CG Power Q4 Results: Power segment leads growth; Margins highest in nearly two years

CG Power and Industrial Solutions Ltd. reported its March quarter results on Wednesday, May 6, where revenues remained largely in line with market expectations, but the company delivered an beat on both operational margins and profitability, driven mainly its Power segment.

For the March quarter, CG Power reported a consolidated revenue of ₹3,441 crore, marking a 25% year-on-year (YoY) increase. The company’s Net Profit (PAT) surged by 32.5% from last year to ₹363 crore, in-line with expectations of ₹333 crore.

Operational efficiency resulted in the company's Earnings Before Interest, Before Interest, Tax, Depreciation and Amortisation (EBITDA) increase by 35% year-on-year to ₹466.1 crore, while margins expanded to 13.55% from 12.54% last year and also higher than the poll projection of 13.1%. The margin figure was the highest since the first quarter of financial year 2025.

Growth was led by the power segment, where revenue increased by 50% from last year to ₹1,487 crore led by strong execution across projects. EBIT margin for this segment also expanded to 23.8% from 20.9% last year.

On the flip side, the Industrial segment revenue grew only 2% from the year-ago quarter to ₹1,791 crore. Segment margins declined to 8.9% from 11% in the year-ago quarter. Competitive pricing within the railway business and rising commodity costs were behind the pressure on margins in this segment, as per the management.

CG Power also reported financial details of its Semiconductor business, which contributed ₹155.6 crore to the company's topline. Order inflows during the quarter increased by nearly 40% year-on-year to ₹5,335 crore, pushing the total unexecuted order book to ₹17,107 crore.

Shares of CG Power recovered from the day's low to end little changed at ₹826.4. The stock has risen 20% over the last one month.