CG Power shares zoom 10% as Q3 profit surges 18% YoY to ₹285 crore; check what analysts said

The stock was trading 9.76% higher at ₹582.45 per equity share as of 3:05 pm.

The scrip lost more than 11% over the month and nearly 9% on a year-to-date basis.

While the share reached a 52-week high of ₹797.55 on September 17, 2025, it touched a year’s low of ₹517.70 apiece on April 7, 2025.

Q3 results

CG Power and Industrial Solutions on Tuesday posted a 18.43% year-on-year (YoY) surge in its consolidated net profit to ₹284.83 crore for the December quarter of FY26, mainly on the back of higher revenues.

In the same period a year earlier, it had logged a profit of ₹240.53 crore, the company said in a statement.

Its revenue from operations advanced 26.22% annually to ₹3,175.35 crore during the quarter under review, compared to ₹2,515.68 crore in the third quarter of FY25.

At an operational level, its EBITDA (earnings before interest, tax, depreciation and amortisation), also known as operating profit, stood at ₹474 crore for Q3FY26, reflecting a 30% YoY jump from ₹365 crore in the year-ago period.

Its EBITDA margin improved to 14.9% for the reporting period, as against 14.5% in Q3FY25.

“Margin gains driven by strong standalone performance were offset by continued investment in the talent pool for semiconductor businesses and deferred revenues in Axiro on account of holiday-related timing of customer activity (total semiconductor segment impact of 41 Cr, 130 bps),” the company stated.

Its annualised Return on capital employed (ROCE) for the quarter stood at 21%, it noted.

The firm’s order intake for the quarter was at ₹4,372 crore, and the unexecuted order backlog as of December 31, 2025, was 62% higher YoY at ₹15,753 crore.

Dividend declared

The board of directors of CG Power also approved the payment of an interim dividend of ₹1.30 per equity share, i.e., 65% on the face value of ₹2 per share for FY26.

The board also fixed February 1, 2026, as the record date for the same.

The board also approved the reclassification of Algavista Greentech Pvt Ltd, belonging to the members of the promoter/promoter group of the company, to "public category" (outgoing promoters).

What analysts said

In a note, analysts at JP Morgan said that CG Power’s Q3 revenue, EBITDA, and profit after tax (PAT) were ahead of their estimates. However, its consolidated EBITDA margin at 12.5% fell by 65 basis points (bps) YoY and 38bps QoQ due to commodity price pressure for the reporting quarter. The company’s consolidated order inflow, which stood at ₹43.7 billion, was flat YoY and 7% below JP Morgan’s estimate.

Despite this, JP Morgan analysts noted that the firm continued facing healthy demand for power system products across power transformers, distribution transformers, and switchgears in India, saw sharp growth in exports across product lines, with export orders rising 50% annually in 9MFY26. Additionally, it managed to enter into large markets like data centers in the US, as shown by recent large order announcements.

Nomura said the company’s order pipeline grew 50% YoY, with a robust order book providing multi-quarter visibility. Its EBITDA was 9% lower than the estimate as commodity cost pressures affected its margin. The analysts, however, cut their EPS estimates by 7-9% due to commodity headwinds and frontloaded costs, pegging FY26F-28F EPS at 32% CAGR.

Analysts at Nuvama noted that CG Power reported strong execution, but missed its EBITDA estimate by 5% as industrial margins softened due to commodity pressures, weaker realisations, and adverse railway mix. The firm’s growth story was underpinned by accelerated transformer capex, while OSAT, or Axiro, provided post-FY29 optionality.

CG Power and Industrial Solutions has a total market capitalisation of ₹91,531.89 crore, as of January 28, 2026, according to data on the NSE.