CG Power hits new high, up 65% from 52-wk low; Motilal Oswal retains 'Buy'

CG Power's order intake remained strong in Q4, with order backlog rising 59 per cent YoY to ₹15,719 crore, providing strong revenue visibility.

CG Power share price today: Shares of CG Power and Industrial Solutions hit a record high of ₹864.65, as they rallied 4 per cent on the BSE in Thursday’s intra-day trade amid heavy volumes. The buying was buoyed after the company reported a strong set of numbers for the January to March quarter of FY2026 (Q4FY26). 

 

The stock price of the Murugappa Group company today also surpassed its previous high of ₹846.90, touched on April 24, 2026. It has bounced back 65 per cent from its 52-week low of ₹525.50 touched on January 27, 2026.

 

The average trading volumes on the counter jumped over threefold with a combined 6.95 million equity shares changing hands on the NSE and BSE.

 

 

CG Power and Industrial Solutions Q4 results

 

The company’s standalone revenue was up 22 per cent year-on-year (YoY) to ₹3,129 crore, and Ebitda grew by 41 per cent Y-o-Y to ₹573 crore, while margin expanded 240 bps at 18.3 per cent. Its profit after tax (PAT) increased 49 per cent Y-o-Y to ₹412 crore.

 

Order flow remained strong during the quarter with several key wins, taking the order backlog up 59 per cent Y-o-Y to ₹15,719 crore and offering strong revenue visibility for FY27.

 

Growth was driven by robust performance in the Power Systems segment (revenue +50 per cent Y-o-Y, margin 24.5 per cent), partially offset by margin pressure in Industrial Systems. Order intake remained strong, with order backlog rising 59 per cent Y-o-Y to ₹15,719 crore, providing strong revenue visibility, ICICI Securities said in a note.

 

Motilal Oswal sees more upside in CG Power’s stock price

 

Analysts at Motilal Oswal Financial Services said that CG Power is currently trading at 81.3x/60.7x P/E on FY27E/FY28E EPS. 

 

“We roll forward our SoTP-based target price to June 2028 and reiterate our Buy rating with a target price of ₹940,” the brokerage firm said in the Q4 result update. The target implies an upside of nearly 9 per cent from the CMP.

 

Analysts said they ascribe a 58x multiple for the power systems business, which bakes in the upcoming large capacity in the power systems segment and also some discount to MNC players. It ascribes a 55x multiple to industrial systems, which is at a 10 per cent discount to ABB, and ascribes value to the Outsourced Semiconductor Assembly and Test (OSAT) business via DCF to capture the benefits that will start accruing from FY28, the brokerage firm said.

 

Analysts at Motilal Oswal expect losses from the OSAT division to begin narrowing down from FY28 as the second phase of capacity expansion would be completed by the end of CY26. They expect strong pricing power in the power systems segment, the ability to pass through raw material cost pressures in industrial systems, and the narrowing of losses from the OSAT division to result in margin improvement from FY28.  Check - TOP GAINERS NSE | TOP LOSERS NSE

 

CG Power - India Ratings and Research (Ind-Ra) rationale

 

India Ratings and Research (Ind-Ra) expects CG Power to sustain double-digit revenue growth along with steady overall margins over the medium term, supported by its diversified product mix, strong market positioning, and favourable industry tailwinds.

 

CG Power is well-positioned to benefit from strong industry tailwinds, particularly in the power systems segment, where rising investments in renewable energy, data centres, and thermal power are driving strong demand for transformers and switchgear. To capitalise on this momentum, the company has recently completed a major capacity expansion of its power transformer capacity to 50,000MVA from 17,000MVA and is working to increase it to 65,000MVA in the near term, the rating agency said in a rationale.

 

In the industrial segment, the company continues to strengthen its position through product innovations and targeted go-to-market initiatives. Despite near-term margin pressures, demand from large enterprises remains healthy, and CG Power continues to gain share in the motor business. Ind-Ra expects the medium-term growth in the industrial segment to be supported by new product developments for the railway segment, and the integration benefits from G.G. Tronics India Private Limited. 

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