Synopsis:
CG Power’s subsidiary, CG Semi, has launched India’s first full-service OSAT facility in Sanand, Gujarat, marking a major step toward semiconductor self-reliance and boosting its market outlook.
The large cap company providing global solutions for sustainable electrical energy is in the spotlight today after launching its first Outsourced Semiconductor Assembly and Test (OSAT) facility.
With the market capitalization of Rs. 1,08,096.53 crore, the shares of CG Power & Industrial Solutions Ltd were trading at Rs. 686, up by 3.31 percent from its previous day’s close price of Rs. 664 per equity share. The stock has reached an intraday high of Rs. 687.50.
What’s the news?
CG Semi Private Limited, a subsidiary of CG Power and part of the Murugappa Group, has launched its first Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, making it one of India’s first full-service OSAT providers.
Backed by central and state support, and in collaboration with Renesas and Stars Microelectronics, the company is investing Rs. 7,600 crore (~USD 870 million) over five years to build two facilities (G1 and G2).
The G1 facility, inaugurated on 28th August 2025, will handle chip assembly, packaging, and testing with a peak capacity of 0.5 million units per day, targeting commercial production in 2026.
G2 facility, under construction nearby, will be ready by end-2026 with a much larger capacity of 14.5 million units per day. Together, the projects will create over 5,000 direct and indirect jobs, boosting India’s semiconductor self-reliance, and support global markets.
Management View
Chairman Vellayan Subbiah referred to the opening of CG Semi’s OSAT facility on August 28, 2025, as a national milestone, emphasizing the cooperation between the government and industry in boosting India’s technological sovereignty.
In addition to investing in workforce development by educating Indian engineers and technicians in Malaysia, CG Semi has put together a highly skilled semiconductor team. The company hopes to boost the domestic semiconductor ecosystem and expedite India’s Atmanirbhar Bharat vision with this launch.
CG Semi, based in Sanand, Gujarat, is one of India’s first dedicated OSAT companies, formed as a joint venture between CG Power (Murugappa Group), Renesas Electronics, and Stars Microelectronics.
It provides end-to-end semiconductor assembly and testing solutions for both advanced and legacy packages, serving industries such as automotive, defense, infrastructure, and IoT.
Financial Outlook
CG Power & Industrial Solutions Ltd posted revenue of Rs. 2,878 crore in Q1 FY2026, up 29.17 percent YoY from Rs. 2,228 crore and up by 4.54 percent QoQ from Rs. 2,753 crore. Net profit surged 10.79 percent YoY from Rs. 241 crore to Rs. 267 crore, but declined by 2.55 percent QoQ from Rs. 274 crore.
At the moment, the company’s P/E ratio is 106x higher as compared to its industry P/E 44.7x, and its ROE and ROCE are 27.7 percent and 37.5 percent, respectively, showing companies financial performance, whereas the D/E ratio of the company stands at 0.01.
Written by Akshay Sanghavi
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