CG Power's margin rebounds, but stays below the Industrials peer median
Revenue grew faster than expenses sequentially, while other income contributed 15.71% of pre-tax profit.
Filed 16 May 2026, 01:37 IST · after market close · CG Power & Industrial Solutions Ltd (CGPOWER)
Key takeaways
- Consolidated revenue grew 8.39% QoQ while expenses rose 7.10%, lifting operating margin by 1.04 percentage points to 13.55%.
- Net profit increased 28.02% QoQ to Rs 363.46 cr, helped by other income equal to 15.71% of pre-tax profit.
- CG Power's 13.55% operating margin was 2.11 percentage points below the 15.66% median for 71 reported Industrials peers.
Price around the results
Q4 revenue momentum lifted operating profit
Consolidated revenue rose 8.39% QoQ, and operating profit grew faster at 17.41% to Rs 466.49 cr. The improvement reflects expenses growing 7.10%, slower than revenue, which widened operating margin by 1.04 percentage points. Net profit rose 28.02% to Rs 363.46 cr.
Other income was material to pre-tax profit
Other income increased 88.69% QoQ to Rs 77.06 cr and accounted for 15.71% of pre-tax profit. That makes the quarter's profit quality less dependent on operating earnings than the headline net-profit growth suggests. The tax rate also rose 0.22 percentage points, so the profit increase was not aided by a lower tax rate.
Margin recovered after two sequential declines
Operating margin had fallen from 13.25% in Q1FY26 to 12.89% in Q2FY26 and 12.51% in Q3FY26 before recovering to 13.55% in Q4FY26. The recovery breaks that declining sequence but leaves the margin below the 15.66% median of 71 Industrials companies that have reported. CG Power's margin was 2.11 percentage points below that peer median.
The measured stock reaction was ordinary at first
The stock gained 0.24% on the event day and 2.44% over five sessions, while its relative return on day zero was -1.00%. Across eight recent results reactions, the stock rose five times and fell three times, with a median absolute move of 3.61%, making the initial response smaller than its typical move. The move extended to 13.05% over 15 sessions and 15.43% over 30 sessions.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹3,442 cr | ₹3,175 cr | +8.39% |
| Other income | ₹77 cr | ₹41 cr | +88.69% |
| Expenses | ₹2,975 cr | ₹2,778 cr | +7.10% |
| Operating profit | ₹466 cr | ₹397 cr | +17.41% |
| Operating margin (%) | 13.55% | 12.51% | — |
| Interest | ₹4 cr | ₹4 cr | +7.10% |
| Depreciation | ₹49 cr | ₹51 cr | -2.57% |
| Profit before tax | ₹490 cr | ₹384 cr | +27.72% |
| Tax | ₹129 cr | ₹100 cr | +28.82% |
| Net profit | ₹363 cr | ₹284 cr | +28.02% |
| EPS (₹) | ₹2.32 | ₹1.81 | +28.18% |
Operating margin of 13.55% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.24% | -1.00% |
| Next session | +3.89% | — |
| 5 sessions | +2.44% | +5.02% |
| 15 sessions | +13.05% | — |
| 30 sessions | +15.43% | — |
Volume on the results session was 2.56× its 20-day average.
What to watch
- Whether consolidated operating margin holds above 13.55% after the Q4FY26 recovery.
- Whether other income remains below its Q4FY26 share of 15.71% of pre-tax profit.
- Whether revenue growth continues to exceed the 7.10% QoQ expense-growth pace.