CG Power and Industrial Solutions reported strong Q2 FY27 results with consolidated revenue at Rs 3,801.54 crore and PAT at Rs 409.09 crore. The company also announced a Rs 390 crore capex plan across four key projects to expand manufacturing capacity, signaling management's confidence in the long-term order pipeline.
CG Power Q2 Profit Surges 44% YoY, Boosts Capacity
Consolidated revenue stood at Rs 3,801.54 crore, with a consolidated PAT of Rs 409.09 crore.
Reader Takeaway: Strong earnings growth driven by rising demand, tempered by the execution risks of multi-year capacity expansion projects.
What just happened
CG Power and Industrial Solutions reported its unaudited financial results for the second quarter of FY27. On a consolidated basis, revenue grew significantly to Rs 3,801.54 crore from Rs 2,922.79 crore in the same period last year. Profit after tax (PAT) followed this upward trend, rising to Rs 409.09 crore compared to Rs 284.44 crore in the previous year. Standalone operations showed similar momentum, with revenue hitting Rs 3,504.63 crore and PAT reaching Rs 449.90 crore.
Why this matters
The company’s board has approved a substantial capital expenditure of over Rs 390 crore. This investment is spread across four key projects designed to remove production bottlenecks. Major allocations include Rs 300 crore for OIP bushing and instrument transformer capacity and Rs 68 crore for power transformer capacity. These moves reflect management's strategy to capture sustained demand in the power and industrial sectors.
Governance Changes
Effective October 23, 2026, the company has elevated Mr. Rajat Shah (Vice President - Services) and Mr. Rushikesh Kulkarni (Chief Growth & Innovation Officer - Industrial Business) to the position of Senior Management Personnel.
Risks to watch
Investors should closely track the execution timelines of these capital projects, which range from 6 to 36 months. While the current utilization rates of 85% to 94% across divisions justify the expansion, timely commissioning is essential to avoid cost overruns and ensure the projected revenue growth materializes as planned.
What to track next
Watch for quarterly updates on the construction progress of the T3 Power Transformer division and the S1 Unit at Ambad. Sustained high capacity utilization and order intake momentum will be the primary drivers for future performance.