CG Power & Industrial Solutions delivered exceptional Q2 results that significantly exceeded market expectations across key metrics. According to latest reports from Business Standard, the company's consolidated net profit surged 44% to ₹409.09 crore compared to ₹284.44 crore in the year-ago period. The company's total income increased substantially to ₹3,883.25 crore from ₹2,988.89 crore in Q2 FY26, demonstrating robust revenue growth. The power systems segment revenue reached ₹1,766.76 crore against ₹1,254.49 crore in the previous year, while the industrial systems business contributed ₹1,868.61 crore compared to ₹1,533.33 crore in July-September FY26.
The company's board has approved significant capacity expansion plans to meet growing market demand. As reported by CNBC TV18, CG Power will increase power transformer facility capacity by 10,000 MVA in the existing facility, with an estimated investment of ₹68 crore and completion expected within 12-15 months. Additionally, the board approved ₹300 crore investment to enhance manufacturing capacity of OIP bushings and instrument transformers in Ambad, capable of producing up to 4,236 equivalent units per year. This project is expected to commence operations within 30-36 months. The company has also enhanced its capital expenditure plans, with the board approving ₹15.31 crore investment to enhance EHV circuit breaker manufacturing capacity by 3,600 units annually at S3 Unit-II facility.
Despite the strong results, CG Power shares experienced mixed trading patterns following the announcement. According to Business Standard, shares were trading at ₹807.80 apiece, down 1% on BSE after the results were announced. The stock had recovered from intraday lows but is witnessing selling pressure after the initial recovery. The stock has gained 25% year-to-date, reflecting positive investor sentiment despite the recent volatility, with the company maintaining its position as a leader in the Electrical Engineering Industry across its two business lines.
The company has also enhanced its capital expenditure plans for ongoing projects. As reported by CNBC TV18, CG Power increased the capex for the GIS brownfield project at Vilholi in Nashik from ₹35.17 crore to ₹44.62 crore. Nearly 90% of these projects' assets are likely to be transferred to the Greenfield facility upon commissioning, indicating strategic infrastructure development for future growth. The enhanced capex reflects the company's commitment to expanding manufacturing capabilities across multiple product lines.
