Revenue Growth and Operating Performance
Over the past six years, CG Power & Ind’s net sales have exhibited a strong upward trajectory, rising from ₹7,998 crores in March 2019 to nearly ₹9,909 crores by March 2025. Despite a dip in fiscal 2021 to ₹2,964 crores, likely reflecting external challenges, the company rebounded sharply in subsequent years, with sales increasing by over 60% from 2021 to 2025. This recovery underscores the company’s resilience and ability to capitalise on market opportunities.
Operating profit margins have also improved markedly. The operating profit margin excluding other income rose from a modest 3.31% in 2019 to a healthy 13.17% in 2025, reflecting better cost management and operational efficiencies. The operating profit (PBDIT) excluding other income surged from a low of ₹117 crores in 2021 to ₹1,305 crores in 2025, signalling a strong turnaround from earlier losses and subdued profitability.
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Profitability and Earnings Trends
The company’s profit before tax (PBT) and profit after tax (PAT) have shown a remarkable recovery from significant losses in 2019 and 2020. PBT improved from a negative ₹459 crores in 2019 to a positive ₹1,348 crores in 2025. Similarly, PAT swung from a loss of ₹492 crores in 2019 and a steep loss of ₹2,160 crores in 2020 to a profit of ₹973 crores in 2025. This turnaround is further reflected in earnings per share (EPS), which rose from negative ₹8.09 in 2019 to a positive ₹6.37 in 2025.
Margins have also strengthened considerably. The PAT margin improved from a negative 6.15% in 2019 to a positive 9.82% in 2025, indicating enhanced profitability and better cost control. The gross profit margin, although fluctuating, remained positive in recent years, reaching 14.73% in 2025 compared to negative margins in earlier years.
Balance Sheet and Financial Position
CG Power & Ind’s balance sheet has strengthened significantly. Shareholders’ funds increased from a negative ₹84 crores in 2021 to a robust ₹3,844 crores in 2025, reflecting improved equity and reserves. The company’s total liabilities rose in line with business growth but remained manageable relative to assets, which expanded from ₹3,601 crores in 2022 to ₹7,413 crores in 2025.
Notably, the company has drastically reduced its debt levels, with total debt falling from ₹1,464 crores in 2021 to a negligible ₹0.34 crores in 2025. This deleveraging enhances financial stability and reduces interest burden, which is evident in the decline of interest expenses from ₹197 crores in 2021 to just ₹7 crores in 2025.
Cash Flow and Liquidity
Cash flow from operating activities has improved substantially, turning positive after years of strain. The company generated ₹944 crores in operating cash flow in 2025, compared to a negative ₹242 crores in 2021. This improvement supports ongoing investments and debt reduction. Cash and bank balances have also increased, reaching ₹1,259 crores in 2025, providing ample liquidity for operational needs and strategic initiatives.
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Summary of Historical Performance
In summary, CG Power & Ind has experienced a significant financial transformation over the last six years. After enduring losses and operational challenges in 2019 and 2020, the company has steadily improved its revenue base, profitability, and financial health. The consistent growth in net sales, coupled with expanding profit margins and a strengthened balance sheet, positions the company favourably for future growth. The reduction in debt and improved cash flows further enhance its financial resilience.
Investors and market analysts will note the company’s ability to recover from adverse conditions and deliver sustained improvements in key financial metrics. While challenges remain in maintaining margin stability and managing working capital, the overall trajectory suggests a positive outlook for CG Power & Ind’s operational and financial performance.
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