CG Power Q3 Results: Stock falls 4% after earnings miss, dividend declared

CG Power and Industrial Solutions Ltd reported a mixed performance for the third quarter of FY26, with healthy year-on-year growth across key metrics but results falling short of Street expectations amid

margin pressure and one-off cost impacts.

The company reported a net profit of ₹284 crore for the quarter, lower than the CNBC-TV18 poll estimate of ₹314.7 crore. Revenue stood at ₹3,175.4 crore, compared with the poll forecast of ₹3,204.8 crore.

EBITDA came in at ₹397.4 crore, missing estimates of ₹425 crore, while operating margins declined to 12.5% versus the poll expectation of 13.3%.

On a year-on-year basis, net profit rose 19.3% from ₹237.8 crore, while revenue increased 26.2% from ₹2,515 crore. EBITDA grew 20% from ₹330.3 crore, though margins softened from 13.1% in the year-ago quarter.

The company said results were impacted by costs linked to the implementation of new labour codes. The Government of India notified the new labour codes with effect from November 21, 2025, resulting in an increase in gratuity and leave liabilities of around ₹35.6 crore, or approximately ₹26.6 crore net of tax.

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CG Power’s board declared an interim dividend of ₹1.30 per equity share, representing 65% of the face value of ₹2 per share, for FY26. The record date has been fixed as February 1, 2026, with payment to be completed 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 from June 11, 2026, subject to shareholder approval.

Post the earnings announcement, shares of CG Power and Industrial Solutions Ltd were trading nearly 4% lower on the NSE as of 3:08 pm.

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