 kW 4Pole 6.6 kV HT Motors at Coal field in Nagpur
Overall, the Motors Business continued to strengthen its presence across sectors that are vital to economic development and sustainability, delivering a diversified portfolio that reflects CGs purpose of Pioneering Innovation for a Sustainable Future through solutions that enhance industrial performance while supporting a more resource-efficient future.
Manufacturing and Testing Expertise
The Companys manufacturing facilities continue to leverage advanced technology to deliver high levels of efficiency, productivity, and quality across operations. These state-of-the-art plants refect industrial innovation through the integration of advanced machinery, automation, and sustainable manufacturing practices. With a continued focus on environmental responsibility, the facilities are designed to reduce ecological impact while maintaining consistently high standards of performance and reliability.
CGs motor manufacturing facilities are located at three locations in India:
- Low Voltage (LV) Motors manufacturing units in Ahilyanagar (Maharashtra) and Goa
- High Voltage (HV) Motors unit in Bhopal (Madhya Pradesh)
- Stampings units in Ahilyanagar and Goa
- Single-phase motor manufacturing unit in Goa
A Partial Discharge (PD) test facility has been installed in Ahilyanagar to enhance winding insulation reliability in VFD-driven motors by enabling early detection of insulation defects during the manufacturing stage. The system incorporates advanced features such as graphical
representation of key test parameters including resistance, surge, partial discharge, and insulation resistance. All test data is automatically recorded, enabling improved traceability and easier analysis.
PD Testing Instrument
Capacity Expansion
In FY26, CG continued to invest in strengthening its manufacturing capabilities to meet rising demand and enhance operational scalability. With the CAPEX planned in FY26, the Company undertook capacity expansion for LV Motors, HV Motors and Stampings. The outlay was partly utilized to enhance capacity of the LV Motors 80-132 frame range and for further expansion in the 160-355 frame range. This expansion refects CGs commitment to delivering high-quality motor solutions at scale while supporting the growing needs of core industries and infrastructure projects.
R&D and New Product Development
The Motors Business maintained a strong commitment to research and development in the field of industrial motors, with a focus on driving innovation, improving efficiency, and addressing the evolving demands of modern industry.
Products and Service Solutions Developed - High-Efficiency Product and Technology Developments -
FHP business
o Advanced product development initiatives with the development of an ECM/BLDC motor range from 30 W to 200 W for HVAC and industrial applications, alongside sustainability focused innovations such as BLDC retrofit kits for air circulators aimed at improving energy efficiency of installed systems
o In addition, expanded high efficiency portfolio through the development of transformer cooling fan range, supporting efficient thermal management solutions across utility applications
- New products - LV Motors
o Stabilized IE4 efficiency motors up to 7.5 kW across all mounting configurations for market readiness
o Secured UL safety certification for the NEMA Premium series up to 7.5 kW
o Designed and validated IE3 and IE4 nominal efficiency motors across eight ratings in higher frame sizes
o Developed a 132 kW, 4-pole, compressor-duty IE4 motor for high-performance industrial applications
- Sustainability and Predictive maintenance solutions
o CGs Sustainability Solution is built on the principle of circularity and is delivered through qualified professional auditors. It provides end-to-end support ranging from comprehensive energy assessments of existing motor systems to customised buy-back programmes.
o The business also introduced a predictive maintenance and Life Cycle Assessment (LCA)-based diagnostic tool designed to operate with minimal disruption to ongoing operations. Backed by over eight decades of experience in supplying motors and generators across diverse applications and operating environments, these solutions enhance asset reliability while delivering long-term value for customers.
DRIVES AND AUTOMATION Business Performance
CG Drives and Automation Emotron (CG D&A) offers a wide range of drives and automation products, solutions and applications. With production units in India, Sweden and Germany, the company serves Indian, European and export markets through direct sales channels and channel partners. The company remains committed to developing sustainable and energy-efficient solutions across industrial segments, including green energy power solutions.
Manufacturing and Testing Expertise
CG D&A is expanding the capacity of the India production facility to meet increasing demand for standard products in the Export markets, and project-specific solutions in Sweden and Germany to meet the need of tailored solutions for the end customer. The alignment with the CG Motor business unit further enables the company to offer more tailored and value-adding products that address overall energy efficiency and savings requirements.
R&D and NPD
In response to the growing global need for converter solutions that enable businesses to use batteries and renewable energy sources, CG
D&A has invested in research and development to create products that ensure efficient and reliable power with regulated current and voltage in any operating condition.
The division has also introduced Emotron Power Conversion Systems (PCS) tailored for the growing Battery Energy Storage market. These high-power converters provide flexible solutions designed to unlock the full potential of energy storage systems.
The team continues to work on product innovation and R&D projects to enhance and expand its portfolio for different geographical markets in conjunction with the CG Motor Division, with several new product launches planned for 2026 to support further geographical expansion.
Capacity Expansion
The capacity expansion of the India production facility is being undertaken to support the growing demand for standard products and project-specific solutions across domestic and international markets.
Marketing Initiatives by Motors and Drives
The Motors and Drives businesses continued to strengthen customer engagement through focused marketing initiatives aligned with CGs core value of customer centricity. During the year, the businesses participated in key industry events including:
- Compelec, Mumbai, India - A leading electrical and electronics industry exhibition organised by IEEMA, focused on components, systems and technology for the power and industrial sector.
- Cement Expo, Delhi NCR, India - A specialised industry exhibition that brings together stakeholders from the cement manufacturing ecosystem to showcase plant technology, automation and energy-efficient industrial solutions.
- VA-Sveriges Framtid 2026, Sweden - A regional industry platform in Sweden focused on future infrastructure, utility and industrial solutions, bringing together technology providers and customers in the Nordic market.
To build stronger customer relationships, regular customer meets and technical interactions were conducted across regions to improve understanding of application requirements and provide solution- oriented support. In addition, small-group channel partner meets were organised at factory locations to create closer engagement with partners, offer product demonstrations and strengthen collaboration across markets. These initiatives helped reinforce the trust, deepen market presence and further strengthen relationships with customers and channel partners.
Products - Motors
| Product | Range | Industry Application |
| Low Tension Motors and IE2, IE3, IE4 and IE5 efficiency Motors | 0.18 kW to 850 kW | Cement, metal & mining, renewable power, nuclear power, water & wastewater, material handling, sugar, railway, pulp & paper infrastructure, and agriculture, etc. |
| Fractional Horse Power (FHP) Motors/ Single Phase Motors | 0.02 kW to 5.5 kW | Used for all general-purpose applications in domestic, commercial, agricultural, industrial, healthcare and construction segments. |
| Hazardous Area Application Motors (Low Voltage and High Voltage) | 0.37 kW to 12,000 kW | Designed to suit the ignitable atmospheres present in hazardous locations such as Zone 1, Zone 2 or Class 1 Div 1 and 2. |
| High Voltage Motors (Large Industrial Machines) | Up to 12,000 kW | Energy efficient and intelligent motors for various applications in IP23, IP55, IP56 and IP65 enclosures. |
| Stamping and Laminations | Consumer Products to HVDC Generator & Alternators | For industrial motors, alternators, generators, ceiling fan etc., Railway motors, electric vehicle laminations. |
Products - Drives and Automation
| Product | Range | Industry Application |
| Industrial AC Drives (LV&MV) | 0.75 kW to 4000 kW | Used for all industrial segments such as cement, water, metals, oil & gas, marine, sugar, etc. |
| Active Front End AC Drives (AFE ) | 11 kW to 4000 kW | Used for low harmonics and regenerative applications. |
| Soft Starters | 5.5 kW-1000 kW | Industrial applications such as pumps and fans. |
| Power Conversion Systems | Up to 3000 kW | Marine and industrial hybrid electric drive systems, renewable energy, energy storage, hydrogen electrolysis. |
| Industrial Panels | Up to 4000 kW | Customized panel solutions for all type of industrial users. |
| Customized products | 11 kW-250 kW | Completely customized and branded products for diverse applications such as compressors, battery energy storage, pumps, servo drives. |
| Test Benches | Up to 10 MW | Routine type, back-to-back regenerative test setups. |
| Shaft Power Monitor | Up to 999A | Patented technology to protect motors from dry runs, over / under load conditions. |
| Solar Drives | 0.75 kW to 110 kW | Used for renewable energy applications and solar water pumping for agriculture. |
| PLC & HMI | Automation | Automation of the industrial application like packaging, printing, special purpose machines, etc. |
CONSUMER DURABLES
Following its strategic re-entry into the Fast-Moving Electrical Goods (FMEG) segment in 2019, CG continued to strengthen its Consumer Durables portfolio across fans, pumps, water heaters, air coolers, and small domestic appliances, while expanding its presence across retail, e-commerce, and regional markets.
Business Performance
During the year, the business focused on expanding market reach, strengthening channel partnerships, enhancing after-sales service, and increasing penetration across modern trade and digital platforms.
Key highlights included:
- Introduction of 150+ new SKUs across product categories
- Expansion across e-commerce platforms, modern retail, and regional channel networks
- Strengthening of the service network to over 425 authorised service centres
- Expansion of the pumps business across Central and Western India, with deeper penetration in Northern and Eastern markets
- Onboarding of strategic channel partners to strengthen regional market presence
These initiatives improved market visibility, enabled wider channel reach, and enhanced customer engagement across categories.
R&D and New Product Development
The business continued to align product development with evolving consumer preferences, energy efficiency trends, and application- specific requirements.
Marketing and Business Development Initiatives
The business undertook focused initiatives to strengthen brand visibility, channel engagement, and consumer outreach across markets.
Key developments included:
- Expansion of the pumps portfolio with energy-efficient and application-focused solutions across industrial, commercial, and agricultural segments
- Strengthening of the fans and air coolers portfolio through new product introductions across premium and channel-specific categories
- Entry into adjacent categories including air circulators and small domestic appliances to widen the consumer product portfolio
- Securing institutional orders in solar pumping applications, supporting the businesss growing presence in sustainable solutions
Key initiatives included:
- Trade engagement and influencer-led programmes to strengthen channel relationships and improve product awareness
- Retail branding and point-of-sale activations across key markets to enhance in-store visibility
- Expansion of the CG Vishwas programme to strengthen engagement with plumbers, electricians, and installation professionals
- Strengthening digital consumer engagement through social media outreach, seasonal campaigns, and the launch of the CG Care WhatsApp chatbot for customer support and service tracking
These initiatives continue to support CGs long-term growth ambitions
in the Consumer Durables segment through stronger market presence,
enhanced consumer engagement, and expanding channel reach.
Products - Consumer Durables Pumps
| Product | Range | Industry Application |
| Domestic Pumps | Mini Series / Shallow-Well Jet / Openwell | Normal water supply through Direct pipeline - filling storage / overhead tanks. |
| Domestic Pumps / Agricultural Pumps | Submersibles / Monobloc / Openwell pumps | Getting groundwater through borewells to overhead tanks; Getting water through rivers / ponds and borewells. |
| Agricultural Pumps | V4 to V8 Borewell Submersibles | Groundwater lifting for agriculture use (farm irrigation) and drip water / sprinklers applications. |
| Industrial Pumps | V4 Submersible / Monobloc | Building segment (water supply). |
| Industrial Pumps | Fire-Fighting System | Fire-fighting installations. |
| Industrial Pumps | Pressure Boosters / Vertical Multistage Pressure pumps for Commercial buildings, RO Segments. | |
| Industrial Pumps | Monobloc/ Openwell | Fountains |
| Industrial Pumps | Monobloc/ Openwell | Cooling towers |
| Industrial Pumps | Sewage Pumps | Sewage treatment in households / hospitals / hotels / treatment plants & construction sites. |
| Domestic Pumps / Commercial Pumps | Pressure Washer | Car washing, panel washing, floor washing. |
Fans & Appliances
| Product | Range | Industry Application |
| Air Coolers | Desert, Personal, Tower, Window | Residential rooms, small offices, and indoor spaces |
| Water Heaters | Storage, Instant, Immersion | Residential bathrooms & kitchens, small commercial establishments |
| Room Heaters | Halogen, Quartz | Residential rooms and small indoor spaces |
| Electric Irons | Dry Iron | Household use |
| Electric Kettles | Regular and Multi-function Kettle | Household kitchens, hotel rooms, offices |
| Electric Choppers | Dual Blade Chopper | Household kitchens use |
RAILWAYS
Business Performance
The Railways business delivered a strong performance during the year, supported by multiple order wins and continued market expansion across key geographies. The business secured several strategic contracts, reflecting its established position as a trusted provider of reliable and innovative solutions for the railway sector. advanced diagnostic tools, the business offers predictive maintenance backed by data-driven trend analysis. Service offerings include flexible maintenance contracts, real-time equipment monitoring and expert troubleshooting to maximise product and system reliability.
CG continues to maintain certified management systems in compliance with IRIS, ISO 9001, ISO 14001, AAR certification and ISO 45001 standards, ensuring consistent innovation and operational excellence.
This momentum was further strengthened by a broader presence in both existing and new markets, enabling the business to capture emerging opportunities while deepening relationships in priority regions. Supported by operational excellence, strategic collaboration and a customer-focused approach, the business continued to strengthen its position and build a solid foundation for sustained growth in the railways sector.
Traction Machines & Systems (TMS)
The Traction Machines & Systems (TMS) business specialises in a wide range of AC and DC traction motors, traction alternators and customised solutions for self-propelled railway vehicles. With more than three decades of experience in the railways sector, the business has collaborated with original equipment manufacturers (OEMs) in India and international markets, delivering high-efficiency and cost- effective locomotive traction motors and alternators.
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The business developed rewinding and vacuum-pressure impregnation (VPI) capabilities for both epoxy and silicone resins. The AC motor test rig is designed for dynamic evaluation of AC and DC traction motor performance across all specifications. To ensure the highest quality, the business uses rotor bar crack detection, automated TIG welding and precision undercutting equipment. The TMS shop produces high- quality traction coils that are manufactured and rigorously tested inhouse, supported by seamless supply chain management.
The business supports customers from concept design to installation and commissioning, along with field service support. By leveraging
Rail Transportation Traction Electronics
The Rail Transportation Traction Electronics business remains at the forefront of traction electrification, offering state-of-the-art IGBT- based three-phase propulsion systems and locomotive panels. These propulsion systems are built with a modular and scalable design, helping lower complexity, environmental footprint and long-term costs.
Backed by dedicated design and reliability teams in India, the business provides high-performance rail propulsion systems for a range of transportation applications including semi high-speed rail, mass transit, onboard locomotive solutions and underslung solutions for electric multiple units.
The business delivers support across all aspects of system development, from traction and auxiliary converters to high-voltage and battery-powered systems. Rigorous testing ensures every product meets stringent industry standards.
CG adheres to EN 50657 and EN 50128 software standards, with propulsion systems integrating traction converter-inverters, auxiliary converter-inverters and Train Control and Management System (TCMS) for seamless and optimised performance.
Designed for efficiency and future readiness, the businesss traction converters for electric locomotives feature advanced voltage regulation, safety mechanisms and microprocessor-driven switching. The latest Ethernet-based communication and remote diagnostics provide adaptability to evolving railway requirements.
Railway Signalling
The Railway Signalling business offers critical railway signalling components such as signalling relays and point machines, ensuring maximum reliability and safety. The business is one of the oldest and leading providers of railway technology solutions in India.
In addition to signalling relays and point machines, the business manufactures a diverse range of railway electrical panels for goods and passenger locomotives.
Following the acquisition of a majority stake (55.60%) in G.G. Tronics India Private Limited, a company specialising in electronic safety embedded signalling systems including KAVACH for railway signalling, the business received multiple orders for rolling stock onboard and station wayside KAVACH systems, with final cross approvals expected soon.
The integration of the two companies and their complementary capabilities is expected to further strengthen the business and expand its advanced signalling solutions for the railway sector.
As a comprehensive solutions provider for Indian Railways, CG continues to be recognised as a trusted partner in technological transformation, supporting advancements in efficiency, safety and reliability.
Manufacturing and Testing Expertise
The Railways business operates advanced manufacturing facilities at Mandideep and Pithampur in Madhya Pradesh, India. In addition, the business has a dedicated in-house testing facility that complies with both Indian and international standards.
To enhance production efficiency and meet rising market demand, the business expanded capacity during the year. The Rail Transportation Traction Electronics facility was expanded to 1,260 sq m, while load capacity was increased by 500 kW through a new HT substation, enabling a second test bed for IGBT propulsion equipment. A new electronic laboratory has also been set up for product development, testing and assembly to enable high-quality standards.
R&D and New Products Development
The Railways business undertook focused R&D initiatives to enhance product offerings and maintain a competitive position in the market.
Key Developments
- Development of high-performance traction motors and alternators for the U.S. market, including 658 kW and 500 kW variants
- Expansion in the African market with advanced axle cap traction motors
- Successful testing and installation of next-generation traction motors for MEMU applications meeting IEC 60349-2 standards
- Continued development of traction motors for Vande Bharat towards full-scale manufacturing
- Continued development of traction electrics such as traction motors, transformers and battery charging systems among others
- Trailable - 380V AC Point Machine (220 mm throw)
Developed for high-speed meter gauge turnouts with precise locking and detection of individual switch housings, this solution was designed to meet Malaysian Railways requirements, reinforcing CGs presence in global railway infrastructure solutions.
- Advanced SCADA Systems
Advanced SCADA systems were developed for Indian Railways to monitor and control traction power distribution. These systems provide real-time monitoring, improve efficiency and enhance safety while complying with RDSO specifications and IEC 62443 cybersecurity standards.
- ACD Panel (Automatic Control Device Panel)
The ACD panel forms a key part of the IGBT-based propulsion system in modern locomotives, enabling seamless communication between the locomotive operator and control systems for improved safety and operational efficiency.
Marketing and Business Development Initiatives
The Railways business continued to focus on expanding its presence in key markets while strengthening relationships with customers, OEMs and industry stakeholders.
During the year, the business participated in the International Railway Equipment Exhibition (IREE) in New Delhi, where it showcased smart
Products - Railways Traction Machines & System (TMS)
solutions for rolling stock and signalling safety. At the exhibition, the business also highlighted its latest solutions for self-propelled trainsets, including traction converters, auxiliary converters, TCMS, traction motors and advanced predictive maintenance capabilities. The event was a great platform to engage with customers and partners across the railway ecosystem.
POWER SYSTEMS
CGs Power Systems business specialises in Power Transmission and Distribution and the development of integrated power systems with associated service offerings. As a leader in electrical energy management, the Company manufactures a broad range of switchgear and transformer equipment. Additionally, the business delivers turnkey solutions for Transmission and Distribution (T&D) through substation projects and provides comprehensive Engineering, Procurement, and Construction (EPC) services, along with full-spectrum solutions across the value chain.
Key Levers Driving Growth
- The Company has an integrated presence throughout the entire Power Transmission & Distribution (T&D) value chain
- It provides a broad suite of products and solutions that adhere to rigorous national and international standards
- It operates state-of-the-art manufacturing facilities with a well- established record of excellence
- It leverages deep domain expertise and is recognized as a pioneer in technological innovation
- It employs industry-leading engineering practices
- CG consistently ensures punctual delivery and on-time project completion
The Company delivers prompt and efficient after-sales support
TRANSFORMERS BUSINESS Business Performance
The Transformers business delivered a strong performance during the year, supported by export expansion, execution discipline and continued capacity enhancement across both the Power Transformers (T3) and Distribution Transformers (T2) facilities.
Key Highlights Include
- Expanded export presence with a major breakthrough in the U.S. data centre segment, while strengthening the follow-on order pipeline in North America
- Entered new international markets across Europe and Southeast Asia, while securing strategic orders in the oil, gas and aerospace sectors
- Achieved 100% accessory delivery compliance in the Distribution Transformers business, reinforcing execution reliability
- Completed multiple successful short circuit test validations at CPRI, strengthening product performance credentials for critical applications
- Initiated capacity expansion from 40,000 MVA to 65,000 MVA to support rising demand across domestic and export markets
- Maintained record order booking momentum in the utility and industrial segments during the year
- Successfully completed short circuit testing for multiple transformer ratings, further validating design capability across product platforms
- The Power Transformers business achieved its highest- ever manufacturing output, surpassing previous production milestones during the year
- Expanded the product range with higher-rating and higher- voltage transformers, supporting entry into more demanding applications
- Strengthened presence in the transportation segment through supply of power and traction transformers for metro and railway applications, including new product supplies for advanced train platforms
- Recorded the highest-ever locomotive transformer dispatches during the year, reflecting improved operational throughput
- Undertook a facility modernisation at the T2 division to enhance manufacturing infrastructure and workplace efficiency
These developments strengthened the Transformers businesss position across domestic and international markets while reinforcing its capability to support evolving customer requirements.
| Product | Product details |
| AC Traction Motors | Electric Loco, Diesel Loco, Trainset/Metro/EMU/MEMU and DEMU |
| DC Traction Motors | Electric Loco, Diesel Loco, DEMU, DETC SPIC / Other Self-propelled Vehicle |
| Traction Alternators | Diesel Electric Loco, DEMU, DETC SPIC / Other Self-propelled Vehicle |
| Complete Electrics | Includes integrated power pack with traction alternator, traction motors, control equipment, rectifier, auxiliary alternator for Diesel Electrics Tower Car (DETC) with on board and underslung electrics, Self-Propelled Inspection Car (SPIC) & Diesel Electric Multiple Units (DEMU) |
| Rail Transportation Traction Electronics (RTTE) | |
| Product | Product details |
| IGBT Based Traction and Auxiliary Converters | For 3 Phase Electric Locomotive |
| IGBT Based Composite Converter | For 3 phase Electric Locomotive - under field trials |
| Vehicle Control Unit (VCU) and Control Panels | For 3 Phase Electric Locomotive |
| Propulsion System and electrics | For Self-Propelled train such as MEMU/ Trainset |
| Auxiliary converters | For DEMU, MEMU |
| Train Control and Management System (TCMS) | For 3 Phase Electric Loco/MEMU/DEMU |
| Railway Signalling | |
| Product | Product details |
| Q-Type Signalling Relays | |
| Electric Point Machines | Operating Voltage: 110 V DC & 380 V AC Non-trailable: 143 mm / 220 mm throw Trailable: 175 mm / 220 mm throw Non Trailable: Dual Gauge Point Machine 143 mm / 220 mm throw |
| DC Series Motor | For electric point machines |
| DC Series Motors IP67 | 160 V & 400 V AC for electric point machines |
| Back Drive | Secondary drive with 220 mm throw point machine - for export market |
| Rail Traction SCADA | |
| BLDC Industrial Fans | |
| Product | Product details |
| BLDC Carriage Fans | AC, DC |
| Transformer Cooling Fans | DC |
| Control Panels for Locomotives | |
| Product | Product details |
| Switch Board Panels | For Locomotives - SB1, SB2, HB1, HB2, Cubicle F |
| Filter Cubical Panels | For Locomotive |
Manufacturing and Testing Expertise
The Companys transformer manufacturing facilities are strategically located in Malanpur, Madhya Pradesh, specializing in distribution, small power, dry-type, and locomotive transformers, while its Bhopal unit focuses on power transformers. These facilities are certified to globally recognized standards, including ISO 9001, ISO 14001, ISO 45001, ensuring excellence in quality, safety, and environmental management.
To uphold the highest industry standards, the Company operates advanced, fully automated Transformer Testing Facilities accredited by NABL (National Accreditation Board for Testing and Calibration Laboratories). These cutting-edge facilities are designed to meet stringent Indian and international standards, supported by a team of skilled experts. Leveraging sophisticated software and testing technologies, they guarantee precision, reliability, and comprehensive performance validation of transformers. Further, during the year, the Company undertook significant capacity expansion to meet rising demand in domestic and international markets.
Following the previously approved brownfield expansion for power transformers from 18,000 MVA to 35,000 MVA, an additional
5.000 MVA capacity was approved in October 2024, taking the total installed capacity to 40,000 MVA. This was further enhanced to
65.000 MVA using Lean methods.
To further strengthen market leadership, a greenfield expansion of
45.000 MVA at an investment of 712 Cr (net of taxes) was also planned to target a total manufacturing capacity of 1,10,000 MVA for power transformers by FY28. This will enhance the Companys ability to cater to increasing transformer demand, including exports.
R&D and New Products Development
The Transformers business continued to strengthen its engineering capabilities during the year through focused research, product development and strategic technical collaborations across both the Power Transformers and Distribution Transformers businesses.
- Research and Development
The business continued to invest in research and engineering capability enhancement to improve product performance, manufacturing efficiency, and application readiness. Key initiatives included:
o Upgraded 765 kV and 400 kV autotransformer designs to improve workmanship and ease of manufacturing o Enhanced 765 kV and 400 kV reactor designs to improve manufacturability and operational performance o Strengthened engineering capabilities at the Distribution Transformer business for design and development of transformers up to 220 kV class o Expanded engineering capabilities for development of railway transformers within the Distribution Transformer business
o Continued development of Variable Shunt Reactor technology
up to 400 kV class for advanced utility applications
o Advanced the design and development of special coupling transformers for STATCOM applications to support grid reliability
- New Product Development
The business introduced and advanced several new products to support evolving customer requirements in the utility and industrial sectors. Key developments included:
o Development of 50-100 MVA, are 330 kV Variable Shunt Reactors
o Development of 500 MVA, 765 kV single-phase tap-less autotransformers
o Expanded focus on transformers for Indian Railways
electrification and traction applications
o Development of Variable Shunt Reactors for utility
applications, offering a flexible alternative to multiple conventional shunt reactors
Major Partnerships and Alliances
The business further strengthened its technical ecosystem through strategic alliances with global engineering specialists, technology partners, and testing institutions. Key collaborations included:
- Engagement with Lazariev Laboratories, Estonia for specialised performance evaluation expertise
- Collaboration with Softteam Group for critical designs and advanced product development
- Partnerships with leading FEA and simulation technology providers to strengthen design validation capabilities
- Continued association with technical partners for standards, engineering publications and design support
- Collaboration with accredited testing institutions including CPRI, NHPTL and ERDA for product type testing and material validation to ensure performance reliability
- These initiatives strengthened the businesss innovation capabilities while supporting the development of advanced transformer solutions for domestic and international markets.
Capacity Expansion
- Increased capacity in the Power Transformers (T3) business from
40,000 MVA to 65,000 MVA
- Expanded capacity in the Distribution Transformers (T2) business from 5,000 MVA to 9,900 MVA
- Overall transformer manufacturing capacity increased from 42,400 MVA to 74,900 MVA during the year
SWITCHGEAR BUSINESS
The Company offers a comprehensive range of switchgear products. Its Extra High Voltage (EHV) portfolio includes SF6 Circuit Breakers (available in live and dead tank configurations), Gas Insulated Switchgears (GIS), Oil Filled Current Transformers (CT), Inductive Voltage Transformers (IVT), Capacitive Voltage Transformers (CVT), Surge Arresters, Off Load Disconnectors, and Condenser Bushings. Additionally, the Company provides Medium Voltage (MV) Switchgears, such as Indoor and Outdoor AIS, MV GIS, Ring Main Units, Vacuum Interrupters, Compact Substations, Numerical Protection Relays, Auto-Reclosers, Vacuum Contactors, Lightning Arresters, and Isolators. A full range of Instrument Transformers and Bushings is also available.
Products - Switchgears
| Product | Range | Industry Application |
| MV Switchgear | Indoor Air Insulated Switchgears (AIS) VCB panels 3.3 kV to 33 kV | Utilities, industries, power plants, railways, infrastructure, projects, renewables, smart city projects, data centres |
| Outdoor Breakers up to 33 kV | ||
| Single Pole 25 kV Breaker | ||
| Roof Bushing Kiosk | ||
| Gas Insulated Switchgear (GIS) up to 36 kV Class | ||
| Indoor/Outdoor Ring Main Units (RMU) up to 36 kV Class | ||
| Compact Substations | ||
| Relay and Automation | CG Series Current and Voltage Numerical Protection Relay | Utilities, industries, power plants, railways, infrastructure, projects, renewables, smart city projects data centres |
| Self-Powered Relay for Ring Main Unit (RMU) | ||
| Aegis Series Feeder, Transformer and Motor Protection Relays Auto-reclose Relay | ||
| Feeder Remote Terminal Unit (FRTU) for RMU automation | ||
| EHV Switchgears | Current Transformers - 33 kV to 800 kV, up to 63 kA | Utilities, industries, power plants, railways, infrastructure, projects, renewables, smart city projects data centres |
| Oil Impregnated Paper Transformer Bushings 33 kV to 800 kV, 63 kA | ||
| Resin Impregnated Paper Transformer Bushings 33 kV to 170 kV, Up to 63 kA | ||
| Inductive Voltage Transformers 33 kV to 550 kV | ||
| Capacitor Voltage Transformers 66 kV to 1200 kV | ||
| Grading Capacitors up to 800 kV | ||
| Surge Arresters up to 1200 kV Class 5 | ||
| SF6 Circuit Breakers 36 kV to 765 kV | ||
| Gas Insulated Switchgear 66 kV to 245 kV (EHV GIS) | ||
| Hybrid GIS 245 kV | ||
| Dead Tank Breaker 72 kV | ||
| Surge Arrester for Gas Insulated Switchgear Application 66 kV to 245 kV | ||
| Vacuum Interrupters up to 72.5 kV | Vacuum Interrupters 690V to 72.5 kV | MV switchgear manufacturers, power transformer manufacturers, T&D utilities, industries, renewable sector & railways track side substation |
| Vacuum Contractors and Capacitor Switches up to 36 kV | ||
| Auto-Recloser and Sectionalisers up to 36 kV | ||
| Power Voltage Transformer 72.5 to 145 kV, up to 100 KVA | ||
| Power Quality Solutions | Automatic Power Factor Correction System | Transmission and distribution utilities, water supply schemes, steel, cement, process industries, railways and refineries |
| Fixed Capacitor Banks up to 36 kV | ||
| Static VAR Compensator (STATCOM) up to 440 V | ||
| Passive harmonic filter up to 33 kV | ||
| MV Electrical Soft Starter up to 12 kV, 20 MW | ||
| Railways Loco Head and Trackside Products | 25 kV Primary Voltage Transformer (PVT) | Railways loco head & trackside S/Stns. |
| 35 kV High Voltage Bushing | ||
| 27.5 kV Vacuum Interrupters for Loco head and Trackside VCBs |
Business Performance
The Switchgear division maintained strong operational efficiency, with highest capacity utilisation reaching peak levels. Continuous improvement through LEAN initiatives and the addition of advanced equipment, such as the Helium Leak Detection Machine for SF6 gas systems, Robotic welding machine, Partial Discharge Testing Set-up, Additional CB Analysers have enhanced manufacturing capabilities. Notably, new product lines such as RMUs and MV GIS gained significant traction in the market, resulting in growing sales which were also supported by the Companys strong dealer network.
Technological progress remained a key driver, with several new products developed, type tested and approved. CG continues to hold a leading position as the only Indian manufacturer offering 800 kV bushings compliant with seismic Zone V requirements. The indigenous development of RIP bushings up to 145 kV was successfully achieved, and a new facility in Nashik is being established for 245 kV to 420 kV RIP bushing production.
Key Highlights
- Supply highest number of 800 kV bushing in a financial year
- Major supplier of 400 kV Circuit Breaker, CT & IVT, 170 kV circuit breaker and CT & CVT to Europe, covering Greece, Italy and Ukraine.
- Received single largest order worth Rs.244 Cr from M/s Techno Electricals for EHV Equipments
- Received single largest order of 800 kV & 400 kV OIP Bushing worth Rs.75 Cr from PGCIL
- Successfully executed 220/66kV GIS Substations for GETCO
- Major type tests completed for key products including:
o 145 kV, 3150 A, 40 kA, SF6 Breaker
o 170 kV, 3150 A, 40 kA, SF6 Breaker
o Grading Capacitor for 550 kV CB o 245 kV Compact IVT
o 420 kV Single Coil IVT
o 420 kV, 2000 A, OIP Bushing as per EN Standard
o 170 kV, 1250 A, OIP Bushing as per EN Standard
o 420 kV, Polymer CVT
o 52 kV, 3150 A, 300 BCT RIP Bushing o 145 kV 1250 A, 500 BCT RIP Bushing o 33 kV, 25 KA, 630A, Ring Main Unit o 40.5 kV, 40 KA, Double Bus GIS 600 mm wide E2 C2 IAC
o Internal Arc Test - 11 kV Indoor AIS - 26.3 KA for 1Sec
Notable Order Executions
- SF6 Circuit Breaker, ITR (400 kV and 245 kV) Adani Mahan Project
- OIP Bushing (800 kV) PGCIL
- SF6 Breaker (50 kV, 145 kV & 245 kV) Railways
- CVT (145 kV & 245 kV) RRVNL
- 11 kV Indoor AIS panels in BEST, Mumbai
- 11 kV & 33 kV Indoor AIS panels in BPCL, Irugur-Devangonthi pipeline project
- 36 kV RMU in IDA, Indore
- 36 kV GIS in Tunusia & in PTCUL, Uttarakhand
Manufacturing and Testing Expertise
CGs Switchgear manufacturing facilities are strategically located in Maharashtra with Nashik complex having specialization in EHV and MV Switchgears along with Instrument transformers, Condensor Bushing and Lightening arrestors manufacturing. The other unit at Chhatrapati Sambhajinagar, Maharashtra, India manufactures HV instrument transformer and Power Quality products along with Vacuum Interrupters. These facilities are certified to globally recognised standards, including ISO 9001, ISO 14001, ISO 18001 and OHSAS 18001, ensuring excellence in quality, safety, and environmental management.
To uphold the highest industry standards, the Company operates advanced, fully automated Switchgear Testing Facilities accredited by NABL (National Accreditation Board for Testing and Calibration Laboratories). These cutting-edge facilities are designed to meet stringent Indian and international standards, supported by a team of skilled experts. Leveraging sophisticated software and testing technologies, they guarantee precision, reliability, and comprehensive performance validation of switchgears.
Further, during the year, the Company undertook significant capacity expansion to meet rising demand in both domestic and international markets.
To further strengthen Switchgear Business, a Greenfield expansion CAPEX is approved by Board in December 2025 of Rs.748 Cr which will double the Switchgear manufacturing capacity for all product lines. The factory is projected to be operational in a phased manner with Phase I being operational from April 2027 and Phase II from April 2028.
Augmenting Manufacturing Expertise
Several initiatives were undertaken to strengthen manufacturing expertise. New capacity expansion projects included setting up winding machines for 800 kV Instrument Transformers and Bushings, an external flooding station for 245 kV CTs, and approved capacity enhancements for RMUs and MV GIS. Additionally, a new facility was initiated for 800 kV Circuit Breaker manufacturing.
Partnerships and Alliances
- Strategic collaborations were formed for the manufacturing of composite insulators used in Instrument Transformers, Surge Arresters, and RIP Bushings.
- Contract manufacturing was initiated for Instrument Transformer sub-assemblies, along with development partnerships for casting components and hollow composite insulators.
- In the sustainability space, development of a 36 kV GIS using an eco-friendly alternative to SF6 is underway through alliances with specialized gas manufacturers.
- Additionally, production and testing of Dead Tank Breakers commenced for the North American market.
R&D and New Product Development
The business continued to advance its technology leadership with a strong focus on new product development across MV, HV, and EHV segments, reinforcing CGs commitment to reliable, future-ready power systems. The new products developed during the year included of.
Medium Voltage Segment
- 40.5 kV, 40 KA, Double Bus GIS 600 mm wide, Class E2 C2
- 40.5 kV, 40 KA, Double Bus GIS, IAC AFLR 1Sec, 600mm wide
- 24 kV, 21 KA, 630 A, Switch, E2 class (RMU)
- 36 kV, 25 KA, 630 A, E3 class, Ring Main Unit
- 12 kV, 26.3 KA, 1250 A, Indoor GIS, 500 mm wide
Extra High Voltage Segment
In the Extra High Voltage segment, CG developed 800 kV and 420 kV SF6 Gas Circuit Breakers with enhanced creepage distance and composite insulators. These products are positioned for both domestic and international markets, including India and Europe. Recent developments include:
- Successfully designed, developed, and type-tested 145 kV and 170 kV Gas Circuit Breakers for the European utility ENEL in accordance with IEC 62271-1 and IEC 62271-100 standards. The breakers were engineered to meet specific non-standard requirements, including INAIL pressure vessel certification, under-voltage coil provision, life cycle assessment (LCA), and BIM modelling compliance. This development supports geographical expansion and strengthens our presence in the European market. o Grading Capacitor for 550 kV Circuit Breaker
o 245 kV Compact IVT
o 420 kV Single Coil IVT
o 420 kV, 2000 A, OIP Bushing as per EN Standard
o 170 kV, 1250 A, OIP Bushing as per EN Standard
o 420 kV, Polymer CVT
o 52 kV, 3150 A, 300 BCT RIP Bushing o 145 kV 1250 A, 500 BCT RIP Bushing
35 kV Loco Head Bushing
A 35 kV loco head bushing was successfully developed for railway applications in India, enabling high-voltage connections to locomotive transformers through loco grounded walls. The bushing meets stringent Indian railway technical specifications and completed type tests as per CLW specifications in line with requirements given in IEC standard 61869 and EN 61373.
High Current OIP Bushing
To support Indias growing renewable energy integration and reactive power needs, CG has developed high current condenser bushing for the transformers used in reactive power compensation system like STATCOM coupling transformer. Condenser bushings are vital components of the power transformers to carry the rated current safely in circuit.
Marketing and Business Development Initiatives
The Transformers and Switchgears businesses continued to strengthen market visibility, customer engagement, and business development efforts during the year through focused participation in industry forums, technical knowledge-sharing platforms, customer interactions, and sector-specific outreach programmes. These initiatives supported deeper engagement with utilities, EPC contractors, consultants, infrastructure developers, and industrial customers across key growth segments.
- Strengthened engagement in the data centre ecosystem across India and the United States, supporting opportunities in mission- critical power infrastructure and advanced transformer solutions
- Expanded outreach across renewable energy, utilities, EPC, and industrial segments to address growing demand arising from energy transition, grid expansion, and digital infrastructure investments
- Participated in Trafotech, organised by IEEMA, to showcase transformer capabilities and engage with customers, consultants, utilities, and EPC contractors
- Conducted targeted customer interactions and technical engagements to support specification-led opportunities and strengthen strategic relationships
- Participated in the Workshop on New Trends and Technologies in EHV Substations organised by MSETCL, showcasing the development journey of RIP Bushings to utility representatives and industry stakeholders
- Participated in SWICON 2025, a conference on switchgear and controlgear organised by IEEMA, to showcase innovations, share industry insights, and explore business opportunities
- Engaged with leading consultants through the MEP Consultant Meet 2025, strengthening collaboration and awareness of advanced electrical solutions
- Conducted technical seminars, training programmes, and customer engagement initiatives to support specification-led selling and reinforce technical leadership
These initiatives helped strengthen customer relationships, enhance market presence, and reinforce CGs position as a trusted partner for advanced power infrastructure and grid solutions across domestic and international markets.
SEMICONDUCTOR BUSINESSES AXIRO - Business Performance
CGs subsidiary Axiro continued to establish itself as a high-performance semiconductor design company focused on RF and connectivity solutions. During the year, the company reported a top line of $53.7 million, reflecting steady progress in customer engagements and product deployments across global markets.
Building on a strong legacy of millions of chips shipped globally and a rich portfolio of proven designs, Axiro continues to strengthen its position as a trusted supplier to leading communication system providers.
The Company remains committed on high-growth segments, with a strategic focus on targeting applications such as wireless infrastructure and satellite communication, while exploring adjacent opportunities in aerospace & defence and high-speed interconnect.
Design, Foundry and Testing Ecosystem
As a fabless semiconductor design company, Axiro operates through a robust global ecosystem of foundry and OSAT (Outsourced Semiconductor Assembly and Test) partners. The company leverages advanced process technologies across CMOS, GaAs, GaN, SiGe, and RF-SOI platforms to support a wide range of high-performance RF and connectivity applications.
This partner-led model enables Axiro to ensure scalability, quality, and access to leading-edge manufacturing and testing capabilities, while maintaining operational flexibility and cost efficiency. Through close collaboration with its partners, the company ensures rigorous validation, reliability, and performance standards across its product portfolio.
R&D, NPD and OEM (Original Equipment Manufacturers)
Axiros research and development efforts are centered around two primary product lines: RF front-end components for telecom infrastructure and advanced solutions for satellite communications. Within the telecom segment, the company has initiated early-stage R&D aligned with emerging 6G standards, aimed at securing a time- to-market advantage in next-generation connectivity technologies.
In the telecom RF front-end domain, Axiro is advancing the development of Gallium Nitride (GaN)-based power amplifiers, which are critical to high-performance RF systems. These efforts are focused on delivering best-in-class output linear power and efficiency. Complementing this portfolio, the company continues to enhance its RF signal chain offerings, including transmit gain blocks, high-linearity switches, and low-noise amplifiers (LNAs), with ongoing improvements in linearity, switching speed, settling time, and power efficiency.
In parallel, Axiro is developing wideband low-noise amplifiers using Gallium Arsenide (GaAs) processes to address evolving performance requirements in communication systems.
In the satellite communications domain, the companys R&D initiatives are focused on beamforming solutions across X-band, Ku-band, and Ka-band frequencies. These technologies support a wide range of applications, including radar systems, unmanned aerial platforms, satellite communication, and aerospace and defense systems, reinforcing Axiros positioning in high-growth, mission-critical markets.
Capability Expansion
Axiro operates as a fabless semiconductor design company, leveraging a global network of foundry and OSAT partners for manufacturing, assembly, and testing. Capacity expansion is therefore driven through strengthened engagement with these partners, enabling scalable production, flexibility, and access to advanced process technologies in line with growing market demand.
In parallel, the company has significantly expanded its internal capabilities, growing its team from 77 employees to over 140 during the year. This expansion refects Axiros continued investment in R&D, engineering, and business functions to support future growth and innovation.
Marketing and Business Development Initiatives
Axiro continued to strengthen its market positioning through targeted customer engagement and active participation in industry platforms. The company participated in key events such as India Mobile Congress (IMC) 2025 and SEMICON 2025, leveraging these forums to showcase its product portfolio and engage with global stakeholders.
Products
| Product Category | Range / Key Offerings | Industry Applications |
| Power Amplifier Modules (PAMs) | High-efficiency RF modules, GaN-based solutions, Bias Controllers | Wireless Infrastructure, Aerospace & Defense, Satcom |
| RF Amplifiers | Driver, Interface, and Low Noise Amplifiers | Telecom Infrastructure, Radar, Satcom |
| Variable Gain Amplifiers (VGA) | Wide dynamic range amplifiers | Wireless Systems, Test & Measurement |
| Digital Step Attenuators (DSA) | Glitch-Free\u2122 precision attenuators | RF Signal Chains, Base Stations |
| RF Switches | High linearity, low loss switching solutions | Telecom, Defense, Radar |
| Mixers | RF frequency conversion solutions | Wireless Infrastructure, Satcom |
| Beamforming ICs | mmWave and phased-array ICs | 5G mmWave, Satcom, Radar |
| Up/Down Converters | High-frequency signal conversion ICs | Satellite Communication, Radar |
| Wi-Fi FEMs | Wi-Fi 6/7 front-end modules | Consumer Electronics, Enterprise Networking |
| RapidWave\u2122 Modems | 60GHz mmWave modems | Fixed Wireless Access, Smart Cities |
| RapidIO Solutions | High-speed interconnect switches and bridges | Data Centers, Industrial Systems |
The company also enhanced its digital presence through its LinkedIn platform, which has seen significant growth in engagement and follower base, emerging as a key channel for thought leadership and brand visibility.
In addition, Axiro undertook initiatives to improve its website experience, enhancing content depth, usability, and overall engagement. These efforts have collectively contributed to strengthening brand visibility and supporting business development across global markets.
CG Semi: Indias Semiconductor Packaging Journey Begins
The year marked a defining milestone for CG Power as CG Semi, its semiconductor assembly and test subsidiary, inaugurated its first manufacturing facility (G1) at Sanand, Gujarat, on August 28, 2025. This makes CG Semi one of the earliest OSAT operations to be established in India, reflecting the Groups commitment to participating in the countrys strategic push toward domestic semiconductor manufacturing.
The G1 facility is designed to deliver turnkey semiconductor packaging and test solutions across a range of industry-standard package types, serving end markets including industrials, automotive, telecom, and IoT. CG Semis processes are built to Japan-led quality standards, with Renesas Electronics Corporation serving as our technology partner.
A landmark achievement followed swiftly after inauguration: CG Semi successfully completed qualification with a leading global Integrated Device Manufacturer (IDM), clearing rigorous industry reliability and yield standards on its first attempt. This accomplishment validates the quality of our processes, equipment, and team. Mass production for this customer is expected to commence in FY27, marking CG Semis formal entry into the global semiconductor supply chain.
CG Semi is on track with the construction of its larger G2 facility, also at Sanand, which will significantly expand capacity and package breadth. With a team carrying over 1,000 years of combined semiconductor industry experience, and a quality roadmap that includes automotive- grade certifications, CG Semi is building the foundation to become a trusted, globally competitive OSAT partner - and a meaningful contributor to Indias semiconductor self-reliance ambitions.
EXPORTS STRATEGY AND GLOBAL MARKET EXPANSION
CG continued to strengthen its export strategy during the year through focused market expansion, deeper customer engagement, and enhanced local market presence across key international regions. The Company maintained a strategic focus on high-growth markets across the EMEA (Europe, Middle East and Africa), Southeast Asia, and North America, while increasing participation in utility, infrastructure, industrial, transportation, and digital infrastructure projects globally.
The Transformers business deepened its international presence through expanded engagement with utilities, data centres, consultants, and EPC customers across North America, the Middle East, Africa, and Southeast Asia. The business strengthened local partnerships, enhanced supply chain capabilities, and increased participation in consultant-led and tender-based opportunities to support long-term growth in energy infrastructure, oil and gas, and digital infrastructure segments.
The Switchgear business strengthened its global footprint through successful entry into new international markets including the Middle East, Europe, and the United States. The business also expanded its export-oriented portfolio through product approvals and development of market-specific solutions aligned with global utility and infrastructure requirements.
The Motors & Drives business continued to expand its international footprint across the EMEA, Southeast Asia, and the Indian subcontinent through focused market development initiatives and strengthened channel partner networks. The Drives business further enhanced regional reach through direct sales offices in Morocco and South Africa, improving customer proximity and responsiveness across key African markets.
The Railways business advanced its export growth strategy by strengthening its advanced signalling solutions portfolio for Southeast Asia, while expanding new product offerings for the U.S. and African markets, aligned with its strategy to deepen participation in modern global rail infrastructure systems.
The Semiconductor design business (CGs subsidiary, Axiro) continued to focus on expanding its footprint across North America, Europe, and Asia. The company continues to engage with leading OEMs and system integrators, leveraging its differentiated RF portfolio and deep design expertise.
With global R&D presence and strong customer relationships, Axiro is well positioned to drive export-led growth across key applications such as telecom infrastructure, satellite systems, and advanced connectivity platforms.
Collectively, these initiatives continue to strengthen CGs global positioning, diversifying its international revenue base, and creating a scalable platform for sustained export-led growth across businesses.
DRIVING OPERATIONAL EFFICIENCY AND EXCELLENCE
CG continued to strengthen operational efficiency across businesses through focused initiatives aimed at improving manufacturing efficiency, quality performance, cost competitiveness, and scalable growth readiness.
The Switchgear business strengthened manufacturing and operational capabilities through integration of advanced helium leak detection systems for SF6 gas testing, enhancing in-house testing and quality assurance capabilities. Operational efficiencies were further supported through design optimisation, alternate sourcing strategies, import substitution initiatives, and supplier rationalisation, contributing to improved cost competitiveness, reduced lead times, and enhanced procurement effectiveness.
The Motors business advanced operational efficiency through streamlined product platforms based on a mass-customisation approach, enabling improved alignment with customer requirements while enhancing manufacturing flexibility. Focused quality interventions contributed to improved First Pass Yield (FPY), while dedicated Project Management and Application Engineering teams strengthened execution responsiveness and customer support capabilities.
The Drives business continued to enhance its advanced power conversion capabilities through modular converter solutions supporting green energy and battery energy storage applications. Designed for scalable and flexible deployment, these solutions support applications such as peak shaving, load shifting, bidirectional power flow, and grid compliance across industrial, marine, and energy infrastructure applications.
For the Semiconductor business (Axiro) , a key milestone was the successful transition from Renesas, following which Axiro established independent operations across core functions, including supply chain, systems, and business processes. The team, has since built its own end-to-end supply chain framework, enabling greater control, agility, and responsiveness to customer requirements. These efforts, combined with ongoing process improvements, have strengthened operational resilience and positioned the company to support scalable growth.
CG also strengthened its Operational Excellence journey through CG EDGE initiatives focused on Lean Manufacturing, Structured Problem Solving (SPS), Daily Management (DM) systems, and process innovation. These initiatives enhanced productivity, improved throughput, reduced operational bottlenecks, and strengthened safety across EHV manufacturing operations.
Some of the key initiatives undertaken for operational excellence
powered by our operational rhythm CG EDGE include:
- Motors
o Reduced quality defects at the test bed by 34% through Simple Problem Solving (SPS) approach
o Achieved a 53% reduction in lead time for A3 range motors by driving Kaizen initiatives across the Enquiry-to-Dispatch process
o Improved productivity by 24% in the M1 plant and 15% in the M3 plant through effective Daily Management practices
- Drives
o Achieved the highest-ever monthly sales in April 2026 by enhancing on-time delivery and strengthening material availability for production through Simple Problem Solving (SPS) and Daily Management practices.
- Transformers
o The Transformer (T3-Power Transformers) plants Lean journey under the CG EDGE initiative has significantly accelerated capacity enhancement from 35,000 MVA to
65,000 MVA through a culture of continuous improvement and Kaizen-led transformation. Focused execution through process improvements, horizontal deployment, layout optimization, and 3P initiatives has enabled sustainable productivity gains and operational efficiency. The initiative has not only strengthened manufacturing capability but also enhanced employee engagement and problem-solving culture across all levels.
- Switchgears
o Implemented Lean Daily Management Boards across functions to improve operational rhythm, proactive decision-making, and cross-functional coordination
o Enhanced manufacturing capacity through debottlenecking initiatives, including autoclave expansion from 24 units/ month to 36 units/month
o Deployed Simple Problem Solving (SPS) methodology in 800kV CT manufacturing, resulting in: s> Reduction in insulation cycle time from 216 hours to 168 hours ( 23% improvement)
» 20% improvement in testing efficiency through
optimized HV testing setups
» Foundation established to scale 800kV CT production from 2 units/month to 6 units/month.
o Conducted 3P (Production Preparation Process) workshops focused on crane-less manufacturing and waste elimination, leading to:
o Increase in EHV pole assembly capacity from 12 to 20.4 equivalent Breakers/day
o 63% reduction in spare mechanism testing cycle time (462 min to 170 min)
o 39% increase in porcelain testing throughput
o Significant reduction in crane dependency, WIP, and unsafe handling operations.
The Company continues to drive operational excellence through technology-led process improvements, capability enhancement, quality focus, and supply chain optimisation initiatives across businesses.
ENVIRONMENT, HEALTH & SAFETY (EHS) INITIATIVES
CG continued to strengthen its Environment, Health & Safety (EHS) framework through focused initiatives aimed at enhancing workplace safety, operational discipline, employee awareness, and sustainable manufacturing practices across businesses. The Company maintained a strong focus on proactive risk management, regulatory compliance, and continuous improvement, supported by a strict zero-tolerance approach towards unsafe acts and conditions.
To further embed safety into everyday behaviour, CG launched the company-wide campaign Safety ke Saath, Zero Compromise,
reinforcing a strong safety-first mindset across operations. As part of this initiative, the Company also introduced Suraksha Saathi (Safety Buddy) - a friendly and relatable mascot designed to promote safety awareness through positive engagement, encouraging employees to adopt safe practices through care, collaboration, and shared responsibility rather than enforcement alone.
CG also continued to strengthen its journey towards an interdependent safety culture, where employees actively look out for both their own safety and that of their colleagues, supported through behavioural safety programmes, leadership engagement, regular reviews, and continuous communication.
Transformers
- Strengthened safety governance through implementation of Golden Life-Saving Rules and supervisor-led safety standard checklists
- Introduced Safety Quadrant processes for safer manpower deployment and workstation planning
- Reinforced safe behaviour and accountability through Red/ Green Card initiatives and regular toolbox talks across shopfloor operations
- Integrated safety performance reviews into Daily Management Board discussions to improve leadership visibility and corrective action tracking
Switchgears
- Strengthened safety management through daily safety oaths, toolbox talks, and weekly safety observation audits across operations
- Implemented engineering and administrative controls including crane-less operations, work permit systems, lifting plans, safety interlocks, biometric access systems, and machinery safeguarding
- Enhanced emergency preparedness through mock drills, firefighting training, AED deployment, and trained first aid responders
- Continued health and safety awareness initiatives through EHS inductions, Behaviour-Based Safety programmes, digital safety kiosks, and workplace health camps
Motors & Drives
- Continued focus on achieving a zero-harm workplace through structured safety governance and Behaviour-Based Safety (BBS) initiatives across manufacturing operations
- Conducted 2,750 manhours of EHS training covering areas such as chemical handling, working at height, permit-to-work systems, PPE usage, and firefighting
- Implemented theme-based safety observation rounds across critical operational areas including material handling, electrical systems, conveyors, and chemical storage
- Maintained zero non-compliance across applicable statutory and legal EHS requirements across motor plants
Railways
- Strengthened safety awareness through visual induction systems across manufacturing units for employees and visitors
- Continued competency development programmes for safe operation of Powered Industrial Vehicles (PIVs) across facilities
- Enhanced workplace safety through focused road safety awareness initiatives and strict monitoring of PPE compliance across operations
Through sustained focus on safety culture, employee engagement,
operational discipline, and leadership commitment, CG continues to
strengthen its journey towards building a safety-first culture and a
resilient and zero-harm workplace across businesses.
INDUSTRY 4.0 AND DIGITAL TRANSFORMATION
CG continued to accelerate its Industry 4.0 and digital transformation journey through focused initiatives across manufacturing, engineering, supply chain, enterprise analytics, and customer engagement. These initiatives are aimed at enhancing operational visibility, improving decision-making, enabling smarter manufacturing processes, and strengthening future-ready digital capabilities across businesses. Transformers
- Enabled paperless shopfloors, automated data capture, and realtime monitoring of critical operations
- Strengthened end-to-end work order visibility and integrated engineering workflows linked to customer specifications
- Enhanced procurement intelligence and planning through digital supply chain tools and analytics
- Leveraged AI and GenAI-based solutions for enquiry analysis, document intelligence, and operational decision support
Switchgears
- Implemented automated design-linked manufacturing workflows to improve execution efficiency
- Introduced QR-based digital product manuals to enhance accessibility and support paperless operations
- Strengthened engineering data management through upgraded software and digital tools
- Enhanced relay testing automation and enterprise-wide digitalisation across shopfloor and office operations
- Deployed CRM platforms to improve customer data management and sales process efficiency
Motors
- Deployed CRM platforms to improve customer data management and sales process efficiency
- Strengthened engineering data management through upgraded software and digital tools
Drives
- Advanced intelligent software-enabled converter solutions supporting grid stability and flexible energy integration
- Strengthened digital power management capabilities across industrial and energy infrastructure applications
Railways
- Advanced paperless manufacturing and automated operational data capture initiatives
- Improved workflow visibility and execution tracking across engineering and supply chain processes
- Leveraged AI-enabled analytics and digital tools to strengthen operational responsiveness and decision-making
Semiconductor (Axiro)
- Leveraged advanced digital engineering platforms including EDA tools and system-level simulation
- Strengthened data-driven workflows and development processes to support high-quality design and faster validation cycles
- Collectively, these initiatives will continue to strengthen CGs digital manufacturing ecosystem, enabling smarter operations, improved agility, and scalable future-ready capabilities across businesses.
DRIVING CHANGE THROUGH CGS ESG JOURNEY
This year, Sustainability at CG was formally embedded in its Purpose Statement Pioneering innovation for a sustainable future and its Values of Customer Centricity, Humility, Ownership Mindset, integrity and Respect . This was rolled out as a company-wide program and incorporated into goals and objectives of employees. CG values guide how the organisation interacts with people, communities and the environment.
CG brings this commitment to life through its way of working CG EDGE i.e. Engage, Deliver, Grow and Excel, which is a basket of execution tools. This framework ensures that sustainability is integrated into how teams align on priorities, execute with discipline, build future capabilities, innovate for customers and drive measurable outcomes.
With this, CGs ESG strategy is evolving from being compliance led to business-integrated, performance-driven and future-ready. This methodical approach is driven by a comprehensive Environmental, Social and Governance (ESG) framework focused on continuous advancement and transparent disclosures. By consistently benchmarking performance against industry peers, CG has seen its practices translate into notable upgrades in its international ESG ratings this year.
In the reporting year, CG advanced its sustainability journey by becoming a participant in the United Nations Global Compact (UNGC). This milestone reflects its managements steadfast, voluntary commitment to championing the UNGCs core principles of human rights, labour, environment and anti-corruption across its global operations.
Fully aligned with NGRBC principles, CGs major manufacturing units have implemented Integrated Management System (Quality, Environment and OH&S). To standardize processes across all business units, CG is digitizing the majority of its Safety, Environment and Sustainability monitoring systems. The Company continued to provide its workforce with access to sustainability training modules and educational content.
With a firm commitment to greening its operations, the Company is deploying targeted sustainability initiatives designed to improve energy efficiency, conserve water, promote resource circularity and rigorously track and reduce greenhouse gas (GHG) emissions. To independently validate these environmental stewardship efforts, CG has adopted the CII Greenco rating system for comprehensive assessments of its key operational sites. This framework reviews multiple sustainability metrics from a life-cycle perspective.
As of March 31,2026, three of CGs major facilities covering 50% of its organisational revenue have successfully achieved Greenco ratings. Majority of CGs manufacturing sites are certified for Zero Liquid Discharge (Effluent), Zero Waste to Landfill and No Single Use Plastic.
To enhance the rigor and governance of the process, CG ensures its materiality assessment is closely aligned with the Enterprise Risk Management (ERM) framework. This approach allows priority ESG topics to be reflected in business-wide risk identification and considered during strategic decision-making. The assessment is grounded in the double materiality principle, evaluating both how ESG issues influence CGs financial and operational performance and how CGs activities impact society and the environment across its manufacturing units and subsidiaries.
Adopting Double Materiality Assessment in line with Global ESG Best Practices
CG completed its first Single Materiality Assessment in 2023, focusing primarily on impact materiality. In 2026, CG is working on a Double Materiality Assessment (DMA) to align with emerging global standards such as EU CSRD/ESRS, updated BRSR Core expectations and stakeholder-driven ESG priorities. The DMA approach integrates both impact materiality (how CGs operations influence the environment, society and value chain stakeholders) and financial materiality (how ESG issues affect CGs performance, resilience and long-term enterprise value). This enhanced methodology considers extensive cross-functional inputs from every manufacturing units of CG, domestic and international subsidiaries, external stakeholders, evolving regulatory landscapes and future business strategy, providing a holistic, risk-opportunity-impact view.
The outcomes of this DMA will help CG identify and prioritise the most critical ESG themes for the short term (next three to five years), including climate transition planning, energy efficiency, supply chain sustainability, workforce wellbeing, governance transparency and product innovation for a low carbon economy. By prioritizing what matters most, the assessment will guide CGs ESG strategy refresh, define targets and KPIs, strengthen BRSR preparedness, support ESG rating improvements and shape investment and operational decisions across business units.
FY26 ESG PERFORMANCE HIGHLIGHTS - Environmental Stewardship
o Project Appraisal with ESG Focus: Institutionalized process for evaluating projects to incorporate sustainability parameters in applicable project appraisals and employed TCO (Total Cost of Ownership) method for major purchases.
o Maiden TCFD Report Released: Successfully published maiden Task Force on Climate-related Financial Disclosures (TCFD) report, integrating climate risks into our core business strategies.
o Double Materiality Assessment (DMA): Initiated a comprehensive DMA exercise to holistically consider financial relevance and societal / environmental impacts of ESG topics; thereby providing a complete view of sustainability for both providers of capital and stakeholders.
o Renewable Energy (RE) Expansion: As of 31 March, 2026, CG had rooftop solar capacity of 5,300 kWp across its sites. Implementation of an additional rooftop solar capacity is underway.
o Resource Conservation: Initiated Energy and Water audits to cover all manufacturing sites to identify actionable footprint reduction opportunities.
Motors
o Implemented energyefficiency initiatives across stamping operations and manufacturing utilities, delivering annual electricity savings of 208 MWh and an emissions reduction of 150 tCO2e
o Advanced water stewardship through sewage treatment facilities, dry-type paint booths, and leak reduction initiatives, enabling reuse of 10,800 KL of water annually
o Continued focus on resource optimisation through
high efficiency motor upgrades, HVAC modernisation, compressor optimisation, and process-level improvements
Railways
o Advanced lean manufacturing and cost optimisation through implementation of over 180 Kaizens, delivering improvements in productivity, operational efficiency, and resource utilisation
o Reinforced green mobility offerings through continued
development of propulsion systems and traction technologies for modern electric and battery-powered rolling stock
- Social Responsibility
o Enhanced Workforce Diversity: Improved gender diversity rate from 7% to over 8%.
STRATEGIC SOURCING & VALUE CREATION INITIATIVES
During the year, CG further strengthened its Strategic Sourcing function, evolving it from a cost and compliance focus into a companywide value creation engine . Aligned across all five Business Units, Motors & Drives, Transformers, Switchgear, Railways, and Consumer Products, the function continued to play a pivotal role in driving operational excellence, supply chain resilience, sustainability, and digital enablement.
I NNOVATE TO VALUE (I2V): DRIVING ENTERPRISE-WIDE VALUE ENGINEERING
A key highlight was the launch and scale-up of the Innovate to Value (i2V) programme. This is a structured, cross-functional initiative led by Strategic Sourcing in collaboration with Engineering, Manufacturing, Quality, and Business teams.
Anchored in Value Analysis and Value Engineering (VA/VE) principles, i2V focuses on optimising cost, design, and material architecture while enhancing product performance and sustainability, without compromising quality or customer value.
During the year, the programme built a robust pipeline of 500+ projects across Business Units, spanning ideation to implementation, governed
through a structured stage-gate framework ensuring execution
discipline and measurable outcomes. Key focus areas include:
- Design Simplification & Material Optimisation: Reducing complexity, rationalising components, and increasing localisation to improve cost efficiency and supply agility.
- Innovation & Technology Adoption: Partnering with suppliers to introduce advanced materials, components, and process improvements.
- Operational Efficiency Improvements: Eliminating non-valueadding activities across supply chain and manufacturing interfaces to enhance productivity and reduce lead times.
- Sustainable Packaging: Transitioning to recyclable, lightweight, and cost-efficient packaging solutions aligned with sustainability goals.
- Supply Chain Simplification: Consolidating supplier base to improve reliability, negotiation leverage, and reduce complexity.
- Embedded Carbon Reduction: Driving lower carbon footprint through material selection, localisation, and design optimisation, contributing to Scope 1,2, and 3 reduction efforts.
- Key ESG initiatives undertaken during the year:
Transformers
o Reduced Scope 1 and Scope 2 emissions by
357.82 tCO2e through focused energy-efficiency and cleaner fuel initiatives
o Transitioned key heating systems from LPG to PNG,
lowering fuel consumption, operating costs and emissions
o Enhanced utility efficiency through deployment of
VFD chillers, air cooled pumping systems, IE4 high efficiency motors, BLDC fans, and motion sensor-based lighting systems
o Strengthened sustainable operations by optimising
compressed air systems and increasing adoption of battery-operated material handling equipment
Switchgears
o Improved cost and material efficiency through design optimisation, alternate sourcing strategies and import substitution initiatives
o Enhanced procurement effectiveness and reduced waste through supplier rationalisation and structured recycling initiatives
o Strengthened support for renewableled transmission
infrastructure through expanded deployment of Extra High Voltage (EHV) solutions
o Strong Employee Engagement: In FY26, CG conducted an employee engagement survey to better understand employee experiences and guide actions for its teams, leaders and organisation as a whole. The survey was administered by an independent external partner to ensure confidentiality. CG achieved a robust score of 82 out of 100 in this survey, reflecting strong alignment with the Companys strategic and customer-centric focus.
o Safety & Well-being Focus: CG continued its focus on safe operating practices and mandated rigorous safety interventions including critical equipment modifications, strict PPE protocols and leadership reviews.
The ESG Policies, Practices and Performance of CG are explained in greater detail in the Business Responsibility and Sustainability Report Section of this Annual Report.
SUPPLIER CARBON TRACKING PROGRAMME
Recognising the significance of Scope 3 emissions, CG initiated a
Supplier Carbon Tracking Programme to build visibility into upstream
emissions.
In its pilot phase, select high-spend suppliers were onboarded onto a structured digital framework via the Supplier Portal to capture emissions data across energy, fuel, process, and logistics parameters in a standardised format.
This initiative establishes a foundation for supplier carbon intelligence, enabling future measurement, engagement, and reduction of embedded emissions. The programme will be progressively scaled, with carbon performance set to become an integral parameter in supplier evaluation alongside quality, cost, delivery, and ESG compliance.
Supply Chain Resilience & Digital Enablement
CG continued to enhance supply chain resilience through diversification of supplier base, reduction of single-source dependencies, and crossBusiness Unit consolidation to leverage scale. Key initiatives included:
- Procurement digitisation to enhance spend visibility and enable data-driven sourcing decisions
- Supplier performance and compliance tracking across quality, delivery, financial health, and regulatory parameters
- Strengthening quality, ESG, and risk management frameworks for consistent and scalable implementation
Sustainable and Ethical Sourcing
The Company further strengthened its commitment to responsible sourcing by expanding EHS and working condition assessments across critical suppliers. The Supplier ESG assessment framework is being enhanced to align with evolving global standards.
Structured supplier engagement programmes were conducted to drive awareness on environmental regulations, labour practices, and sustainability expectations, reinforcing CGs approach to treating suppliers as long-term sustainability partners.
Strategic Partnerships and Collaboration
CG continued to deepen strategic partnerships with key suppliers to co-develop advanced components, access emerging technologies, and secure supply continuity. Early supplier involvement in product development and integration with the i2V programme has strengthened innovation, improved time-to-market, and reinforced long-term competitiveness.
FINANCIAL PERFORMANCE
Rs. crores
| STANDALONE | Consolidated | |||
| 2025-26 | 2024-25 | 2025-26 | 2024-25 | |
| 11,331 | 9,329 | Revenue from operations | 12,418 | 9,909 |
| 8,095 | 6,609 | Cost of materials consumed and components consumed and construction material | 8,565 | 6,926 |
| 579 | 480 | Employee benefits expense | 952 | 613 |
| 1,017 | 967 | Other expenses | 1,275 | 1,065 |
| 1,640 | 1,273 | EBITDA Excluding Other Income (OI) | 1,626 | 1,305 |
| 254 | 162 | Other Income (OI) | 244 | 162 |
| 1,894 | 1,435 | EBITDA Including OI | 1,870 | 1,467 |
| 7 | 6 | Finance cost | 12 | 7 |
| 94 | 87 | Depreciation and Amortization | 196 | 112 |
| 1,793 | 1,342 | Profit before share of profit / (loss) of associate, exceptional items and tax | 1,662 | 1,348 |
| - | - | Share of profit / (loss) of associate | - | - |
| 1,793 | 1,342 | Profit before exceptional items and tax | 1,662 | 1,348 |
| (36) | - | Exceptional items | (36) | - |
| 1,757 | 1,342 | Profit before tax Less: Tax Expenses | 1,626 | 1,348 |
| 462 | 174 | Current Tax | 471 | 185 |
| (22) | 194 | Deferred Tax (Net) | (41) | 190 |
| 1,317 | 974 | PAT for the year from continuing operations | 1,196 | 973 |
| NA | NA | Less: Minority Interest | (8) | (2) |
| 1,317 | 974 | PAT after Minority Interest | 1,204 | 975 |
| - | - | Profit from discontinued operation before tax | 2 | - |
| - | - | Tax expenses on discontinued operations | - | - |
| - | - | Profit from discontinued operation | 2 | - |
| 1,317 | 974 | Net profit for the year | 1,206 | 975 |
| 1,436 | 1,231 | Cash profit for the year | 1,405 | 1,240 |
KEY RATIOS (STANDALONE)
| RATIOS | 2025-26 | 2024-25 | REMARKS |
| Profitability Ratios | |||
| EBITDA Margin (Excluding OI) | 14.47% | 13.65% | |
| Operating Profit Margin (Excluding OI) | 13.64% | 12.71% | |
| Net Profit Margin (before exceptional items) | 11.94% | 10.44% | |
| RONW on total operations | 16.03% | 23.96% | Return on net worth has declined due to net worth includes the proceeds from Qualified Institutional Placements (QIP) proceeds. |
| ROCE (excluding exceptional item) (terminal) on continuing operations | 22.08% | 33.34% | Decrease due to amount invested out of QIP proceeds is included in capital employed. |
| Per share Ratios | |||
| EPS (Basic) on the basis of total profits from continuing operations (In Rs.per share) | 8.42 | 6.38 | Basic EPS increase to higher profitability from improved sales, better margins, and cost optimization directly increases basic EPS. |
| EPS (Diluted) on the basis of total profits from continuing operations (In Rs.per share) | 8.42 | 6.37 | Diluted EPS increase to higher profitability from improved sales, better margins, and cost optimization directly increases diluted EPS. |
| Leverage Ratio | |||
| Debt Equity Ratio | 0.00 | 0.00 | No major variance. |
| Interest Coverage Ratio for continuing operations | 85.77 | 90.59 | |
| Assets Efficiency Ratios | |||
| Net Sales to gross working capital of continuing operation (Times) | 1.63 | 2.26 | Declined due to gross working capital includes the proceeds from QIP fund. |
| Net Sales to net working capital of continuing operation (Times) | 3.36 | 6.20 | Declined due to net working capital includes the proceeds from QIP fund. |
| Other Ratios | |||
| Average Debtors Turnover (no of days) | 74 | 65 | |
| Average Inventory Turnover (no of days) | 54 | 48 | |
| Current ratio | 1.94 | 1.57 | Current assets includes amount invested from QIP fund. |
ENVIRONMENT, HEALTH & SAFETY (EHS)
A detailed write-up on Environment, Health and Safety (EHS) has been provided in the Business Responsibility and Sustainability Report (BRSR), forming part of this report.
CORPORATE SOCIAL RESPONSIBILITY
A detailed report of CSR activities of the Company during FY26 has been mentioned in the CSR Report, which is appended with the Directors Report.
HUMAN RESOURCE
At CG Power and Industrial Solutions Limited, our people remain at the heart of our growth and transformation journey. We believe that building a future-ready organization begins with fostering an inclusive, merit-driven, and development-focused workplace, where every individual is empowered to contribute, grow, and succeed.
INCLUSIVE AND RESPECTFUL WORKPLACE
We are committed to nurturing a workplace that is respectful, inclusive,
and free from bias. Diversity is actively encouraged, with equal
opportunity forming the foundation of our people philosophy. Guided by our values - Customer Centricity, Humility, Ownership Mindset, Integrity, and Respect (CHOIR) - we ensure that every employee is treated with dignity, while ethical conduct and respect for human rights remain embedded across our operations and value chain.
TALENT ACQUISITION AND WORKFORCE STRENGTH As the organization continues to expand, attracting the right talent remains a strategic priority. During FY26, CG welcomed 821 professionals across functions and locations, supported by focused outreach to womens engineering and diploma institutes in Tier 2 and Tier 3 cities. This reflects our continued commitment to building a more diverse and representative workforce.
PERFORMANCE MANAGEMENT AND TALENT DEVELOPMENT At CG, performance management is structured to align individual contributions with organizational priorities. Rather than being viewed as a periodic exercise, it is embedded as a continuous process through ongoing performance conversations and real-time feedback, complemented by formal mid-year and annual reviews.
This is further supported by a robust talent review and succession planning framework. Through a systematic approach to identifying, developing, and deploying talent, the Company continues to strengthen its leadership pipeline and build long-term organisational capability.
LEARNING AND DEVELOPMENT
Learning and development continue to play a central role in shaping our workforce. Over the past year, CG further strengthened its capabilitybuilding initiatives to support the development of a future-ready, high- performing, and values-led organisation.
DRIVING PURPOSE AND VALUES
To reinforce our organisational ethos and embed our Purpose and CHOIR Values into everyday actions, we adopted a multi-pronged approach. Alongside regular leadership-led sessions, where leaders actively
demonstrate values in business contexts, we introduced a dedicated e-learning module, Living the Purpose and Leading with Values.
This initiative enables employees to build a deeper connection with our core philosophy, understand how it guides decision-making, and translate it into consistent workplace behaviours.
DIGITAL LEARNING & FUTURE-READY CAPABILITIES LinkedIn Learning: To foster a culture of continuous, self-directed learning, we launched LinkedIn Learning, providing access to over 10,000 courses that support professional growth, personal effectiveness, and capability enhancement across roles.
Mandatory Compliance Training: Under the One Hour Learning initiative, interactive e-learning modules covering key areas such as POSH, Code of Conduct, and Information Technology achieved 100% completion across the organisation during FY26.
Building Future-Ready Skills :
- Programmes such as AI in Manufacturing were introduced to strengthen digital awareness, build technology capabilities, and enable data-driven decision-making across operations.
- The Project Management Professional (PMP) Program was launched to strengthen execution capabilities and build project- ready talent through masterclasses, coaching, assessments, and cohort-based learning across locations.
EMPLOYEE ENGAGEMENT AND WELL-BEING Employee engagement and well-being continue to remain key priorities. During the year, our organisation-wide engagement survey, Connections, recorded participation of over 94% (3,600+ employees). The results were encouraging, with the overall engagement score improving to 82 and inclusion scores increasing to 81. Notably, our engagement score was 5 points above the industry benchmark, refecting the strength of our people practices and workplace culture.
These insights continue to shape our efforts to enhance the employee experience. Initiatives such as town halls, leadership connect sessions, sports events, and cultural celebrations have helped foster a more connected, inclusive, and vibrant workplace.
DIVERSITY AND INCLUSION
Gender diversity and equal opportunity continue to be important focus areas. In FY26, 9% of new recruits were women, refecting our commitment to build a balanced workforce. The Company welcomed specially-abled candidates as part of its inclusive hiring practices.
As we continue our transformation journey, our focus remains on building a resilient and future-ready organisation by investing in our people, strengthening capabilities, and embedding a culture of continuous learning and values-led growth across the organisation.
INTERNAL CONTROL SYSTEMS & THEIR ADEQUACY
INTERNAL AUDIT
The Company has established an in-house Internal Audit function during the year to further strengthen the control environment, provide additional assurance through enhanced coverage, and facilitate implementation of the agreed action plans. The Internal Audit function operates under an approved charter that defines its purpose, authority, scope and responsibilities, and provides for independent and unrestricted access to records, systems and personnel. To maintain objectivity and independence, Internal Audit for FY26 is carried out through a combination of the Companys in-house Internal Audit team and an independent specialist internal audit firm, PricewaterhouseCoopers (PwC) Services LLP, appointed by the Audit Committee. The Head of Internal Audit functionally reports to the Audit Committee and administratively reports to the Managing Director.
INTERNAL FINANCIAL CONTROLS
The Company is responsible for establishing and maintaining adequate internal financial controls with reference to the financial statements and for ensuring their operating effectiveness. The internal financial control framework is designed to provide reasonable assurance regarding the orderly and efficient conduct of business, including adherence to the Companys policies, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records, and timely preparation of reliable financial information.
The key internal financial controls within the Company are documented and are commensurate with the size, scale and complexity of its operations. This robust framework includes entity-level policies, process controls, IT general controls, Standard Operating Procedures (SOPs), and Delegation of Authority (DOA).
The Audit Committee approves the audit plan for the year. The internal audit plan is risk-based and is aligned to the Companys key enterprise risks and emerging risk themes. The annual plan comprises verticals, business processes, locations and the coverage timelines. The scope and objectives of the internal audit reviews extend beyond transactional risks to cover business process aspects and emerging risk areas such as regulatory changes, technology risks, etc.
Entity-level policies include anti-fraud measures, such as the code of conduct, conflict of interest guidelines, insider trading policy, confidentiality agreements, and a whistleblower policy. Additionally, the Companys internal financial control framework integrates governance policies covering human resources, corporate communication, IT security protocols, risk management, and business continuity and disaster recovery plans.
The internal auditor focuses on processes and system audits to assess adequacy and operating effectiveness of internal controls, compliance with the Companys policies and procedures, and recommends areas for improvement to strengthen the control environment and improve business processes. The Company is realising the benefits from the professional approach and practices implemented by the internal auditors.
Significant internal audit observations, along with the agreed action plan, are discussed with the Audit Committee on a quarterly basis. The status of implementation of agreed action plans is monitored periodically and reported to the Audit Committee until closure. The Audit Committee evaluates the adequacy and effectiveness of controls and recommends areas for improvement to strengthen the control environment. This ongoing evaluation process by the Audit Committee contributes to the organizations resilience and ability to adapt to changing risk landscapes and, thereby, ensuring a robust and sustainable internal control environment.
The Company has defined Risk and Control matrices for key business processes, including procure-to-pay, order-to-cash, hire-to-retire, treasury, finance and accounts, fixed assets, inventory management, and IT general controls, covering both entity and business vertical levels. These internal financial controls are reviewed by Independent Internal and Statutory Auditors every year who evaluate the effectiveness of these controls. The design and operating effectiveness of key controls, including entity-level controls, process-level controls and IT general controls, are subject to periodic evaluation/testing by management and are independently reviewed by Internal Audit and Statutory Auditors, as applicable.
RISK MANAGEMENT
CG Power and Industrial Solutions Limited operates in a landscape characterised by diverse internal and external risks spanning financial, operational, sectoral, technological, ESG-specific, cybersecurity, and geopolitical domains. Given the breadth of its business portfolio and the geographical spread of its operations, the Company has instituted a Board-approved Risk Management Charter & Policy to implement a structured and comprehensive enterprise risk management system. This charter aims to establish a shared understanding, terminology, and approach for identifying, assessing, responding to, monitoring, and reporting risks. Its primary objective is to assure management that key risks are identified and managed effectively across the Company.
The Enterprise Risk Management (ERM) initiative endeavors to cultivate a risk intelligent organisation, enhancing resilience to significant risk exposures while fostering agility and competitive advantage to uphold and elevate long-term stakeholder value.
BUSINESS OUTLOOK
CG continues to strengthen its position as a diversified engineering company with a growing presence across power systems, industrial solutions, rail transportation, consumer durables, and emerging technology segments. Backed by strong operational execution, disciplined capital allocation, focused investments in technology and manufacturing capabilities, and a customer-centric approach, the Company remains well positioned to capitalise on long-term growth opportunities across domestic and global markets.
With Indias continued focus on infrastructure development, energy transition, grid modernisation, railway electrification, manufacturing expansion, data centres, semiconductors, and digital infrastructure, CG is expected to create sustained demand across several of its businesses. Increasing investments in renewable energy, industrial automation, electrification, and energy-efficient solutions are further expected to support medium- to long-term growth prospects.
To oversee this process, the Company has instituted a robust governance structure, led by the Risk Management Committee of the Board (RMC).
The ERM framework has proven instrumental in identifying and analyzing unforeseen risks, empowering management to make informed decisions. The ERM team fosters process efficacy through extensive engagement with a broad array of internal stakeholders via a bottom-up approach, as depicted in the diagram below, with senior management providing active oversight, review, and guidance at every stage.
The RMC reviews the Companys risk profile, including principal and emerging risks, the adequacy of mitigation plans and the overall effectiveness of the risk management framework. Where applicable, the Board/RMC also provides direction on risk appetite/tolerance considerations to support decision-making.
Key risks are monitored through periodic reviews and appropriate metrics/indicators, with defined escalation and reporting mechanisms to senior management and the RMC. The ERM framework is integrated with business planning and performance reviews to enable timely risk responses and to support long-term value creation.
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CG also continues to deepen its international presence across key markets including North America, Europe, the Middle East, Africa, and Southeast Asia, supported by stronger customer engagement, regional partnerships, and participation in global infrastructure and industrial opportunities.
Guided by CG EDGE, the Companys operational execution framework, the Company continues to strengthen its competitive positioning through product innovation, operational excellence, supply chain resilience and digital transformation. With a diversified portfolio, growing technological capabilities, and a clear strategic focus on execution and sustainable growth, CG remains optimistic about the opportunities ahead and is committed to creating long-term value for all stakeholders while continuing to advance its purpose of Pioneering Innovation for a Sustainable Future .
FORWARD LOOKING STATEMENT
This report contains forward-looking statements, which may be identified by their use of words like plans, expects, will, anticipates, believes, intends, projects, estimates or other words of similar meaning. All statements that address expectations of projections about the future, including but not limited to statements about the Companys strategy for growth, product development, market position, expenditures and financial results, are forward-looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realised. The Companys actual results, performance or achievements could thus differ materially from those projected in any such forward-looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, based on any subsequent developments, information or events. The Company has sourced the industry information from the publicly available resources and has not verified that information independently.
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