💰 Financial Performance

Revenue Growth by Segment

Fractional Horsepower (FHP) motors recorded a quantity growth of 55% YoY, LT motors grew 4.2%, and HT motors declined by 1% as of March 2025. The Drives & Automation (D&A) segment, specifically CG Emotron, reported growth in orders and sales within the marine, material handling, and water sectors.

Geographic Revenue Split

The company expanded its global footprint with a new regional office in Dubai to serve the Middle East and Africa (MEA) region. Market expansion also includes Malaysia (380V AC Trailable Point Machines), Vietnam (Hanoi distributor network), France, North America, and South America.

Capital Expenditure

Indian Railways Budget 2025-2026 allocated INR 2,65,000 Cr for capital expenditure, including INR 32,235 Cr for new lines, INR 32,000 Cr for doubling tracks, and INR 58,895 Cr for rolling stock, which directly benefits CG's railway segment.

⚙️ Operational Drivers

Raw Materials

Steel (traction motor stampings), Copper (transformers and motors), and Aluminium (Elite Series motor bodies).

Capacity Expansion

CG D&A is currently expanding its India production facility to meet increased demand for standard products. FHP motors saw a 55% quantity growth driven by the Air Handling segment.

Raw Material Costs

Surging commodity prices are noted as a factor for sequential deceleration in industrial production, impacting input costs for motor manufacturing.

Manufacturing Efficiency

Achieved a 50% reduction in Customer Complaint Rate Percentage (CCRP) and a 2-week improvement in average lead time from customer purchase to testing.

Logistics & Distribution

Maintains a network of over 300 Authorized Service Centres with an 85% Turnaround Time (TAT) adherence rate.

📈 Strategic Growth

Expected Growth Rate

3.70%

Growth Strategy

Growth will be achieved through the acquisition of a 55.60% stake in G.G.Tronics for 'KAVACH' safety systems, expansion into the EV motor market (3-wheelers to heavy trucks), and localized support via a new Dubai office for the MEA region.

Products & Services

EV Traction Motors, KAVACH Electronic Safety Signalling, Traction Converters, 380V AC Trailable Point Machines, FHP/LT/HT Motors, Pumps, Fans, and Battery Energy Storage Systems (BESS).

Brand Portfolio

CG, CG Emotron, CG Vishwas, Elite Series.

New Products/Services

Launched 380V AC Trailable Point Machines for Malaysian Railways and indigenously developed EV Motors and Controllers for LCVs, MCVs, and HCVs.

Market Expansion

Targeting the MEA region via Dubai (2025), expanding direct channels in France and North America, and deepening pump segment presence in Central and Western India.

Market Share & Ranking

CG is a leading provider of Railway Signalling Systems and Technology solutions in India.

Strategic Alliances

Acquired 55.60% stake in G.G.Tronics India Private Limited to leverage synergies in railway transport safety.

🌍 External Factors

Industry Trends

The power sector is shifting toward 50% non-fossil fuel sources by 2030. Railways are moving toward 100% electrification by 2030 and implementing the KAVACH safety system across the network.

Competitive Landscape

The government is encouraging greater private sector participation in transmission projects, increasing competition in the power systems sector.

Competitive Moat

Durable advantages include specialized 'KAVACH' technology, a massive service network of 300+ centers, and indigenous development of EV traction motors which are difficult for competitors to replicate quickly.

Macro Economic Sensitivity

Industrial production growth is muted at 3.7% on average, sensitive to commodity price surges and global supply chain disruptions.

Consumer Behavior

Shift toward e-commerce in the ECD segment and increased demand for energy-efficient 'Smart Motors' and prepaid smart meters (19.79 Cr units sanctioned).

Geopolitical Risks

Geopolitical impacts are noted as affecting the D&A segment, though the company managed to grow orders despite these factors.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with RDSS (Revamped Distribution Sector Scheme) for smart metering and loss reduction projects worth INR 1,46,000 Cr.

Environmental Compliance

Achieved SUP-Free (Single-Use Plastic) certification for FHP unit and ZWTL 'Aspiring' certification for LT Motors Unit 1.

Legal Contingencies

The company received warning letters from NSE and BSE on December 5, 2025, regarding delayed compliance with Regulation 31A(8) of SEBI LODR related to promoter reclassification.

⚠️ Risk Analysis

Key Uncertainties

Declining trend in LT Motors market due to industrial stagnancy; potential for future SEBI actions if disclosure lapses recur.

Geographic Concentration Risk

Deepening presence in Central and Western India for pumps, while expanding in Northern and Eastern markets.

Third Party Dependencies

Dependency on a global partner network for CG Emotron's expansion in Middle East and South America.

Technology Obsolescence Risk

Mitigated by R&D in Industry 4.0, EV motors, and microprocessor-driven switching for traction converters.

Credit & Counterparty Risk

RDSS scheme aims to improve financial sustainability of DISCOMs, reducing ACS-ARR gap to INR 0.45 per kWh, which improves counterparty credit for CG's power segment.