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CG Power & Industrial Solutions Ltd
(CGPOWER)
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Rating:70Outperform
Price Target:
₹898.00
▲(1.07% Upside)
Action:Upgraded
Date:10/23/26
The score is driven primarily by strong financial health (especially the strengthened, low-debt balance sheet) and a very upbeat earnings call with strong order intake/backlog and improving margins. Offsetting these positives are weak near-term technical momentum (price below key moving averages with negative MACD) and an expensive valuation (very high P/E with minimal dividend support), plus cash flow inconsistency with latest-year free cash flow turning slightly negative.
Positive Factors
Backlog visibility
The sharp increase in orders and unexecuted backlog provides multi-quarter revenue visibility and supports capacity planning. This reduces reliance on immediate order wins, improves operating leverage potential, and gives the business a stronger foundation for sustained growth.
Negative Factors
Weak cash conversion
Negative latest-year free cash flow and weaker conversion of earnings into cash indicate that reported profitability is not currently translating fully into internally generated funds. Continued volatility could constrain self-funded investment and increase dependence on working-capital management.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog visibility
The sharp increase in orders and unexecuted backlog provides multi-quarter revenue visibility and supports capacity planning. This reduces reliance on immediate order wins, improves operating leverage potential, and gives the business a stronger foundation for sustained growth.
Read all positive factors
CG Power & Industrial Solutions Ltd (CGPOWER) vs. iShares MSCI India ETF (INDA)
Market Cap
₹1.27T
Dividend Yield0.16%
Average Volume (3M)212.41K
Price to Earnings (P/E)92.0
Beta (1Y)1.26
Revenue Growth23.76%
EPS Growth25.93%
CountryIN
Employees3,113
SectorGeneral
Sector StrengthN/A
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)8.74
Shares Outstanding1,575,468,300
10 Day Avg. Volume295,051
30 Day Avg. Volume212,413
Financial Highlights & Ratios
PEG Ratio4.04
Price to Book (P/B)12.84
Price to Sales (P/S)8.24
P/FCF Ratio-2.36K
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)10.19
Revenue Forecast (FY)₹155.50B
CG Power & Industrial Solutions Ltd Business Overview & Revenue Model
Company Description
Operating across India and international markets, CG Power and Industrial Solutions Limited offers extensive solutions for electrical energy management and application to a varied client base, including utilities, industrial sectors, and end consu...
How the Company Makes Money
CGPOWER primarily makes money by designing, manufacturing, and selling electrical equipment and solutions to utilities and industrial customers. Its key revenue streams typically include (1) sale of power systems equipment such as transformers and...
CG Power & Industrial Solutions Ltd Earnings Call Summary
Earnings Call Date:Oct 23, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Feb 15, 2027
Earnings Call Sentiment Positive
The call was strongly positive, supported by record quarterly revenue, robust order intake, significant power systems growth, margin expansion, a strengthened backlog and multiple capacity and technology investments. The main challenges were the 91-basis-point consolidated margin impact from subsidiary talent investments, a potentially flat or declining railway business, pending Kavach approval, extended semiconductor qualification timelines and ongoing U.S. utility qualifications. Highlights significantly outweighed the lowlights.Positive Updates
Record Quarterly Revenue and Margin Expansion
Standalone Q2 sales reached INR 3,505 crores, up 32% year-over-year, while profit before tax increased 47% year-over-year to INR 602 crores. PBT margin improved to 17.2% from 15.4%, representing a 180-basis-point year-over-year expansion, primarily driven by the power systems segment and supported by motors. Annualized return on capital employed was 27%.
Negative Updates
Consolidated Margin Impact from Subsidiary Talent Investments
Consolidated margin expansion was partially offset by continued talent investments in subsidiaries including CG Semi and Axiro. Management quantified the impact at approximately INR 35 crores, or 91 basis points.
Read all updates
Q2-2027 Updates
Positive
Negative
Record Quarterly Revenue and Margin Expansion
Standalone Q2 sales reached INR 3,505 crores, up 32% year-over-year, while profit before tax increased 47% year-over-year to INR 602 crores. PBT margin improved to 17.2% from 15.4%, representing a 180-basis-point year-over-year expansion, primarily driven by the power systems segment and supported by motors. Annualized return on capital employed was 27%.
Read all positive updates
Company Guidance
Management said core-business CapEx may touch INR 1,000 crore for FY 2027, excluding OSAT, with FY 2028 “around INR 700 crore-INR 800 crore”; S1 production is tentatively expected to commence within 30-36 months, S3 capacity addition within six to nine months, and T3 capacity expansion within 12-15 months. Kavach production should commence “Definitely in the current quarter,” while the G2 facility is targeting qualification to commence middle of next year and commercial production “somewhere towards the end of 2028 or 2029.” Industrial margins are improving “at least 50, 60 basis points every quarter,” motors has already gone to “double digits,” railway revenue may be “either flat or it might go down,” and power-system margins are expected to “either maintain or go above these margins.” Management’s aspiration is “high double-digit growth,” while it does not give forward-looking revenue guidance; a 765 kV transformer typically takes 18-24 months to deliver.CG Power & Industrial Solutions Ltd Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 136.99B | 124.18B | 98.15B | 79.56B | 68.95B | 54.04B |
| Gross Profit | 36.67B | 27.05B | 28.49B | 23.68B | 20.11B | 14.82B |
| EBITDA | 20.02B | 18.34B | 14.67B | 12.56B | 11.13B | 9.19B |
| Net Income | 13.75B | 12.06B | 9.75B | 14.27B | 9.63B | 9.13B |
Balance Sheet | ||||||
| Total Assets | 144.60B | 126.68B | 74.17B | 56.26B | 46.69B | 42.26B |
| Cash, Cash Equivalents and Short-Term Investments | 12.10B | 29.91B | 16.96B | 14.50B | 7.14B | 5.30B |
| Total Debt | 1.69B | 1.18B | 409.70M | 175.60M | 165.50M | 3.67B |
| Total Liabilities | 55.00B | 44.69B | 33.79B | 26.07B | 28.78B | 32.22B |
| Stockholders Equity | 87.39B | 79.70B | 38.44B | 30.17B | 17.91B | 10.03B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -434.30M | 5.17B | 1.63B | 8.61B | 4.11B |
| Operating Cash Flow | 0.00 | 7.34B | 9.44B | 3.97B | 9.47B | 4.85B |
| Investing Cash Flow | 0.00 | -36.01B | -5.68B | -6.62B | -206.90M | 2.27B |
| Financing Cash Flow | 0.00 | 27.58B | -1.67B | -2.46B | -6.12B | -8.00B |
CG Power & Industrial Solutions Ltd Technical Analysis
Negative
888.50
Price Trends
872.30
Negative
889.99
Negative
810.37
Positive
Market Momentum
-14.50
Positive
42.70
Neutral
63.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CGPOWER, the sentiment is Negative. The current price of 888.5 is above the 20-day moving average (MA) of 850.92, above the 50-day MA of 872.30, and above the 200-day MA of 810.37, indicating a neutral trend. The MACD of -14.50 indicates Positive momentum. The RSI at 42.70 is Neutral, neither overbought nor oversold. The STOCH value of 63.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CGPOWER.
CG Power & Industrial Solutions Ltd Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | ₹1.23T | 105.49 | ― | 0.03% | 40.17% | 123.39% | |
75 Outperform | ₹1.36T | 45.48 | ― | 0.61% | 7.92% | 66.43% | |
70 Outperform | ₹1.27T | 91.99 | ― | 0.16% | 23.76% | 25.93% | |
67 Neutral | ₹990.02B | 67.08 | ― | 0.14% | ― | ― | |
65 Neutral | ₹26.39B | 20.32 | ― | 1.50% | 26.44% | -11.83% | |
59 Neutral | ₹261.42B | 141.89 | ― | 0.50% | 9.56% | -29.50% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:CGPOWER
CG Power & Industrial Solutions Ltd
803.95
69.32
9.44%
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-12.58%
CG Power & Industrial Solutions Ltd Corporate Events
CG Power to Host Q2 FY27 Earnings Call With Senior Management
Oct 16, 2026
CG Power and Industrial Solutions Ltd, a diversified Indian electrical and industrial solutions provider, manufactures and markets motors, drives and automation systems, switchgears, consumer electrical products and railway equipment for domestic ...
CG Power Allots 18,250 Shares Under ESOP 2021, Slightly Ups Paid-Up Capital
Sep 20, 2026
CG Power Industrial Solutions Ltd has allotted 18,250 fully paid equity shares of face value Rs. 2 each to eligible employees under its Employee Stock Option Plan 2021 at an exercise price of Rs. 635.10 per share. Following this allotment, the co...
CG Power Reports Suspected Cyber Incident, Core Operations Unaffected
Aug 18, 2026
CG Power and Industrial Solutions Ltd. has reported a suspected cyber incident affecting its IT systems, but stated that its core systems and business operations remain unaffected. The company has engaged internal and external cybersecurity specia...
CG Power Posts Analyst Call Transcript to Boost Investor Transparency
Jul 30, 2026
Operating in the electrical equipment and industrial solutions industry, CG Power Industrial Solutions Ltd provides power systems and related technologies to utility, infrastructure, and industrial clients in India and abroad. The company also ma...
CG Power files monitoring report on Rs 3,000 crore QIP proceeds
Jul 24, 2026
CG Power Industrial Solutions Ltd has disclosed that CARE Ratings Ltd, acting as the monitoring agency, has submitted its report for the quarter ended 30 June 2026 on the utilisation of proceeds from the company’s Rs 3,000 crore Qualified I...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.