CG Power Q2 Update: Revenue Falls Short, Stock Gains on ₹748 Crore Expansion Move

Shares of CG Power & Industrial Solutions Ltd gained up to 3% on Wednesday, October 29, despite the company’s second-quarter earnings missing market expectations. The company reported a net profit of ₹286.7 crore, marking over 30% growth from last year. 

Revenue for the quarter stood at ₹2,922.8 crore, up 21% year-on-year but below the estimated ₹3,283 crore. The company’s EBITDA rose 28% from a year ago to ₹377 crore, while margins improved to 12.9%, up 70 basis points from the previous year’s 12.2%. The margin expansion was supported by better pricing and operational efficiencies.

Mixed Performance Across Segments

CG Power’s performance across business divisions was varied. The Industrial Systems segment recorded a 2% decline in sales due to project deferments in the railway sector and lower operating leverage. Margins in this segment were also impacted by a rise in commodity prices, which could not be entirely passed on to customers.

Conversely, the Power Systems business delivered stronger results, with sales increasing by 48% year-on-year to ₹1,254 crore. Margin gains in this segment were driven by better price realisation and improved operating leverage. The company also highlighted that its order backlog stood at ₹13,568 crore, ensuring healthy business visibility in the coming quarters.

Greenfield Expansion and Government Support

A key announcement during the quarter was the board’s approval of a greenfield expansion project worth ₹748 crore for the switchgear business. This investment aims to meet the expected rise in demand for MV/EHV circuit breakers, instrument transformers, and gas-insulated switchgears in both domestic and export markets.

In addition, CG Semi Pvt. Ltd., a subsidiary, qualified for financial assistance under the India Semiconductor Mission’s OSAT scheme. The project, with a total cost of ₹7,584 crore, will receive ₹3,501 crore in central government aid and ₹1,400 crore in state-level support. The company recognised ₹475.38 crore as government grants during the quarter.

Market Reaction and Stock Overview

As of October 29, 2025, 4:01 PM, CG Power & Industrial Solutions share price stood at ₹749, up 3.62% from the previous session. The company’s market capitalisation was ₹1,17,894 crore, with a P/E ratio of 110, a book value of ₹25.1, and a dividend yield of 0.17%.

Over the past year, CG Power & Industrial Solutions share price has fluctuated between ₹811 and ₹518. 

Read More:CG Power Acquires Renesas RF Components Business, Enhancing India's Semiconductor Design Capability

Conclusion

Despite missing revenue and profit estimates in Q2, CG Power & Industrial Solutions continues to display business resilience. The ₹748 crore greenfield expansion and strong order backlog underline its focus on long-term growth.

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