Thank you, Vishesh. Very good evening everyone.

On behalf of IIFL Capital, like to invite the senior leadership team of CG Power and Industrial Solutions to discuss the fourth quarter FY '26 earnings performance. From the management team, we have with us today Mr.

Amar Kaul, Managing Director and CEO; Mr. Susheel Todi, Chief Financial Officer; Mr.

Marais Neethling, EVP Drives and Automation and International Motors Business; Mr. Gaurav Makhija, Vice President, Switchgear and HTB Business; Mr.

Ajay Jain, Vice President, Transformer Business; Mr. Dhananjay Bapat, Vice President, Railway Business; and Mr.

Jitendra Kaul, EVP Motors Business, India Subcontinent. I now like to hand over the call to Mr.

Amar for his opening comments and explain us how do we deliver such stellar performance in the business, especially Power Systems surprising yet again. Thank you, and over to you, Amar.

Hi. Thanks Renu and team.

Good afternoon everyone, and welcome to CG earnings call. I'm happy to share with you all that CG had one another strong set of results for the quarter and year ended 31st March '26, reflecting our continued momentum powered by disciplined execution and strategic focus.

This is a record fiscal year performance for CG in recent times with a strong Q4 caps off a record fiscal year with highest ever standalone revenue, order book, and PBT after accounting for exceptional items. Our Q4 '26 sales grew by 22% year-over-year, PBT at 43% year-over-year with 260 basis points margin expansion, delivering a strong finish to a record year.

For the full year, our sales grew by 21%, PBT at 34% year-over-year with 143 basis points margin expansion, again making it the strongest standalone fiscal performance yet. Further, the order flow remained pretty strong during the quarter with penetration into several new and emerging verticals and markets, taking the order backlog up 59% year-over-year to ₹15,719 crores and offering a strong revenue visibility for financial year '27.

Now, as I go deeper into standalone performance starting with Q4, the aggregate sales for the quarter was high at ₹3,129 crores, recording 22% as mentioned earlier. Profit after tax was higher at a growth of 49% at ₹412 crores, which is 13.2% of sales, as against ₹275 crores, which was 10.7% of sales in Q4 financial year '25.

Return on capital employed for the quarter was at 27%, and order intake for the quarter was ₹4,505 crores, which is 23% growth year-over-year, and unexecuted backlog at the close or closer of financial year '26 was at ₹15,719 crores, which is 59% up year-over-year. Now, going further deep into standalone performance for financial year '26, the sales was at ₹11,331 crores with a growth of 21%.

Profit after tax was at 39% at ₹1,352 crores, which is 11.9% of sales, as against ₹974 crores, which was 10.4% of sales in financial year '25. Return on capital employed for the year was 22%.

Order intake for the year was ₹17,574 crores, which is 30% growth year-over-year, and unexecuted order backlog as of close of the financial year was at ₹15,719 crores, which is 59% up versus the last year. Now, moving to the sector-wise or segment-wise performance starting with Industrial Systems, while performance for Q4 continued on a sequential upward trajectory despite volatility and rising commodity costs, the aggregate sales for the quarter Q4 was at ₹1,643 crores, which is 5% up with robust double-digit growth in the motors, which for the last few quarters you must be hearing me saying that we have stabilized a lot and the team is doing a fantastic job to stabilize that, so that has started showing the results there.

PBIT was at ₹157 crores, 9.6% of sales, as against ₹176 crores, 11.2% of the sales in Q4 '25. Margin deviation is due to the mix change and the competitive pricing in railways business as well as higher MSR for motors due to commodity impact.

The disciplined pricing along with focused efforts on efficiency gains via cost and productivity programs over the last few quarters helped partially mitigate this adverse impact. Business continues to prioritize margin expansion through ongoing cost initiatives, structural improvements, pricing, and the mix shaping.

We have improved margins by 20 basis points sequentially, and the order intake for the quarter was ₹1,478 crores, and the unexecuted order backlog towards the closure of the financial year was ₹3,075 crores. Healthy growth in orders and order backlog in motors and drives also was a contributor towards this.

When we come to the full-year performance, the sales for the year was ₹6,197 crores, which is 6% up with a healthy growth primarily in motors. PBIT was at ₹613 crores, which is 9.9% of the sales, as against ₹707 crores, 12.1% in the previous year.

That margin deviation that you see here is due to the mix change and the competitive pricing in railways business and a part impact of we on our own slowing down because of that tariff impact from some countries that we had, so that was a conscious effort to delay that. The disciplined pricing along with focused efforts on efficiency gain via cost and productivity program over the last few quarters have helped partially to mitigate the adverse impact, and business continues to prioritize the margin expansion through ongoing initiatives and structural improvements in pricing and mix shaping.

The order intake for the year was ₹6,365 crores, and the unexecuted order backlog as of closure of the year was ₹3,075 crores, and there was a healthy growth in order backlog in motors. Now, if I go to the other segment, which is the Power Systems, the performance continued upward trajectory with the sustained margins and continues to be in Q4, underscoring the robust market dynamics with disciplined execution.

The aggregate sales for the quarter was at ₹1,487 crores with a jump of 50% year-over-year, reflecting strong execution discipline. PBIT was at ₹354 crores at 23.8% of sales, as against ₹208 crores, which was at 21% of sales in Q4 '25, and significant 287 basis points margin expansion, underpinned by efficient order execution and strong operating discipline.

Order intake for the quarter was ₹3,027 crores, which is 72% growth year-over-year, and unexecuted backlog as on 31st of March '26 was ₹12,644 crores, 91% up year-over-year, offering revenue visibilities spanning several future quarters. When we consider full-year performance for power, the aggregate sales was higher at ₹5,138 crores with a rise of 46%, reflecting a strong execution discipline.

PBIT was at ₹1,123 crores, 21.9%, as against 668, which was at 19% of sales in financial year '25, which again comes to 281 basis points of margin expansion and underpinned by the efficient order execution and strong operating leverage. Order intake for the year was at ₹11,210 crores, 69% growth year-over-year, and unexecuted backlog as on 31st March was ₹12,644 crores, which is 91% up year-over-year, offering revenue visibility spanning several future quarters.

With this, we conclude deep dive into standalone performance, and I will now move to the consolidated performance. As consolidated results includes the performance of our subsidiaries in Sweden, Germany, Netherlands, CG Adhesives Product, and CG Semi, Giga Tronics, Exxidous, and other non-operating subsidiaries.

Starting with Q4 performance, aggregate sales for the quarter were up at ₹3,442 crores at a growth of 25% year-over-year. Profit after tax was 32% higher at ₹362 crores, which is 10.5% of sales for the quarter, as against 274, which was 10% of the sales in Q4 last year.

Margin gains are driven by strong performance, were offset by continued investment in talent pool for semiconductor business, and total semiconductor segment impact of ₹38 crores, which is 110 basis points. Return on capital employed annualized for the quarter was 24%, order intake ₹5,335 crores, and unexecuted as on 31st of March '26 was at 61% year-over-year at ₹17,107 crores.

When we consider our full-year consolidated performance, aggregate sales for the year was ₹12,418 crores with a growth of 25%. PAT was at 27% at ₹1,223 crores, 9.9% of sales for the year, as against ₹923 crores, which was 9.8% of sales in financial year '25.

Margin gains are driven by strong standalone performance and were offset by continued investment of our talent pool, as mentioned before. Return on capital employed for the year was at 20%.

Order intake for the year was ₹19,616 crores, 33% growth, and unexecuted backlog as on 31st of March was 61% up at ₹17,107 crores. Now, moving to the key events for the last financial year, as you would have seen, we had announced that we bagged the order for the supply and servicing of 765 kV transformer packages from the large customer, Power Grid Corporation.

That total order value was about ₹641 crores, is the highest single order domestically received in the transformer business in CG. The order is expected to be completed between 18 to 36 months.

Also, CG secured the single largest order of ₹244 crores for EHV business from Techno for supply of packaging transformer, circuit breakers, lightning arresters, and a combination. CG also launched successfully and completed QIP for equity shares and raised ₹3,000 crores.

The issue opened on 30th June and closed on 3rd of July. It was oversubscribed by 3x and saw participation from both Indian and global marquee investors.

CG Semi, a subsidiary of CG, unveiled one of the India's first end-to-end OSAT facility in Sanand in Gujarat, and with this launch of G1 facility, CG Semi becomes one of the first fully served OSAT providers offering solutions across both traditional and advanced packaging technologies. This marks a major step in strengthening India's semiconductor capabilities and supporting the country's goal of becoming self-reliant while also serving global markets.

The G1 facility will operate at a peak capacity of half a million units per day, which we are trying to even increase that output over the next few months or quarters we should be in that situation. G2 facility located about 3 km from G1 is under construction, expected to be completed by end of 2026.

Once operational, G2 will scale up to the capacity of approximately 14.5 million chips per day. Together, the two facilities are projected to generate about 5,000 direct and indirect jobs in the coming years.

Thus, CG Semi is also eligible for capital assessment assistance as per the scheme for setting up OSAT facility launched in India Semiconductor Mission, ISM, under the Ministry of Electronics and Information Technology vide approval dated 8th March 2024. The approval covers a 5-year period from financial year '24-'25 to '28-'29 for a total project cost of ₹7,584 crores, with central government assistance of ₹3,501 crores and additional state government support equating to 40% of the central government assistance, coming to about ₹1,400 crores.

The fiscal support agreement was signed on January 17, 2025, and the trust and retention account agreement was signed on September 15, 2025. The Board of Directors on 29th October '25 approved a greenfield expansion for switchgear business with an investment of ₹748 crores net of taxes.

The expansion is proposed considering the expected increase in demand for medium voltage and extra-high voltage circuit breakers, instrument transformers, gas-insulated switchgears for domestic and also to the exports market. CG secured about ₹900 crore worth of power transformer order, which is substantially large one.

It's for the data center in United States. The order was received on 16th of January '26, and is the largest single order received by CG for supply of power transformers.

Under this contract, CG will supply the transformers specifically engineered to meet the stringent reliability, efficiency, and uptime requirements of hyperscale data center applications. This order will be executed for a delivery period of 12 to 20 months with the delivery terms of FAS Mumbai Port as the Incoterms.

The Board of Directors of the company at its meeting held on January 27, 2026, considered and approved the payment of interim dividend of ₹1.3 per equity share, that is 65% of the face value of ₹2 per share for financial year '25-'26. With this, I conclude my opening remarks.

Audited financial statements with detailed notes are available as part of stock exchange filing and on our company website. Thank you so much for listening in, and over to you, Renu, for Q&A.

Can you open the session for Q&A, please?

Hi sir. Good afternoon.

Thanks for the opportunity. I had three questions.

First, it's good to hear that we've finally seen double-digit growth in motors. Just wanted to understand how much is volume growth and how much is price-led?

Also, given the current inflationary environment, how much more of price hikes would you intend to take in the motor side of the business? Thanks.

Sure, Ankur. I think great question.

On the motor side, I would say it was a combination of the price increase that we got from the customers and a combination, I would say, about 50/50% of both and the volume hike as well. The volume hike is almost in sync with the market growth that we have seen, but also we didn't let our pricing leakage also to happen from there.

Okay. How much more do you think you may have to take to cover the current inflation?

Ankur, it purely depends on, because we keep a laser-sharp focus eye on the commodity inflation the way it is happening, because it's a little tricky for motors or drives business versus some of the large long-lead items because where you get the PVC. We keep a laser-sharp focus on how it is going, how the projections are on that, and based on that we take the decision case-to-case basis.

Maybe it's not required. What we are also honing our skills on is the pricing discipline, how do we make sure that we are not having the leakage by giving additional discounts.

I think that's another thing that we are working closely on.

Okay. Fair.

Okay. Second question, sir, would be on the power products, the orders.

While it's very very strong, given we've got this ₹900 crore odd order for the data center, but if I exclude that and I look at the domestic orders, that's up about 20%. Ex of the data center order, it was about 16% last quarter.

Sequentially, we are in that ₹2,000-₹2,200 crore ballpark. Just trying to understand, is this the more sustained kind of growth rate that we should be kind of expecting in that 15-20% ballpark as we head into next year?

Obviously, the base also starts catching up. Just your thoughts on the overall trajectory here on the domestic transformer power products business.

I think, Ankur, if I had to give a short answer, the game is just started. So ₹900 crore is what we had to report because it was a substantial order that we have, but after that also the tap is open, and as we put our feet on the ground outside India as well, anything we touch, it just opens up.

There's so much of opportunity available for everybody. You just need to know how to encash on it, how to make sure that you execute with the right quality, right standards, right reliability.

I think that's what will be the differentiation, nothing else. You should have the appetite on that.

I'm not going deeper whether it's transformer or it's switchgear, but I think overall for power we still see a huge demand all over the world.

No, fair. I understand ex of India, but specifically of India is what I was talking about.

How would you see the Indian power product market shaping up as you head into the next couple of quarters as well?

That's also growing at a very very fast pace. In fact, as we are adding, if you see just one year back, we were at some 18,000 17,000 MVA capacity for transformer.

Today, we are almost close to 65,000 MVA. That I don't think anybody has done that kind of increase.

Still we feel, as we reach the large customers or even the government companies in the utility sector, what we keep hearing, "Give us more. Give us more."

Nobody is saying stop it. I think it's like Amar Kaul for power sector in India as well.

Okay. Just one last one is on the balance sheet.

I see this item called other financial assets totaling almost ₹3,000 crores in Q4. Can you just help us understand what is that?

This is that the QIP money which has come up, it is parked into the different asset classes.

Got that. Great.

Got that. Thank you so much, and all the best.

Good afternoon, sir, and thanks for the opportunity. My first question is that can you help us with the Giga Tronics order inflow, and how did the year panned out in terms of revenue, EBITDA, and PAT?

How do you see the order outlook in the segment,

yeah? Mohit.

I think Giga Tronics, if your question is specific to the order book, I think it's pretty strong right now.

I think

we should have the we should have the, I think the order backlog should be to the tune of close to ₹1,000 crores approximately. Right now, if the second question might come for, how when do we start executing.

We are at the last leg of the approval process, which is the passenger trials, which is already going on. There are about as of today morning, 12 trials have already been completed.

I think maybe another month, month and a half, all these trials should be done. Then we start executing.

What was the last year revenue, EBITDA, and PAT? The number is available with you?

Available?

You mean for GGT or what?

GGT, Giga Tronics, yeah.

What's your question?

My question is, what was the revenue and profitability for the Giga Tronics especially?

They are at I think ₹100 crore at a full-year basis. They are making money, they are not losing the money.

They are at at least around ₹4 to ₹5 crore PBT number.

My second question is, can you help us with the jump in receivable, which was ₹2,000 crore last year, I think it has jumped to ₹2,900 crore if I'm not wrong. It has up by around maybe 50%, while the top line is up by 20% odd.

Now you are talking about the trade receivables?

Yes, yes, yes.

Only trade receivables?

Yes.

Okay. You look at the growth which is coming mainly in the power segment, right?

If you look at even that the return of capital employed on the power side is more than 100% plus. The receivables which are there today, it's coming from the power side.

The average credit period is ranging between 90 to 100 days.

Understood. Thank you, sir.

That's all.

Hi, sir. Thank you very much for the opportunity.

Sir, firstly on motors, what would be the mix of IE3 and above in our overall FY '26 volume, and where do you see that growing in next 2 to 3 years? Does this change in mix help our margins or this change in mix will be margin neutral?

See, specific, I'm not allowed to give exact numbers of IE3, IE2, IE4 numbers, but I can tell you it's not very substantial at this point of time because even though we talk about energy efficiency, but Indian market is a bit slow on adoption of IE3, IE4, IE5 technologies, but I'm sure it's going to pick up in next couple of years as government is tightening and the need for energy is increasing further. Our R&D and development is also accelerating the same to have a complete portfolio of IE3, IE4 motors, so that is progressing well.

To your question, to be specific, it's not very big in terms of the percentage of the overall portfolio. Because of market size, not because we cannot supply.

Understood, sir. Sir, secondly on the GIS, we were in the development stage for 400 kV GIS.

If you could share an update on its commercialization and also the development plans for 765 kV GIS, if I may.

Gaurav, you want to pick up that question?

Yeah. Sure, Amit.

Thank you for that question. For 400 kV GIS, the plan is exactly on the schedule there.

We have already tested the phase one of our GIS portion. The phase two is scheduled between quarter two and quarter three.

Yes, once we have the type test done in any of these international labs, we should be out with our commercialization for 400 kV GIS. Yes, further to that, 765 kV is on the conversation there.

So 2027 financial should see the commercialization happening for 400 kV GIS.

Understood. Lastly, if you could share an update on the drives business in terms of how much sales, assembly, value addition, localization that we are now doing in India?

Drives, I think there's a series of new product launches that is planned from April onwards. It's already started getting launched, it's called Emx drives, which is the next generation drives, and again, low-voltage drives.

Medium-voltage, the percentage is not so high, but low-voltage drives is almost 100% indigenous.

Thanks for the opportunity. Phenomenally strong results in Power Systems.

Could you give us an update on the power transformer capacity expansion, how that's panning out, and what are the sort of the timelines as you add capacity and reach your target? The second question is on the export business within CG.

What has been the scale or size of exports overseas revenue separately for Power Systems and Industrial Systems in FY '26, and what is your outlook for growth through FY '27? What are the opportunities that you are pursuing?

Those are my questions.

Ajay, if you can take the first question in terms of transform capacity, and then send it back to me for the exports, I will answer.

Thanks, Amit. Thanks for the question.

Regarding the transformer capacity addition, we have completed the brownfield expansions both in Gwalior and Bhopal. The Gwalior facility has now capacity increased from 6,000 to 10,000 MVA, and the Mandideep, Bhopal facility, there we have done capex, and as per the capex plan, the capacity is increased to 40,000 MVA first, and then we had our lean plans.

We worked along with the lean consultant, and this capacity has grown to further 65,000 MVA at the end of the last year. Now for the forthcoming additions in capacity, greenfield plant erection is in progress, and we hope to commission the plant somewhere between July and August, and initially we will be starting with the capacity of around 25 to 30,000 MVA, and by the end of this calendar year we will be touching the peak of 45,000 MVA there.

As of now, if we total up between Gwalior and Bhopal, we have a capacity of 75,000 MVA, and another 45,000 MVA to be added by the end of this year. This will be around 1,10,000 MVA by the end of this financial calendar year.

Over to you, Amar.

Thanks Ajay. I think, Sumit, on your other question, we would not give the split of exports by each business, but yes, exports and services is a focus area for us.

The only thing I can talk about is both the areas we have more than doubled our order bookings between last year and this year. We have much larger aspirations.

More to come, stay tuned on it. Exports and services will stay as our key focus areas.

My question is again on the motors and drive business. Since the start of the war, because a lot of clientele we understand is SME and MSME, how has the demand been for that part of your business where you sell stuff to SME, MSME?

Very strong demand. See,

in any case for motors and drives our exports is not substantial today. I'm keeping out our European business for drives because that is primarily the European plant which supplies to Europe as well as to US, that is going on on that geography.

There's not any specific dip or anything that we see from these regions because of war or anything.

Sir, what about in India? I believe you will be selling to small industries quite a bit, right?

Is the demand holding up in India or is there an impact on demand because of shortage of gas and increased [costs?] ?

We don't see that,

we don't see the dip in that. In fact, with our GTM getting activated now with the senior leaders in place, in fact, we see improvement in the order intake.

Good to know. Sir, my last question is on again the transformer capacity.

Currently operational 65 kMVA, how much of it will be 400 kVA plus capacity, or is it fungible across all the kV ranges?

It is across all the ratings that you have, even up to 765. In fact, we are now getting the new plant coming in up to 1,200 also.

Hi Amar. I have two quick questions.

First is on the Power Systems

Is it fine now? Is it fine now?

Amar, I think first of all, congratulations on great set of results. On the power business, when you tap the American market beyond data centers for American grid utilities,

Amit Amit, I couldn't hear you. You'll have to come close to the mic.

I hope I'm audible to you all.

Sure, we'll do so. Firstly, congratulations to the entire team on a fairly strong set of results once again.

The first question that I had from my side was if you could give us a sense of the addressable market on the GIS side in the 400 and the 765 kV category. Domestic, overseas, whichever way you want to kind of think through today.

How do you think through the addressable market for yourself then?

I think, Gaurav, if you want to answer that. Of course, not going too specific into the ratings, but you can generally talk about GIS addressable market.

Yeah.

Not to get into any specifics of the details of GIS today, if you see the overall switchgear today would stand close to about 12,000-odd crores as a market total, right? Of which I believe around 20 to 30% still would be GIS, rest of them could be an AIS switchgear.

That's the quantum, possibly a potential addressable market that we could also be aiming at in future.

Sure. Understood.

I'm assuming this is a domestic part. Is there also an overseas part that you believe can fall inside our kitty?

I think as Amar mentioned, I think exports as well as service remains our key focus. Whatever we are developing or whatever is under plan is both for domestic as well as exports for product development, whether it's a 145 kV GIS, ranging to 170, 245, as well as 400 are under plan for both domestic and international markets now.

Understood. One of your peers was talking about and in a similar zone that you are in terms of capabilities, was talking about moving on the HVDC side of things.

Is there a plan that the company has, and what are the key milestones that you may have to achieve to kind of reach that level of capabilities,

yeah? It's still at the infancy stage.

We have laid down a bit of roadmap on that, but the plan is not fully mature. When we are ready for it, we'll surely share.

Sure. Maybe the final question from my side, this is more on the semiconductor part.

You made an initial investment about ₹50 crores inside EdgeCortix. Could you talk a little bit more about that and how to think through investments inside semiconductor design from here on, maybe a little bit more on the medium-term basis, yeah?

Thank you. That would be my final question.

Okay.

This is just one of the steps that is into this direction. You must have heard me every quarter in the earnings call or any of the interactions that especially on The conference is now being recorded.

Is it working?

Yes.

Can you hear me?

Yes, sir. Yes, yeah.

Okay. Let me repeat.

What I was saying is that so these investments, as you would have heard me in last couple of quarters, that we are looking at a detailed pipeline of candidates on potential M&A to keep building on our design capability. The first step was on the RF design capability, but that's not where Exxidous stops.

The investment that you see is just one step forward in that direction. Especially with everything coming in, there's so much everyday the technology is changing.

You'll see more and more of these investments coming into even these startups or these kind of companies where we will get to know the latest in the world that is happening. More to come on that.

Yeah. Hi, Amar.

I have a question on motors. Are you able to hear me?

Yes, Rahul. Okay.

On the motors, is it fair to say that the worst is behind and we can see improvement in growth and margin from here? Also, I think you've talked about this earlier, where you've taken some price hike.

Through the last entire year, how much price hike did you actually take? Your comments on competitive intensity and market share in the motors.

That's the first question.

Okay. Super.

I think to start with, your question was how much price increase did we take, is about all put together, it was 5, 5, 7.5, total of 17.5% price increase that we did in the last 3 to 4 quarters. With decent realization.

Now good news also in that, the team led by Jitendra, who leads this business, is they have kind of maintained their market share in spite of such a steep price hike. Now I generally say that we are blessed to be the market leader, the moment we do something like this, everybody else follows us.

That's what has happened in that direction.

To quantify that, that will be in the range of 35-odd percent market share?

It depends on If you look at overall LT motor side, we would be approximately 38-39%. Approximately if I go to larger industrial motors, it'll be around 19-20% approximately.

Okay. Fair enough.

That's on the motors. Now on the power, I want to understand, the order that you've got from the data center, that actually indicates delivery time anywhere between 12 months to I think 18 or 20 months.

Is that the quickest you can deliver a transformer to the US market or you think you can do it much faster?

Ajay, you want to answer that?

Thanks for this question. You see the delivery of transformers for the US market basically depends upon the delivery of the components like tap changer and bushings.

Even though we can manufacture transformers earlier than that, but we will always be dependent on tap changer deliveries which come from Germany, and they are anywhere between 9 to 12 months. As of now, we are constrained, we can deliver from 12 months onwards only because of this reason.

Because I understand, Koreans can actually deliver in closer to 10 months, that's the reason this question. Fair enough.

My last question is on the semiconductor business. While you did indicate that the chip revenue will start in two quarters, the ₹500 crore which is currently booked into the financials, all of that is design-led revenue or there is something else in that ₹500 crore?

That's my last question. Thank you.

Sir,

Yeah. I don't know if you heard the question or I will repeat the question.

Yes please, yes Rahul, because the line got disconnected.

My last question was on the semiconductor. Now you have indicated that the semiconductor chip revenue essentially will start in about two quarters or so.

I want to understand, the ₹500 crore which is booked into the financials, all of that is design-led revenue or there is something else in that ₹500 crore?

Which ₹500 crore you're talking about?

The segmental breakup that you all gave of the revenue? Over there, for the full year, the number is ₹500 crore.

I just wanted to be sure what exactly is that number.

This is the revenue which is coming that, the company what we bought from Renesas, the RF business from the Renesas, Exxidous.

RF and design, these are the two things.

Not two things. Exxidous is the name of the company that we created.

RF business is what we bought from Renesas, and that is what has started generating the revenue. I think, yeah, it's about $65 million was the plan, which comes to about ₹500 crores, you're right.

Because it is a running operational company, so that is the number you would have seen there.

Hi Amit. Amar, first question is on the Power System exports.

How do you see the timeline for the grid utility approvals for us now that we have data center orders basis maybe the quicker timeline? How soon can we expect the grid utility turnaround for us on orders?

That's the first question.

Grid utility, you mean supply or approval process?

In terms of approval and potential orders from the American grid utilities. Is it more like 6 to 12 months or a longer period and some contours around that,

right? It purely depends on what we're talking about.

Americas works very differently than the way we work in India. America, there are 478 utility companies, because every area is divided.

Even if I take top 100 utility companies, that amounts to about 70-75% of the total revenue. Every utility is pretty independent.

Everybody has different timelines. You cannot categorize it's 6 months or 1 year or 3 months or 5 years.

It'll vary from utility to utility.

Sure. The second question is on industrial segment.

We have a very very formidable competition from maybe the likes of Nidec or WEG, etc. Some of them are very very aggressively expanding their manufacturing footprint in India.

My question is more on, in fiscal '27, do you think the delta for us on profitability and growth is more on the rail part of industrial as we execute the propulsion and Giga Tronics book, or do you think industrial motors also will contribute significantly to profitability in '27 or that's the year where we are still not hopeful on the motors profitability? Some color on the industrial versus rail profitability in '27.

Thank you. I think

these are different verticals under the segment of Industrial. Rail is a separate vertical which is led by Dhananjay.

I think he's doing some good work there to turn it around to make sure that it's coming to a much bigger number the way Jitendra did turnaround for the motors business, which is doing fairly well. I'm sure railways also in next few months, quarters should be inching upwards.

It's a combination of both. To your question on competition with the biggies and all, and that's fine.

I think competition is always healthy because that keeps us on the toes. We are just honing our skills on keep building NPDs, build our design capability and also make sure that we are cost-competitive, not cheap, but cost-competitive, so that we continuously keep eliminating the waste from the system.

That's an ongoing effort.

Sure. Thank you, Amar, and good luck.

Thank you.

Hi, sir. Thanks for the opportunity.

I had a question on railways ex-Giga Tronics. What's been the growth rate in revenues for FY '26, and also if you can share any outlook on this piece of the business?

Second, I wanted to understand the pipeline for US transformers if you can share any qualitative color around how things are. I know you've spoken about it in the past, but any L1 status here or how does it work there, what's the size of the opportunity that you're looking at in the medium term?

The final question was on capex if you can just color what will be the FY '27 and '28 capex numbers.

I think you were supposed to be limited to two questions, you have three, four questions asked, but anyway, let me go one by one. Which one do you want me to answer first?

You can take up railways and then transformer for US and then capex.

Your question was specific to Giga Tronics. Giga Tronics,

as Ex-Giga Tronics, what's the growth, sir, and outlook for that,

ex of

Giga Tronics?

Except? Is your question except Giga Tronics or what is the question?

Except Giga Tronics, excluding Giga Tronics.

The breakup we don't give, no. It's part of industrial business, we're not allowed to give the breakup of each of the businesses.

I was actually looking for growth rate, sir, and the outlook.

That's what I'm saying, we don't go specific to each of the business lines in the business. If you talk about Industrial or something, then we can talk about it, but we don't go deeper into each of the businesses.

If you can share some perspective on railways outlook.

Railways I think maybe Dhananjay, if you can give just a flavor of how do you look at the market and your key one or two initiatives there without getting too deep into numbers or anything.

Yeah. Thanks, Amar.

On railways, yes, we see sizable potential with some of the new products that we are working through. In addition to that, we also see some good opportunities on the export side which we have still to explore, long way to go.

Then on the service side is another area where we see good potential for high double-digit growth there, and then of course helps us improve our profitability and margins on that. Thank you.

Good. Thanks, Dhananjay.

Anything on the transformer pipeline

for US?

Hi. Congratulations on a great quarter.

My first question is on the margins. Are we facing any impact of geopolitical issues currently there on the margins, and have we been able to pass on the commodity price impact to the customers and impact on the transformer oil prices, impact on margins or bushings?

If you can give some color on the margin of the Power Systems business, and going ahead, how do you look for FY '27, do you see further expansion in this business margins?

Thanks for the question, but I think a lot of your question have already been answered. One is the numbers.

If you look at Power Systems, if there was stress on the margin, then it would have shown up in the numbers, right? If we are doing better by 200 to 300 basis points on each of these segments, so that means the margin pressure is taken care of.

This margin pressure is not only from what we get from the customer, it's also how operationally efficient we are becoming. I think that's the critical thing, and that's the edge that we have from CG point of view.

What is the second question?

No, that's largely on how is the commodity inflation hitting us and are we being able to pass on to the customer. Is it entirely pass-through or will we see some impact in Q1 coming in on the residual order book which we have, which may get hit because of the commodity inflation?

That is different businesses, different areas. Like I talked about motors, we discussed just now few minutes back, is most of it we have been able to pass on with the steep increase in the pricing.

For other large businesses, it's really not a problem, for example transformer or rest of the large businesses, because you always have the price variation clause with the customers. Whenever commodity goes up and down, it gets passed on to the customer.

Hi sir, thanks for the opportunity. Just had a question, exports, while you don't give the break up between Industrials and Power Systems, could you share what is the overall contribution to your consolidated sales of exports this year?

Right now I think it's very small. It's about 5% approximately.

Again, the aspiration is to be in much larger. As I said, we kind of more than doubled in this previous year, and this year we are taking much more ambitious targets.

Stay tuned on that.

In FY '25, we saw exports contributing about 10%. You're saying it's smaller, about 5-6% now, did we see some kind of decline?

No, it was never 10%.

Sorry?

It was never 10%.

In the overall consolidated mix.

If you include Sweden, Germany, Netherlands, it can go up to 8

to 9%, but

if you talk about from India to outside country, it is around 5

to 7%. Yeah.

Understood, sir. Just my second question is on your railway business.

While you highlighted that you don't give the breakup between railways and non-railways, could you give some direction in terms of margins on the railway business, because you've been mentioning some kind of pressures in the competitive railway business. How do you see margins tracking going ahead?

That's why I said, and I think Dhananjay touched a bit on how he is prioritizing. As in Indian Railways, you won't be able to get too good a margin, important is your operational efficiency.

Second lever that Dhananjay has already activated as a part of overall theme I mentioned is services. Service is going to be a big function of us, and he's already created that vertical and is getting driven, so that'll give us substantial increase in our margins.

Again, it doesn't happen tomorrow, it takes a bit of time. He's executing it fairly well.

That's another lever. Last one I would say is also on the NPD, that's where the activation is on the R&D to get more and more new products that helps us to become more competitive.

These are some of high-level actions are being taken to continuously move this from single-digit margins to double-digit. I think that's the maximum I can reveal to you.

Thank you, Vishesh. On behalf of IIFL Capital, like to thank the management of CG Power for taking the time and discussing the results with us.

Sir, any closing comment that you would like to make?

Thank you, Renu, and thank you everybody. I know there's a large crowd here and interesting questions.

Thank you. Stay tuned with us.

There are exciting days and months and years ahead of us. Thank you for your time with us and appreciate it.

Have a good rest of the day. Cheers.