CG Power Q2 Results, October 23, 2026: Profit Up 46% as Power Systems Surge

The CG Power Q2 results, filed with the exchanges on October 23, 2026, were the kind that make a busy results day stop for a moment. The Murugappa group company reported standalone profit after tax of ₹450 crore for the September quarter, up 46% from ₹307 crore a year earlier, on sales that grew 32% to ₹3,505 crore. Those numbers come from the company’s press release filed on NSE.

CG Power Q2 results: the headline numbers

Standalone EBITDA came in at ₹637 crore, 47% higher year on year, and the EBITDA margin widened to 18.2% from 16.4%. Profit before tax rose 47% to ₹602 crore. On a sequential basis, sales were up 14% and PAT up 24% over the June quarter.

The consolidated picture is a touch softer but still strong. Consolidated sales rose 30% to ₹3,802 crore and consolidated PAT grew 44% to ₹409 crore. The gap is mostly the semiconductor push: the company said investments in CG Semi and Axiro cost about ₹35 crore in the quarter, or roughly 91 basis points of consolidated margin.

Power Systems did the heavy lifting

This is where the story really sits. Power Systems, which makes transformers and switchgear, grew sales 41% to ₹1,769 crore. Its segment profit (PBIT) jumped 71% to ₹443 crore, and the PBIT margin climbed to 25.0% from 20.7% a year ago. The company put the 430 basis point gain down to better price realisation and operating leverage.

Industrial Systems, the motors and drives business, was steadier. Sales rose 25% to ₹1,738 crore and PBIT rose 22% to ₹164 crore, but the margin slipped slightly to 9.4% from 9.7% year on year. It did improve 60 basis points over the June quarter, helped by motors.

Orders are the bigger tell

Standalone order intake for the quarter was ₹8,016 crore, up 90% year on year, and the unexecuted order backlog stood at ₹21,820 crore at the end of September, 61% higher than a year earlier. Power Systems alone booked ₹6,258 crore of orders, up 137%, and carries a backlog of ₹18,964 crore. On a consolidated basis, the backlog was ₹23,646 crore.

We’d watch this number more closely than the profit line. A backlog that size, against quarterly sales of about ₹3,500 crore, gives the company several quarters of revenue already on the books, provided it can execute.

Capacity is the next bottleneck

The company is clearly running hot. It said its switchgear plants are at peak utilisation and its existing T3 power transformer plant is at maximum capacity. The board approved a set of expansions:

• About ₹300 crore at the S1 unit in Ambad to raise capacity for OIP bushings and instrument transformers up to 800 kV, with production expected to start in 30-36 months.
• About ₹15.31 crore to add 3,600 EHV circuit breakers a year at the S3 Unit-II facility, taking it to 10,800 units.
• An extra ₹9.45 crore for the GIS project at Vilholi, Nashik, lifting that capex to about ₹44.62 crore.
• About ₹68 crore to add 10,000 MVA at T3, taking it to 75,000 MVA within 12-15 months.

It also rolled out the first transformer from its new Sehore, Madhya Pradesh plant on September 4, 2026. The company describes it as India’s largest single-location power transformer facility, built for 220 kV to 1,200 kV units and able to roll out 35 transformers a month.

What it means for investors

The quarter backs up the grid-capex theme that has driven power equipment stocks: demand for transformers and high-voltage gear is outrunning supply, and pricing is holding. The open questions are execution on that large backlog, whether Power Systems margins can stay near 25% as new capacity comes in, and how long the semiconductor business keeps weighing on consolidated profit. If you’re reading results like these for the first time, our guide on how to analyse quarterly results walks through margins, order books and segment numbers. For another big Q2 print from the same day, see our take on JSW Steel’s Q2 results.

Disclaimer: This article is for information and education only and is not investment advice. Please do your own research or consult a SEBI-registered adviser before making investment decisions.