CG Power and Industrial Solutions Ltd delivered mixed Q1FY27 results that drove investor sentiment cautiously optimistic. The company reported consolidated net profit of ₹313 crore, representing a 16.3% year-on-year increase from ₹269.2 crore in the same period last year. Revenue from operations grew 14% to ₹3,281 crore compared to ₹2,878 crore a year earlier. However, operating margins remained weaker than expected, impacting overall investor confidence despite the strong top-line growth.
CG Power shares closed 1.23% higher at ₹877 per share on BSE with a market capitalisation of ₹1,38,125.68 crore. The stock touched an intraday high of ₹885.10 per share and an intraday low of ₹867.70 per share. The positive market response came despite the company's Q1 performance being below brokerage estimates, as noted by Motilal Oswal. The stock currently trades at 87.8x/65.8x/52.0 P/E on FY27E/FY28E/FY29E EPS.
Motilal Oswal's latest research report dated September 03, 2026 highlighted significant capacity expansion at CG Power's new transformer plant in Sehore, Madhya Pradesh. The facility features manufacturing capacity of 45,000 MVA and has been commissioned in just 13 months, demonstrating the company's ability to expand rapidly. With this greenfield capacity addition, CG Power's total transformer manufacturing capacity has increased to 120,000 MVA. Management indicated the plant has potential to further scale up capacity based on future demand-supply dynamics, positioning the company ahead of industry peers in capacity expansion.
Motilal Oswal maintained its 'Buy' rating on CG Power but revised the target price up to ₹1,020 from ₹975 in its latest report dated September 03, 2026. The brokerage expects power systems revenue to clock a CAGR of 32% over FY26-29 with the potential for further scaling as transformer capacity has more than doubled. The company's bid pipeline remained healthy across transmission and distribution, utilities, renewables, data centres, and exports with no pricing pressure despite capacity additions. The brokerage projects revenue/EBITDA/PAT CAGR of 25%/33%/28% over FY26-29E.
As reported by Motilal Oswal, the brokerage has assigned specific valuation multiples to different business segments: 58 times multiple for the power systems business (including large power transformer capacity), 55 times multiple to industrial systems, and value to the OSAT business via DCF to capture benefits starting from FY28. Key risks include a slowdown in T&D capex, an increase in commodity prices, weak motor demand, and limited OSAT experience. The company's diversified portfolio across power systems and industrial systems is expected to drive sustained growth momentum in the coming years.
