CG Power lifts margin as revenue growth outpaces costs
Consolidated operating margin rose 1.30 percentage points YoY, while other income contributed 14.61% of profit before tax.
Filed 23 Oct 2026, 14:26 IST · CG Power & Industrial Solutions Ltd (CGPOWER)
Key takeaways
- Consolidated revenue grew 30.07% year on year, while expenses grew 28.12%, lifting operating margin by 1.30 percentage points.
- Net profit rose 43.82% to Rs 409.09 cr, but other income contributed 14.61% of pre-tax profit.
- Operating margin of 14.19% was 3.16 percentage points above the 11.03% median for 25 reported Industrials peers.
Price around the results
Revenue growth translated into faster profit growth
CG Power's consolidated revenue grew 30.07% year on year to Rs 3,801.54 cr, while operating profit grew 43.23% to Rs 539.58 cr. Expenses increased 28.12%, slower than revenue, which drove the 1.30-percentage-point expansion in operating margin. Net profit growth was faster at 43.82%, with EPS rising 43.96% to Rs 2.62.
Margin improved, but other income remains material
Operating margin reached 14.19%, helped by revenue growth running ahead of expense growth. The tax rate was nearly stable, increasing 0.15 percentage points to 26.85%, so it did not materially flatter net profit growth. Other income accounted for 14.61% of pre-tax profit, making reported earnings partly dependent on non-operating income.
Margin is above peers and higher than the recent trough
CG Power's 14.19% operating margin was 3.16 percentage points above the 11.03% median among 25 Industrials companies that had reported the quarter. The margin has risen from 12.51% in Q3FY26 to 13.55% in Q4FY26 and the current 14.19%, reversing the decline seen through Q3FY26. The comparison is year on year because the available quarter-on-quarter block is not reported.
Past result-day moves have been mixed
Across the last eight results reactions, the stock rose five times and fell three times, with a median absolute move of 3.61%. The recorded moves ranged from -3.36% to +8.84%, so the stock has not shown a consistent direction after results. No current-market reaction is included here.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | YoY |
|---|---|---|
| Revenue | ₹3,802 cr | +30.07% |
| Other income | ₹82 cr | +23.62% |
| Expenses | ₹3,262 cr | +28.12% |
| Operating profit | ₹540 cr | +43.23% |
| Operating margin (%) | 14.19% | — |
| Interest | ₹4 cr | +61.34% |
| Depreciation | ₹58 cr | +10.91% |
| Profit before tax | ₹559 cr | +44.10% |
| Tax | ₹150 cr | +44.87% |
| Net profit | ₹409 cr | +43.82% |
| EPS (₹) | ₹2.62 | +43.96% |
Operating margin of 14.19% compares with a Industrials sector median of 11.03% across 25 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.45% | +1.77% |
Volume on the results session was 1.39× its 20-day average.
What to watch
- Whether consolidated operating margin holds above 14.19%.
- Whether expenses continue to grow more slowly than revenue's 30.07% year-on-year growth.
- Whether other income remains a material contributor relative to the 14.61% share of pre-tax profit.