CG Power shares jump 8% post Q3; brokerages cautiously optimistic

CG Power and Industrial Solutions shares jumped 8.1 per cent in trade, logging an intra-day high at ₹574.65 per share on BSE. The buying on the counter came after the company posted its December quarter (Q3FY26) results on Tuesday, during market hours.

 

At 11:46 AM, CG Power’s share price was trading 7.24 per cent higher at ₹569.85 per share on BSE. In comparison, the BSE Sensex was up 0.52 per cent at 82,282.76.

CG Power and Industrial Solutions Q3 results highlights:

In Q3, the consolidated net profit came in at ₹284.83 crore, as compared to ₹240.53 crore a year ago, up 18 per cent. Its revenue from operations stood at ₹3,175.35 crore, as compared to ₹2,515.68 crore year-on-year (Y-o-Y). Check detailed results here

Brokerages’ view on CG Power and Industrial Solutions

Nomura | Buy | Target cut to ₹820 from ₹880

Nomura said CG Power’s Q3FY26 ordering stayed broadly in line, but earnings missed estimates, prompting it to cut earnings per share (EPS) by 7–9 per cent for FY26F–FY28F due to commodity headwinds and front-loaded costs (including higher semiconductor losses). 

 

While transformer capacity is being ramped (to 65,000 MVA shortly and 85,000 MVA potentially ahead of schedule), Nomura remains cautious on near-term industrial systems margin recovery given sharp copper inflation and softer demand, cuts Earnings before interest, tax, depreciation and amortisation (Ebitda) estimates by 9–10 per cent, but maintains Buy with a lower target price after trimming the valuation multiple to reflect commodity volatility and potential China-competition risks, while still forecasting 32 per cent EPS CAGR over FY26F–FY28F.

Emkay Global Financial Services | Upgrade to Buy from Add | Target trimmed to ₹775 from ₹850

Emkay upgraded CG Power to Buy, citing valuation comfort after the recent correction, with the stock trading at 45x/36x FY27/FY28E P/E (ex-OSAT). The brokerage said Q3FY26 results were broadly in line—a small Ebitda miss was offset by higher other income—while Power Systems and Industrial Systems both delivered strong execution backed by a healthy order backlog. 

 

Emkay noted Power Systems continues to benefit from a strong demand environment and better pricing, whereas Industrial Systems profitability was pressured by lower price realisations, an unfavourable railways mix, and higher input costs in motors. The company reported ₹4,400 crore in order inflows, taking the order book to ₹15,750 crore, up 62 per cent Y-o-Y, with a strong enquiry pipeline across businesses and geographies, and exports up 50 per cent in 9MFY26. 

 

Emkay added that the stock’s sharp correction was driven by concerns around Industrial Systems margins, broader market weakness, and reports on potential Chinese participation in government contracts; it has cut its SoTP-based target price, while maintaining a positive view on execution and backlog-driven visibility.

 

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