Semiconductor stock falls 4% after announcing its Q3 results

Synopsis: CG Power shares drop 4% after Q3 results. Let’s take a look at the company’s quarterly performance and also see how the semiconductor segment performed in the quarter.

The shares of a Murugappa Group company specialising in the design, manufacturing, and marketing of electrical engineering products for power and industrial systems are in focus following their Q3 results, and let’s also explore how the semiconductor segment performed in the Quarter.

With a market capitalization of Rs. 83,689.00 Crores on Tuesday, the shares of CG Power and Industrial Solutions Ltd declined upto 4.3 percent, reaching a low of Rs. 525.50 compared to its previous close of Rs. 549.45.

What Happened

CG Power and Industrial Solutions Ltd, engaged in the design, manufacturing, and marketing of electrical engineering products for power and industrial systems are in focus as they have announced their Q3 Results as follows: 

Its Revenue from operations rose by 26 percent YoY from Rs. 2515.68 Crores in Q3FY25 to Rs. 3175.35 Crores in Q3FY26, and it rose by 9 percent QoQ from Rs. 2922.79 Crores in Q2FY26 to Rs. 3175.35 Crores in Q3FY26.

Its Net Profit YoY rose by 19.3 percent from Rs. 237.85 Crores in Q3FY25 to Rs. 283.91 Crores in Q3FY26, and on a QoQ basis, it decreased by 0.18 percent from Rs. 284.44 Crores in Q2FY26 to Rs. 283.91 Crores in Q3FY26. 

The earnings per share (EPS) for the quarterly period stood at Rs. 1.81, compared to Rs. 1.57  in the previous year’s quarter. Along with the results, the company has also announced payment of an Interim Dividend of Rs. 1.30 per equity share, i.e., 65% on the face value of Rs. 2 per share, for the Financial Year 2025–26. The Record Date for determining the members eligible to receive the aforesaid Interim Dividend is Sunday, 1st February, 2026.

Revenue Segmentation 

• Power Systems: Revenue rose to Rs. 1,326.29 crore from Rs. 1,254.49 crore, with 5.7 percent QoQ growth.
• Industrial Systems: Revenue increased to Rs. 1,730.84 crore from Rs. 1533.33 crore, up 12.9 percent QoQ.
• Semiconductors: Revenue stood at Rs. 110.79 crore from Rs. 127.89 crore with a decline of 13.4 percent QoQ basis.
• Others: Revenue surged to Rs. 9.05 crore from Rs. 7.44 crore, with 21.6 percent QoQ growth.

As of the quarter ended March 31, 2025, the company started reporting its OSAT and RF Components business as a separate “Semiconductors” segment. Earlier, this business was included under “Others,” so past figures were reclassified for comparison.

The order intake for the quarter stood at Rs. 4,096 Crore, registering a 13 percent year-on-year growth. The unexecuted order backlog as of 31st December 2025 reached Rs. 14,859 Crores, reflecting a strong 66 percent YoY increase.

Recent Update 

CG has secured its largest-ever single order, an Rs. 900 crore (USD 99.2 million) export contract from Tallgrass Integrated Logistics Solutions LLC, USA—for a large-scale hyperscale data center project. 

Received on 16 January 2026, the order involves the supply of specially engineered power transformers designed to meet stringent reliability, efficiency, and uptime requirements. The contract will be executed over 12–20 months, with deliveries on an FAS Mumbai Port basis.

Company Overview & Others

CG Power and Industrial Solutions Ltd (formerly Crompton Greaves), part of the Murugappa Group since 2020, is a leading Mumbai-based engineering conglomerate. It specialises in manufacturing products for power transmission, distribution, and industrial applications, including transformers, reactors, switchgears, and railway traction motors. The company operates 18 manufacturing units across India and Sweden, serving global markets. 

The company shows strong profitability metrics, with ROCE of 37.5% and ROE of 27.7%, indicating efficient use of both capital employed and shareholders’ equity. A very low debt-to-equity ratio of 0.02 highlights a conservative capital structure, reducing financial risk and giving the business flexibility to fund growth internally.

Additionally, the company has an impressive 3-year average ROE of 45%, reflecting a consistently strong return track record. This is complemented by a healthy dividend payout ratio of 19.4%, suggesting a balanced approach between rewarding shareholders and retaining earnings for future growth.

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