Target Price: ₹968
Current Market Price: ₹879.20
CG Power and Industrial Solutions is engaged in the development and distribution of electrical equipment, including transformers, reactors, control equipment, industrial motors, pumps, and communication systems.
In the fourth quarter of FY26, the company reported a consolidated revenue growth of 25% to ₹3,442 crore. The power systems segment experienced significant growth, with revenue increasing by 49.7% to ₹1,487 crore, driven by robust demand and disciplined execution, which led to enhanced project deliveries. Meanwhile, the industrial systems segment’s revenue rose by 2.3% to ₹1,791 crore, spurred by growth in motors and drives but partially constrained by heightened competition and a larger share of lower-margin railway orders. The company’s EBITDA climbed by 30% to ₹544 crore, as margins improved by 60 basis points to 15.8%. The profit after tax saw a 31.8% increase, reaching ₹36 crore, attributed to stronger revenue and improved operational leverage.
The power systems division continues to excel, supported by strong execution and sustained domestic and global demand for transformers and switchgear, bolstered by a robust order book that includes substantial utility and export wins. The performance of the industrial systems segment is anticipated to improve gradually, aided by momentum in the motors business, benefiting from pricing discipline, and enhanced execution within the railway sector.
As a result of this positive outlook, the rating has been upgraded from HOLD to BUY, with a revised target price of ₹968, reflecting a valuation of 72.0 times the expected adjusted EPS for FY28.
Published on May 26, 2026
