CG Power Q3FY26 Earnings Results Out: Profit Grows YoY, Margins And Earnings Miss Estimates

CG Power has reported a mixed set of results for the third quarter of FY26. While the company delivered healthy year-on-year growth across key financial metrics, its performance fell short of Street expectations due to margin pressure and one-off cost impacts.

For the December quarter, CG Power posted a net profit of ₹284 crore, below market estimates of ₹314.7 crore. Revenue came in at ₹3,175.4 crore, slightly lower than the expected ₹3,204.8 crore. The softer-than-expected numbers led to disappointment among investors despite strong annual growth.

EBITDA And Margin Pressure

EBITDA for the quarter stood at ₹397.4 crore, missing estimates of ₹425 crore. Operating margins declined to 12.5%, compared with the Street expectation of 13.3%. Margins also softened on a year-on-year basis, down from 13.1% in the same quarter last year.

The company stated that margins were impacted by higher costs linked to the implementation of new labour codes. These changes came into effect from November 21, 2025, and resulted in an increase in gratuity and leave-related liabilities of around ₹35.6 crore, or about ₹26.6 crore net of tax.

Strong Year-On-Year Growth

Despite missing estimates, CG Power delivered solid growth compared to last year. Net profit rose 19.3% year-on-year from ₹237.8 crore, while revenue increased 26.2% from ₹2,515 crore. EBITDA grew 20% from ₹330.3 crore, reflecting healthy operational momentum, even as margins faced pressure.

Dividend And Board Decisions

CG Power’s board declared an interim dividend of ₹1.30 per equity share, which is 65% of the face value of ₹2 per share, for FY26. The record date is February 1, 2026, and the dividend will be paid within 30 days.

The board also approved the re-appointment of Sriram Sivaram as a non-executive independent director for a second term of five years starting June 11, 2026, subject to shareholder approval.

CG Power Share Price Reaction And Order Win

Following the earnings announcement, CG Power shares were trading nearly 4% lower on the NSE during afternoon trade, reflecting investor concerns over margin pressure and earnings miss.

Separately, the company recently secured its largest-ever single order worth around ₹900 crore from Tallgrass Integrated Logistics Solutions LLC in the US. This export order marks CG Power’s entry into the global data centre segment, with the company set to supply high-reliability power transformers for hyperscale data centres. 

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Conclusion

CG Power’s Q3FY26 results highlighted strong year-on-year growth but also underscored challenges from cost pressures and margin softness. While near-term market sentiment remained cautious, the large export order and steady operational growth point to longer-term opportunities for the company.

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