CG Power Q1 profit up, misses estimates as margins shrink; semiconductor losses widen

CG Power and Industrial Solutions posted a consolidated net profit of ₹313 crore for the quarter ended June, up 16.4% from ₹269.2 crore a year earlier. The profit, however, was below the CNBC-TV18 poll estimate of ₹349 crore.

The Murugappa Group company's revenue from operations rose 14% year-on-year to ₹3,280.8 crore, compared with ₹2,878 crore in the year-ago period, but missed the CNBC-TV18 estimate of ₹3,500 crore.

Operating performance was also weaker than expected. EBITDA increased 4% to ₹397 crore from ₹381.7 crore a year ago, against the poll estimate of ₹472.3 crore. EBITDA margin narrowed to 12% from 13.3% a year earlier and came in below the estimated 13.5%, indicating pressure on profitability.

The company's Power Systems business continued to drive growth, with revenue rising to ₹1,398.2 crore from ₹1,070.1 crore a year ago. Revenue from the Industrial Systems segment increased to ₹1,789.5 crore from ₹1,691.5 crore.

Its nascent Semiconductor business generated ₹94 crore in revenue during the quarter but remained loss-making. The segment reported a ₹50 crore loss, widening sharply from a loss of ₹8.7 crore in the corresponding quarter last year as investments in the business continued.

Separately, the board approved a brownfield expansion of its EHV GIS manufacturing facility at Vilholi, Nashik. The project, with an estimated cost of ₹35.2 crore (net of taxes), will double the plant's manufacturing capacity to address a growing order pipeline. The expansion is expected to be completed within four to six months and will be funded through internal accruals and/or equity.

Despite the earnings miss, CG Power shares recovered from the day's lows after the results announcement and ended Friday's session nearly unchanged at ₹883. The stock has rallied more than 66% over the past six months and is up about 38% so far in 2026.

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