CG Power and Industrial Solutions has reported a suspected cyber incident impacting its IT systems, while confirming that core manufacturing operations remain steady. The company has engaged cybersecurity experts and notified CERT-In. This development coincides with the stock trading near 52-week lows following first-quarter results that missed market expectations for revenue and profit margins.
CG Power and Industrial Solutions Ltd announced on Tuesday that it has detected a suspected cyber incident affecting its information technology systems. In a move to assure shareholders and clients, the company clarified that the breach has not compromised its core manufacturing processes or day-to-day business operations.
To address the issue, the firm has engaged external cybersecurity experts to conduct a forensic investigation and implement necessary security measures. In accordance with standard regulatory protocols, the company has also formally notified the Indian Computer Emergency Response Team (CERT-In) about the incident.
This development comes at a challenging time for the stock, which touched a 52-week low of ₹891 on August 18, 2026, before closing at approximately ₹894. The negative sentiment follows the company’s recent first-quarter financial report, which saw mixed reactions from the market. While CG Power posted a consolidated net profit of ₹313 crore for the quarter ending June—a 16.26% increase compared to the same period last year—the figures did not meet the expectations of many market analysts.
Revenue from operations reached ₹3,280.8 crore, reflecting a 14% year-on-year growth, but this also fell short of forecasts. Additionally, the company's EBITDA, or operating profit, rose by only 4% to ₹397 crore, with margins tightening to 12%. These margin pressures have been a point of concern for investors, who will now monitor whether the current cyber incident leads to additional remediation costs or potential operational delays that could further impact profitability.
Expansion Plans in Focus
Despite the recent IT security concerns and margin pressure, the company is moving ahead with its growth strategy. The board has approved a brownfield expansion project at its Nashik facility to boost the production of EHV GIS (Extra High Voltage Gas Insulated Switchgear).
This project is estimated to cost ₹35.2 crore and aims to double the manufacturing capacity within four to six months. The company plans to fund this expansion through internal accruals or equity. Investors will likely track the progress of this expansion alongside the remediation of the cyber event. The key monitorable for the coming weeks will be management commentary regarding the potential financial impact of the IT incident and whether the company can maintain its margin recovery path while executing its capacity expansion plans.