CG Power and Industrial Solutions Reports Q1 2025 Earnings

CG Power and Industrial Solutions Limited reported Q1 FY25 earnings with sales of INR 28,780.5 million, up from INR 22,275.2 million in the previous year. Revenue increased to INR 29,063 million from INR 22,606.7 million. Net income rose to INR 2,692.3 million from INR 2,411.4 million, and basic and diluted earnings per share from continuing operations were INR 1.76, up from INR 1.58.

CG Power and Industrial Solutions Limited reported robust earnings for the first quarter of FY25, with significant improvements in key financial metrics. The company's sales grew to ₹28,780.5 million, up from ₹22,275.2 million in the previous year, marking a 29.2% increase. Revenue also expanded to ₹29,063 million from ₹22,606.7 million, while net income rose to ₹2,692.3 million from ₹2,411.4 million. Basic and diluted earnings per share from continuing operations increased to ₹1.76 from ₹1.58.

The company's revenue growth was driven by strong performance across its Power Systems and Industrial Systems segments. The Power Systems segment recorded revenue of ₹1,070.14 crore in Q1 FY25, up from ₹750.30 crore in Q1 FY24, while the Industrial Systems segment saw revenue grow to ₹1,691.54 crore from ₹1,472.48 crore over the same period. The semiconductors segment also contributed to the revenue growth, with revenue rising to ₹108.49 crore from ₹5.30 crore.

CG Power's financial performance was supported by a strong balance sheet, with the company maintaining a virtually debt-free position. The company's 3-year average return on equity (ROE) stands at 45%, and it has a consistent dividend payout of 19.4%. Additionally, the company's profit before tax increased by 8.4% to ₹363.78 crore in Q1 FY25.

The stock market has been closely watching CG Power's earnings report, with the stock trading at ₹678.70 as of July 24, 2025. The stock has shown resilience, consolidating above a key support zone between ₹630 and ₹660, according to SEBI-registered analyst Rohit Mehta. A breakout above ₹700 could indicate renewed bullish momentum, while a breakdown below ₹630 may signal a deeper pullback [1].

CG Power's earnings report was well-received by retail investors on Stocktwits, with sentiment turning 'neutral' from 'bearish' a day earlier. The company's stock has shed 6.8% in value year-to-date, but the fundamentals remain strong, with the stock trading at 27.2x its book value.

References:
[1] https://stocktwits.com/news-articles/markets/equity/cg-power-and-industrial-solutions-sebi-ra-rohit-mehta-sees-breakout-above-700-if-q1-earnings-impress/ch8ymEDR5uK