CG Power stock rises 4% on Q2 earnings, govt aid for semiconductor unit boosts future outlook
CG Power stock ended 4.3% higher at ₹753.45 after Q2 earnings on Wednesday.
- Oct 29, 2025,
- Updated Oct 29, 2025 4:52 PM IST
CG Power's stock closed with a notable gain of 4.3% at ₹753.45 on Wednesday following the release of its quarterly results and updates on government assistance for its semiconductor subsidiary. Despite the positive closing, the stock has remained flat over the year to date.
In its second quarter, CG Power reported a net profit of ₹286.7 crore, marking a rise of over 30% compared to the previous year. Revenue increased 21% year-on-year to ₹2,922.8 crore. The company's EBITDA grew 28% to ₹377 crore while margins improved to 12.9%.
In its post-earnings release, the company said that orders remained robust with the backlog now at ₹13,568 crore, underpinning visibility for multiple quarters. The power systems segment saw sales surge 48% to ₹1,254 crore, with margin expansion supported by better price realisation and improved operating leverage.
In contrast, the Industrial Systems business experienced a 2% drop in sales due to project deferments in the railway segment and margin compression from increased commodity costs and lower operating leverage. CG Power’s board approved a greenfield expansion of its switchgear business with a capital expenditure commitment of ₹748 crore, aimed at meeting rising demand for MV/EHV circuit breakers, instrument transformers, and gas insulated switchgears in both domestic and export markets.
CG Power's subsidiary, CG Semi Pvt. Ltd., has become eligible for capital assistance under the OSAT facility launched by the India Semiconductor Mission. The approval is for a five-year period, with the central government providing assistance of ₹3,501 crore out of the total project cost of ₹7,584 crore, CG Power said in its notes to account.
There will also be additional state government support worth ₹1,400 crore. During the reporting quarter, CGSEMI recognised ₹475.38 crore as a government grant, which has been netted off against the carrying amount of related assets as of September 30, 2025.
CG Power competes with industry peers such as Bharat Heavy Electricals Ltd and Siemens Ltd. The extension of government support and expansion plans are expected to reinforce CG Power's position in the domestic and export markets, while the substantial order backlog offers visibility for future quarters.
CG Power's stock closed with a notable gain of 4.3% at ₹753.45 on Wednesday following the release of its quarterly results and updates on government assistance for its semiconductor subsidiary. Despite the positive closing, the stock has remained flat over the year to date.
In its second quarter, CG Power reported a net profit of ₹286.7 crore, marking a rise of over 30% compared to the previous year. Revenue increased 21% year-on-year to ₹2,922.8 crore. The company's EBITDA grew 28% to ₹377 crore while margins improved to 12.9%.
In its post-earnings release, the company said that orders remained robust with the backlog now at ₹13,568 crore, underpinning visibility for multiple quarters. The power systems segment saw sales surge 48% to ₹1,254 crore, with margin expansion supported by better price realisation and improved operating leverage.
In contrast, the Industrial Systems business experienced a 2% drop in sales due to project deferments in the railway segment and margin compression from increased commodity costs and lower operating leverage. CG Power’s board approved a greenfield expansion of its switchgear business with a capital expenditure commitment of ₹748 crore, aimed at meeting rising demand for MV/EHV circuit breakers, instrument transformers, and gas insulated switchgears in both domestic and export markets.
CG Power's subsidiary, CG Semi Pvt. Ltd., has become eligible for capital assistance under the OSAT facility launched by the India Semiconductor Mission. The approval is for a five-year period, with the central government providing assistance of ₹3,501 crore out of the total project cost of ₹7,584 crore, CG Power said in its notes to account.
There will also be additional state government support worth ₹1,400 crore. During the reporting quarter, CGSEMI recognised ₹475.38 crore as a government grant, which has been netted off against the carrying amount of related assets as of September 30, 2025.
CG Power competes with industry peers such as Bharat Heavy Electricals Ltd and Siemens Ltd. The extension of government support and expansion plans are expected to reinforce CG Power's position in the domestic and export markets, while the substantial order backlog offers visibility for future quarters.