CG Power and Industrial Solutions share price fell nearly 2% in Monday’s trading session after its subsidiary G.G. Tronics India announced an order cancellation.
The stock opened at ₹706 in the early morning session on November 24, as compared to previous close of ₹710.20 apiece. However, the stock touched an intraday high of ₹698.75.
What’s behind the plunge?
CG Power and Industrial Solutions informed in an exchange filing that an order worth between ₹500 crore to ₹600 crore bagged in November 2024 to its subsidiary, G.G. Tronics India, by Chittaranjan Locomotive Works for supplying Loco Kavach systems under the Developmental Category has now been cancelled.
The delivery period was 12 months subject to completion of product development, Independent Safety Assessment (ISA), RDSO approval, and full compliance with Version 4.0 specifications.
“The ISA and RDSO approval activities are now in their final stages. Due to these approval timelines, the supply could not be initiated within the stipulated delivery period and order stands cancelled,” the company said in the filing.
However, it further informed that the GGT will continue to remain qualified for upcoming tenders under the Developmental Category.
“With approvals expected in the coming months, the company will also be eligible to participate in bulk procurement, offering the enhanced capabilities of the Universal Braking Algorithm along with full Version 4.0,” it added.
G. G. Tronics India Private Limited (GGT), headquartered in Bengaluru is a subsidiary of CG, and specializes in designing, manufacturing, supplying, and installing Electronic Safety Embedded Signalling Systems for the Railway Transportation segment.
CG Power and Industrial Solutions Q2 results 2025
CG Power and Industrial Solutions reported a mixed numbers during the September quarter FY26. The company reported a net profit of ₹286.7 crore, marking a year-on-year increase of over 30%. Quarterly revenue rose 21% from the same period last year to ₹2,922.8 crore.
EBITDA also improved for the September quarter, climbing 28% YoY to ₹377 crore.
In an earlier business update, the company posted a strong order inflows, with the order backlog reaching ₹13,568 crore, providing healthy visibility for upcoming quarters.
The Industrial Systems division saw a 2% YoY decline in sales, largely due to deferred railway projects. Margins contracted because of reduced operating leverage, higher commodity costs that couldn’t be fully passed through, and delays in order execution.
Conversely, the Power Systems division recorded a 48% YoY jump in sales to ₹1,254 crore, supported by improved pricing and stronger operating leverage, which contributed to margin expansion.