CG Power Shares Soar 8% on Landmark ₹900 Crore US Order

Introduction to the Landmark Deal

Shares of CG Power and Industrial Solutions Ltd. experienced a significant rally, climbing over 8% after the company announced it had secured a landmark order valued at approximately ₹900 crore. The contract, awarded by US-based Tallgrass Integrated Logistics Solutions LLC, is for supplying power transformers to a large-scale data centre project in the United States. This development marks the largest single order in the company's history and signals its strategic entry into the rapidly expanding global data centre infrastructure segment.

Market Reaction and Stock Performance

The announcement on Monday morning had an immediate and positive impact on the company's stock. Shares surged as much as 8.06% to an intraday high of ₹607, the most substantial single-day gain recorded since January 29, 2025. The rally snapped a nine-day losing streak for the stock, which saw trading volumes swell to 12 times the 30-day average. Despite this surge, the stock has seen a decline of 7.5% year-to-date, underperforming the benchmark Nifty 50. The company currently holds a total market capitalisation of ₹94,610.17 crore.

Unpacking the ₹900 Crore Order

The contract with Tallgrass Integrated Logistics Solutions LLC is a direct export order valued at approximately ₹900 crore, or $19.2 million. Under the terms of the agreement, CG Power will design, manufacture, test, and supply high-capacity power transformers. These units are specifically engineered to meet the stringent reliability, efficiency, and uptime standards required for hyperscale data centre applications. The transformers will be manufactured at CG Power's facilities in India and delivered over a period of 12 to 20 months. The delivery terms are specified as FAS (Free Alongside Ship) Mumbai Port, in accordance with Incoterms 2020.

Strategic Significance for CG Power

Amar Kaul, the Global CEO and Managing Director of CG Power, described the order as a "strategic platform win." He emphasized that this contract validates the company's capability to deliver mission-critical, globally benchmarked technology solutions from India. The deal reinforces CG Power's position as a trusted global partner in applications where performance and reliability are non-negotiable. Kaul noted that the global shift towards cloud computing, artificial intelligence, and digital infrastructure is fundamentally reshaping power demand, and this win opens up a significant long-term opportunity pipeline for the company in global data centre projects.

Key Order Details

Recent Financial Performance

To provide context, CG Power's recent financial results for Q2 showed a healthy year-on-year growth. The company reported a consolidated revenue of ₹2,922.8 crore, an increase of 21% from the previous year. Ebitda rose by 27.8% year-on-year to ₹376.7 crore, and the profit after tax saw a 29.5% year-on-year increase, reaching ₹284.4 crore. However, these figures fell short of market estimates, primarily attributed to weaker execution in its Power Systems and Industrial Systems divisions.

Broader Industry Context

The stock had faced downward pressure earlier in the year amid reports that the Indian government was considering a rollback of the 2020 procurement restrictions. These rules had limited the participation of Chinese companies in government contracts, particularly in sensitive sectors. The potential for increased competition had created uncertainty among investors, contributing to the stock's recent decline before this order announcement provided a strong positive catalyst.

Analysis and Future Outlook

This landmark order is a significant milestone for CG Power. It not only provides a substantial boost to its order book and revenue visibility but also marks a crucial diversification into the high-growth data centre vertical. The ability to secure a large-scale direct export order from a US client underscores the company's global competitiveness and technical expertise. This entry into the data centre supply chain aligns with its strategy for global growth and margin-accretive expansion. The successful execution of this project could pave the way for further opportunities in the international market for critical infrastructure.

Conclusion

The ₹900 crore order from Tallgrass Integrated Logistics is a major positive development for CG Power and Industrial Solutions, validating its strategic direction and manufacturing capabilities. The immediate 8% surge in its share price reflects strong investor confidence in the company's growth prospects. As CG Power ventures into the global data centre market, stakeholders will be closely watching its execution capabilities. The company's board is scheduled to meet on January 27, 2026, to approve its third-quarter financial results, which will be the next key event for investors.