Synopsis: The shares of this power company are in focus today after the company announced that the order that they had received in November 2024 stands cancelled due to a certain issue pertaining to delivery.
This company, which is a global enterprise providing end-to-end solutions to utilities, industries, and consumers for the management and application of efficient and sustainable electrical energy, had its shares in the limelight today following the company’s announcement that the order received earlier had been cancelled.
With the market cap of Rs 1,09,131 crore, the shares of CG Power & Industrial Solutions Ltd fell about 3 percent and made a low of Rs 689.90 from its previous day’s closing price of Rs 709.95. The shares are trading at a PE of 102, whereas its industry PE is 47.5, and have given a return of 1,580% over the last 5 years.
About the order cancellation.
G.G. Tronics, a subsidiary of CG Power, announced that its order from Chittaranjan Locomotive Works for Loco Kavach systems has been cancelled. The company states that the product is nearly ready, and all testing and safety checks are in their final stages. However, the approval process from ISA and RDSO took longer than expected, and because the order required everything to be completed within 12 months, the supply window expired before deliveries could begin.
Even so, the update carries a hopeful tone, as GGT remains fully qualified for future tenders under the developmental category, and with approvals expected soon, the company is gearing up to participate in larger procurement rounds. Its upgraded Version 4.0-compliant systems and progress on the Uniform Braking Algorithm position it strongly for upcoming opportunities in India’s railway safety ecosystem.
Financials and others
The revenue from operations for the company is Rs 2,923 crore in Q2 FY26 versus Rs 2,413 crore in Q2 FY25, which is an increase of about 21 percent on a YoY basis. Similarly, there has been an increase in net profit of about 29 per cent when we compare the Q2 FY25 profit of Rs 220 crore with the Q2 FY26 profit of Rs 284 crore.
CG Power and Industrial Solutions Limited, based in Mumbai, is a major engineering powerhouse with a strong presence in the electrical engineering sector. The company is known for its wide-ranging portfolio that includes advanced products, systems, and services designed for power generation, industrial operations, and various infrastructure needs. Its offerings support multiple industries both within India and internationally, reinforcing its reputation as a trusted and versatile global engineering player.
CG Power is gearing up for a major expansion with plans to build a brand-new switchgear manufacturing plant in Western India. This new facility will effectively double the company’s current production capacity, allowing it to cater to the full range of MV and EHV switchgear, substation automation systems and power electronics.
With a sizeable investment of Rs 748.20 crore, the plant will span 35 acres and include a 72,000 sq. m built-up area. Expected to be completed in 33 months, this project is designed to ease capacity pressures, support growing domestic and export demand and strengthen CG Power’s position in automation and power electronics. It’s a forward-looking move aimed at long-term growth and value creation.
Written by Leon Mendonca.
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