CG Power Subsidiary Gets ₹433-Crore Kavach Order as Q2 Inflows Rise 78%

Market snapshot: CG Power and Industrial Solutions reported a 78% year-on-year surge in Q2 order inflows to ₹8,485 crore, alongside a ₹433 crore Kavach order won by its subsidiary GG Tronics India. Consolidated revenue for the quarter grew 30% YoY to ₹3,802 crore, while net profit expanded 44% YoY to ₹284 crore.

Data Snapshot

• Q2 order intake rose 78% YoY to ₹8,485 crore, elevating the unexecuted order backlog to ₹23,646 crore.
• Subsidiary GG Tronics India secured a ₹433 crore order from Chittaranjan Locomotive Works for on-board Kavach equipment supply and commissioning.
• Q2 revenue increased 30% YoY to ₹3,802 crore, while profit after tax expanded 44% YoY to ₹284 crore.

What's Changed

• Order intake accelerated from ₹4,766 crore in Q2 FY25 to ₹8,485 crore in Q2 FY26.
• Unexecuted order backlog expanded 58% YoY from ₹14,966 crore to ₹23,646 crore.
• Quarterly sales grew to ₹3,802 crore compared to ₹2,923 crore in the prior-year period.

Key Takeaways

• Power systems demand drove strong operational performance across transformer and EHV business lines.
• Subsidiary GG Tronics expanded CG Power's presence in Indian Railways safety signalling through the ₹433 crore Kavach equipment deal.
• Balance sheet momentum remains supported by robust order intake exceeding quarterly billings.

SAHI Perspective

CG Power continues to benefit from structural capital expenditure cycles in power transmission and railway infrastructure. The substantial order book expansion provides multi-quarter revenue execution visibility.

Market Implications

Increased order intake in power equipment and railway safety systems signals ongoing capital investment strength across electrical capital goods and public transport infrastructure.

Trading Signals

Market Bias: Bullish

Order backlog expansion of 58% YoY to ₹23,646 crore and quarterly order intake growth of 78% YoY to ₹8,485 crore support multi-quarter top-line visibility.

Overweight: Capital Goods, Heavy Electrical Equipment, Railway Signalling

Trigger Factors:

• Execution progress on the ₹433 crore Kavach 4.0 equipment contract
• Capacity utilization across transformer manufacturing plants

Time Horizon: Medium-term (3-12 months)

Industry Context

India's power transmission expansion and national railway modernization initiatives have driven sustained demand for extra high voltage transformers, switchgears, and electronic train protection systems.

Key Risks to Watch

• Fluctuations in raw material costs including copper and electrical steel
• Execution timelines on complex railway equipment installation contracts

Recent Developments

CG Power operationalized its greenfield power transformer manufacturing plant in Madhya Pradesh, expanding manufacturing capacity for 220 kV to 1200 kV class transformers.

Closing Insight

Sustained order inflow growth across both core electrical systems and specialized railway technology positions CG Power for high execution density over the coming fiscal periods.

High Performance Trading with SAHI.