CG Power Q2 Net Profit Soars On ₹8,016 Cr Order Inflow, Beating Estimates

CG Power & Industrial Solutions Ltd. ripped through consensus estimates in its September quarter, reporting revenue of ₹3,802 crore, a 30.1% jump from the ₹2,923 crore recorded a year ago. The topline comfortably cleared the CNBC-TV18 poll figure of ₹3,559.4 crore. More telling is the bottom-line momentum: EBITDA surged 43.1% year-on-year to ₹539.6 crore, far outpacing the estimated ₹444.4 crore. Margin expansion was the real story here, climbing 130 basis points to 14.2% against a year-ago 12.9%, while analysts had actually predicted a contraction to 12.5%.

The order book is the engine behind this performance. Intake hit ₹8,016 crore for the quarter, nearly double the year-ago figure and a massive 61% beat over the ₹4,963 crore consensus. This surge reflects strong demand for EHV products, both domestic and export. Management isn't sitting on its hands; the board approved a ₹68 crore expansion of its power transformer facility to add 10,000 MVA capacity, aiming to complete this within 12-15 months. There’s also a ₹300 crore investment greenlit for OIP bushings and instrument transformers in Ambad, with operations expected to commence in 30-36 months.

Market reaction has been mixed. Shares recovered from intraday lows following the results but are now being sold into, trading 1.6% lower at ₹803.65 on the BSE. The stock remains up 25% this year. With capacity currently maxed out, the focus shifts to execution on these new projects. The GIS brownfield project at Vilholi in Nashik also saw its capex revised upward from ₹35.17 crore to ₹44.62 crore, with 90% of assets set to transfer to the greenfield facility upon commissioning. Traders will watch the December quarter closely to see if this order inflow translates into sustained margin gains.