CG Power Reports Q2 Net Profit Of ₹412 Crore, Up From ₹290 Crore YoY

Market snapshot: CG Power and Industrial Solutions reported its Q2 financial results, delivering significant year-on-year growth across key operational and financial metrics. Consolidated net profit, EBITDA, and revenue all exceeded market consensus estimates for the quarter.

Data Snapshot

• Q2 consolidated net profit reached ₹412 crore, compared to ₹290 crore in Q2 of the previous fiscal year, beating consensus estimates of ₹359 crore.
• Q2 consolidated revenue stood at ₹3,800 crore, up from ₹2,900 crore YoY and above estimate of ₹3,559 crore.
• Q2 EBITDA came in at ₹540 crore versus ₹386 crore YoY, surpassing estimate of ₹444 crore.
• EBITDA margin for Q2 expanded to 14.2%, exceeding estimate of 12.5%.

What's Changed

• Q2 net profit grew ≈42.07% YoY (derived: ₹412 crore vs ₹290 crore).
• Q2 revenue increased ≈31.03% YoY (derived: ₹3,800 crore vs ₹2,900 crore).
• Q2 EBITDA rose ≈39.90% YoY (derived: ₹540 crore vs ₹386 crore).

Key Takeaways

• Consolidated net profit of ₹412 crore beat consensus expectations of ₹359 crore.
• Revenue of ₹3,800 crore surpassed street estimates of ₹3,559 crore, demonstrating robust execution.
• EBITDA margin reached 14.2%, well ahead of the estimated 12.5% threshold.

SAHI Perspective

CG Power's Q2 performance demonstrates operating leverage as revenue growth of 31% translates into higher margin expansion. The beat across all major lines reflects sustained demand in industrial electricals and power transmission equipment.

Market Implications

Strong operational performance provides positive fundamental support for capital goods and power equipment manufacturers.

Trading Signals

Market Bias: Bullish

Strong Q2 earnings print with net profit beating estimates at ₹412 crore alongside EBITDA margin expansion to 14.2% provides a positive operational signal.

Overweight: Capital Goods, Power Equipment

Trigger Factors:

• Quarterly order intake announcements
• Execution commentary in earnings call

Time Horizon: Near-term (0-3 months)

Industry Context

The capital goods and power transmission sector continues to benefit from industrial capex, grid modernization, and infrastructure demand across domestic markets.

Key Risks to Watch

• Fluctuations in primary metal and raw material prices
• Execution delays in major project deliveries

Recent Developments

In July 2026, the company approved a brownfield expansion project for Extra High Voltage Gas Insulated Switchgear at Vilholi, Nashik with an estimated project cost of ₹35.17 crore.

Closing Insight

Operating efficiency gains combined with demand tailwinds in capital goods position CG Power favorably for near-term fundamental performance.

High Performance Trading with SAHI.