CG Power shares soar 8% on ₹900-crore data centre order; details here

CG Power's stock rose as much as 8.06 per cent during the day to ₹607 per share, the biggest intraday gain since January 29, 2025

Shares of CG Power and Industrial Solutions Ltd. rose over 8 per cent on Monday on securing a ₹900 crore order from a US-based firm for supplying power transformers for a data centre project.

 

The electrical equipment maker's stock rose as much as 8.06 per cent during the day to ₹607 per share, the biggest intraday gain since January 29, 2025. The CG Power and Industrial Solutons stock pared gains to trade 6.1 per cent higher at ₹596.2 apiece, compared to a 0.63 per cent decline in Nifty 50 as of 10:23 AM. 

 

Shares of the company snapped a nine-day losing streak and currently trade at 12 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 7.5 per cent this year, compared to a 2.2 per cent decline in the benchmark Nifty 50. CG Power has a total market capitalisation of ₹94,610.17 crore.  CATCH STOCK MARKET UPDATES TODAY LIVE

CG Power lands ₹900 crore order win

CG Power and Industrial Solutions secured an order worth about ₹900 crore ($99.2 million) from Tallgrass Integrated Logistics Solutions LLC, USA, for a large-scale data centre project in the United States.

 

The order marks CG Power’s entry into the global data centre segment, one of the fastest-growing infrastructure areas, and is the largest single order won by the company to date, it said in an exchange filing. It is a direct export order for the supply of power transformers, the statement added 

 

Under the contract, CG Power will supply transformers specifically engineered to meet the high reliability, efficiency and uptime requirements of hyperscale data centres. The order is scheduled to be executed over a period of 12 to 20 months.

 

"The global shift toward cloud computing, AI, and digital infrastructure is fundamentally reshaping the power demand," Amar Kaul, global chief executive officer and managing director, CG Power, said. "We believe this win opens up a significant long-term opportunity pipeline in global data centre projects, aligned with our global growth and margin-accretive expansion strategy."  ALSO READ | How to trade ICICI Bank, HDFC Bank post Q3 results? Here's a trading guide

CG Power's recent stock rout

The stock price of CG Power fell early this year amid reports that the government is considering rolling back the 2020 procurement restrictions that limited Chinese companies from bidding for government contracts. 

 

India had tightened its foreign direct investment (FDI) norms and restricted Chinese participation in sensitive sectors, resulting in highly selective and regulated engagement, particularly in government and strategic projects.

CG Power Q2 recap

The company's consolidated revenue stood at ₹2,922.8 crore, up 21 per cent year-on-year (Y-o-Y) and 1.6 per cent quarter-on-quarter (Q-o-Q). Ebitda rose 27.8 per cent Y-o-Y but slipped 1.2 per cent sequentially to ₹376.7 crore, while profit after tax increased 29.5 per cent Y-o-Y and 6.6 per cent Q-o-Q to ₹284.4 crore.

 

However, revenue, Ebitda and profit after tax missed estimates, largely due to weaker execution across the Power Systems and Industrial Systems divisions.