Why CG Power Shares Jumped Nearly 5% Today After Strong Q1 Earnings

CG Power and Industrial Solutions Ltd. shares gained nearly 5% on Friday after the company reported a strong set of Q1 FY27 financial results that highlighted steady earnings growth, healthy revenue expansion and a significant rise in its order backlog. The stock climbed to around ₹878 during intraday trading, making it one of the top gainers in the BSE Capital Goods Index as investors responded positively to the company's operational performance and long-term growth outlook. The rally also came amid broader strength in capital goods stocks, with companies like Siemens and Finolex Cables also trading higher.

The company's latest quarterly performance reinforced investor confidence in its ability to benefit from India's ongoing infrastructure, power transmission and industrial manufacturing investments. Along with reporting higher profits, CG Power announced fresh capacity expansion plans at its Nashik manufacturing facility, which is expected to significantly increase production capacity for Extra High Voltage (EHV) Gas Insulated Switchgear (GIS). A rapidly growing order book, healthy execution pipeline and continued investments in manufacturing capacity have strengthened expectations that the company can sustain its growth momentum over the coming quarters.

CG Power Share Price Rally at a Glance

Particulars	Details
Share Price Gain	Nearly 5%
Intraday High	Around ₹878
Market Trend	Top Gainer in BSE Capital Goods Index
Order Backlog	₹17,333 Crore
Net Profit Growth	15.5% YoY
Revenue Growth	14% YoY

Strong Q1 FY27 Earnings Boosted Investor Sentiment

The primary reason behind Friday's rally was CG Power's strong financial performance for the June quarter (Q1 FY27). The company reported a 15.5% year-on-year increase in consolidated net profit, which rose to ₹308.28 crore, while total income increased to ₹3,364.39 crore from ₹2,906.30 crore in the corresponding quarter last year. The steady improvement in earnings reflected healthy business execution across its power systems and industrial products businesses, supported by rising demand for electrical equipment and infrastructure projects across India.

Apart from higher profitability, investors were encouraged by the company's ability to maintain consistent revenue growth despite a competitive business environment. Strong execution of existing projects, increasing demand from the power transmission sector and continued order inflows helped drive higher sales during the quarter. The performance demonstrated that CG Power continues to benefit from the government's infrastructure spending, industrial expansion and investments in the country's power sector, all of which are creating long-term opportunities for equipment manufacturers.

CG Power Q1 FY27 Financial Performance

Particulars	Q1 FY27	Q1 FY26	YoY Growth
Net Profit	₹308.28 Crore	₹266.90 Crore	15.5%
Total Income	₹3,364.39 Crore	₹2,906.30 Crore	15.8%
Net Sales	₹3,280.80 Crore	₹2,878.10 Crore	14%
Order Backlog	₹17,333 Crore	—	45% Growth

Record Order Backlog Provides Strong Revenue Visibility

One of the biggest highlights of the quarter was the sharp increase in the company's order backlog, which surged nearly 45% year-on-year to ₹17,333 crore. A growing order book is considered an important indicator for engineering and capital goods companies because it provides visibility into future revenue and reflects sustained customer demand. The strong backlog suggests that CG Power has secured enough projects to support business growth over multiple quarters, reducing concerns about near-term revenue volatility.

The company's order inflows have been driven by rising investments in India's power transmission network, industrial automation, railway electrification and infrastructure development. As both government and private sector capital expenditure continues to increase, demand for transformers, switchgear and other electrical equipment is expected to remain healthy. Investors therefore viewed the expanding order book as a strong signal that CG Power is well positioned to benefit from India's long-term infrastructure growth cycle.

Order Book Highlights

Metric	Performance
Order Backlog	₹17,333 Crore
YoY Growth	45%
Revenue Visibility	Multi-Quarter
Growth Driver	Infrastructure & Power Projects

Capacity Expansion Strengthens Long-Term Growth Outlook

Alongside its quarterly results, CG Power also announced a fresh investment to expand manufacturing capacity at its Nashik facility. The company's Board approved an investment of ₹35.17 crore for a brownfield expansion that will double production capacity for Extra High Voltage (EHV) Gas Insulated Switchgear (GIS). This expansion is expected to help the company meet rising domestic demand while strengthening its ability to execute large infrastructure and transmission projects.

The investment reflects management's confidence in future demand across the power equipment industry. As India continues expanding its transmission network, renewable energy capacity and industrial infrastructure, demand for advanced electrical equipment is expected to increase significantly. By expanding production capacity ahead of demand, CG Power is positioning itself to capture a larger share of upcoming opportunities while improving manufacturing efficiency and reducing delivery timelines.

Capacity Expansion Details

Particulars	Details
Investment	₹35.17 Crore
Facility	Nashik
Expansion Type	Brownfield
Product	EHV GIS Equipment
Capacity Impact	Production Capacity to Double

Strong Long-Term Performance Continues

Beyond the latest quarterly results, CG Power has delivered strong financial growth over the past year. For FY26, the company reported a 23% increase in net profit to approximately ₹1,196.7 crore, while annual revenue grew 25.3% to ₹12,418 crore. These numbers reflect the company's successful transformation over the past few years and its ability to consistently improve profitability while expanding its operations across power systems and industrial equipment.

The stock has also rewarded long-term investors with strong returns. Over the past 12 months, CG Power shares have gained more than 33%, significantly outperforming the broader BSE Sensex, which declined during the same period. Continued earnings growth, increasing order inflows and expanding manufacturing capacity have helped establish CG Power as one of the stronger performers in India's capital goods sector.

Historical Stock Performance

Period	Performance
Intraday (July 31)	+5%
One-Year Return	+33.1%
FY26 Net Profit Growth	23%
FY26 Revenue Growth	25.3%

Why did CG Power shares rise nearly 5% today?

CG Power shares gained nearly 5% after the company reported strong Q1 FY27 results, including a 15.5% increase in consolidated net profit, healthy revenue growth, a 45% jump in its order backlog, and the announcement of a capacity expansion at its Nashik manufacturing facility.

What was CG Power's net profit in Q1 FY27?

The company reported a consolidated net profit of ₹308.28 crore for the quarter ended June 2026, representing a 15.5% year-on-year increase compared with the same quarter last year.

How much did CG Power's revenue grow in Q1 FY27?

CG Power reported total income of ₹3,364.39 crore, up from ₹2,906.30 crore in the year-ago quarter. Net sales also increased 14% year-on-year, reflecting strong business execution and healthy demand.

Why is the order backlog important for CG Power?

The company's order backlog increased 45% year-on-year to ₹17,333 crore, providing strong revenue visibility for the coming quarters. A larger order book indicates sustained demand and supports future earnings growth.

What capacity expansion has CG Power announced?

CG Power's Board approved a ₹35.17 crore brownfield investment at its Nashik manufacturing facility to double the production capacity of Extra High Voltage (EHV) Gas Insulated Switchgear (GIS) equipment.

How has CG Power performed over the past year?

CG Power shares have gained more than 33% over the last 12 months, significantly outperforming the broader market as investors rewarded the company for strong earnings growth, rising order inflows and continued expansion.

What sectors are driving CG Power's growth?

The company is benefiting from increasing investments in power transmission, renewable energy, industrial infrastructure, railway electrification and the broader capital expenditure cycle across India.

What should investors watch in CG Power going forward?

Investors should monitor order inflows, order execution, capacity expansion, profit margins, revenue growth, and the company's ability to sustain strong demand across its power systems and industrial equipment businesses.