Market Performance: A Sudden Pause in Momentum
The week began on a quieter note for the Indian stock market, and CG Power and Industrial Solutions shares were among the first to reflect that early shift in sentiment.
The CG Power share price slipped close to 2% during Monday’s session after the company reported a key development from one of its subsidiaries.
The stock opened at ₹706 compared to the previous close of ₹710.20, before touching an intraday low near ₹698.75.
For traders tracking the CG Power share price today, this dip came as the first reaction to an unexpected order update.
The Main News: A Major Order Gets Cancelled
The sentiment shifted after CG Power and Industrial Solutions announced that its subsidiary, G.G. Tronics India, had an important order cancelled.
The order, originally secured in November 2024, was valued between ₹500 crore and ₹600 crore.
It was placed by Chittaranjan Locomotive Works for the supply of Loco Kavach systems under the Developmental Category.
The contract had a 12-month delivery timeline, dependent on:
- Completion of product development
- Independent Safety Assessment (ISA)
- RDSO approval
- Compliance with Version 4.0 specifications
The company stated that ISA and RDSO approvals are now in the final phase.
But because the approvals didn’t align with the stipulated delivery period, the order now stands cancelled.
The development did not alter GGT’s qualification status. The company remains eligible for upcoming tenders under the same category.
With approvals expected soon, the subsidiary will also qualify for bulk procurement, equipped with enhanced capabilities like the Universal Braking Algorithm and full Version 4.0 compliance.
G.G. Tronics India, headquartered in Bengaluru, works on designing, manufacturing, supplying, and installing Electronic Safety Embedded Signalling Systems for the railway transportation segment.
CG Power and Industrial Solutions Q2 Results 2025: Mixed Momentum
Even as this order update took centre stage, CG Power and Industrial Solutions' Q2 results for FY26 offered a broader context for investors tracking the stock market today.
The company reported a mix of strong growth areas alongside selective pressures across divisions.
Q2 Financial Snapshot
- Revenue: ₹2,922.8 crore, up 21% YoY
- EBITDA: ₹377 crore, up 28% YoY
- Net Profit: ₹286.7 crore, rising 30%+ YoY
Earlier business updates had highlighted a strong order pipeline, with the total backlog reaching ₹13,568 crore, adding visibility for the coming quarters.
Division-Level Performance
Industrial Systems Division
- Sales dipped 2% YoY
- Impact led by deferred railway projects
- Margins saw pressure due to lower operating leverage, higher commodity costs, and delayed executions.
Power Systems Division
- Sales surged 48% YoY to ₹1,254 crore.
- Improved pricing supported margins
- Strong operating leverage contributed to expansion.
Company Overview: A Growing Power and Industrial Player
CG Power and Industrial Solutions continues to operate across two major segments — Industrial Systems and Power Systems — with the railway electronics business supported by its Bengaluru-based subsidiary GGT.
The company remains active in developing advanced signalling systems and electrical solutions used across industrial and infrastructure networks.
Summary
The drop in CG Power's share price today was largely driven by the cancellation of a high-value order awarded to its subsidiary.
While the approval delays caused the contract lapse, the company remains qualified for future tenders and bulk procurement once the final approvals are cleared.
At the same time, CG Power and Industrial Solutions Q2 results 2025 delivered solid YoY growth across revenue, EBITDA, and profit, backed by a healthy order backlog and strong performance in the Power Systems division.
This mix of short-term news flow and broader operational momentum continues to keep CG Power and Industrial Solutions shares in focus within the Indian stock market.
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