CG Power Q4 FY26: Buy calls with targets up to ₹955

Why CG Power is in focus after Q4 FY26

CG Power and Industrial Solutions Ltd reported a stronger March-quarter performance that kept brokerages constructive on the stock. The company posted a 32% year-on-year rise in consolidated net profit for Q4 FY26, citing higher revenues. After the results, Emkay and Nuvama Research reiterated BUY calls and raised or maintained optimistic target prices, while Motilal Oswal also kept its BUY view with a rolled-forward valuation.

The focus is on three data points that brokerages highlighted: a sharp pick-up in the Power Systems segment, improvement in margins, and continued momentum in order inflows and backlog. At the same time, Industrial Systems remained softer, with the railways business flagged as a challenge area.

Consolidated Q4 FY26 numbers: profit rises to ₹362 crore

For the March quarter, CG Power reported consolidated net profit of ₹362 crore, up from ₹274 crore a year ago. Consolidated sales increased to ₹3,442 crore from ₹2,753 crore in the same period last year.

Emkay’s result note described Q4 FY26 as stronger-than-expected, and cited year-on-year growth of 25% each in revenue and PAT, along with a 29% increase in EBITDA. In Emkay’s numbers, quarterly revenue was ₹3,440 crore, EBITDA ₹470 crore, and PAT ₹360 crore.

FY26 performance: profit at ₹1,197 crore on higher sales

For FY26, CG Power said consolidated net profit increased to ₹1,197 crore from ₹973 crore in the previous year. Consolidated sales rose to ₹12,418 crore from ₹9,909 crore.

The company also noted that consolidated results include operating subsidiaries in Sweden, Germany, and the Netherlands (Drives and Automation Europe), along with Indian subsidiaries CG Adhesive Products Ltd, CG Semi Pvt Ltd, G.G. Tronics India Pvt Ltd, Axiro Semiconductor Group, and other non-operating subsidiaries.

Order inflows and backlog: visibility remains a key talking point

CG Power reported Q4 order intake of ₹5,335 crore, up 39% year-on-year. Unexecuted order backlog as of March 31, 2026 stood at ₹17,107 crore, up 61% year-on-year, as per the company’s update.

For the full year, order intake for FY26 was ₹19,616 crore, up 33% versus the prior fiscal.

A separate brokerage note cited order backlog of ₹15,719 crore, up 59% year-on-year, indicating that market notes may refer to different scopes or classifications while still pointing to a strong pipeline.

Segment trends: Power Systems strength, Industrial Systems muted

Brokerages largely attributed the quarter’s strength to execution in Power Systems. Emkay highlighted Power Systems growth of 50% year-on-year, calling out robust underlying execution.

Industrial Systems was described as muted, with Emkay flagging challenges in the railway business. Nuvama also referred to railways as a support lever through GG Tronics’ order book, but did not describe the segment as the primary growth driver compared with transformers, GIS, exports, and semiconductors.

Margins and pricing: EBITDA margin improves, motors see price hikes

On the consolidated base, Emkay noted an EBITDA margin improvement of 40 bps year-on-year to 13.6%, led mainly by higher profitability in Power Systems.

The company also implemented a 17% price hike in the Motor business over the last four quarters, as mentioned by Emkay, in the context of rising input costs.

Emkay’s view: target raised to ₹875 on FY28E valuation

Emkay maintained a BUY rating and raised its target price by 13% to ₹875 from ₹775. The brokerage said it values CG Power at 55x FY28E earnings.

It also pointed to Q4 order inflows of ₹5,340 crore and an order backlog of ₹17,100 crore (rounded from figures presented in the note), while highlighting exports as a large opportunity alongside domestic demand. Emkay referenced the global energy transition drive and data-centre capex as supporting factors for export-led growth.

Nuvama’s view: bull-case target at ₹955, EPS CAGR near 39%

Nuvama Research retained a BUY rating, arguing that accelerated transformer capex should drive strong growth in the higher-power segment. It also listed additional growth levers through GIS in FY27, exports, and semiconductors from FY29 onward.

Nuvama cited railways support from GG Tronics’ order book of ₹1,000 crore. It raised its FY28E EPS estimate by 11%, projected FY28E operating profit margins at 14.8%, and estimated an EPS CAGR of nearly 39% over FY26-28E.

Based on a 60x multiple of FY28E EPS, Nuvama revised its bull-case target price to ₹955, including OSAT contributions. It also noted that at the then-current market price, the stock was trading at 79x FY27E EPS and 56x FY28E EPS.

Motilal Oswal’s view: BUY maintained with ₹940 target

Motilal Oswal said CG Power’s FY26 result was broadly in line on revenue and EBITDA, while earnings outperformance was led by higher other income and a lower-than-expected tax rate.

The brokerage reiterated a BUY rating with a target price of ₹940, rolling forward its SoTP-based valuation to June 2028. Motilal Oswal also stated the stock was trading at 81.3x/60.7x P/E on FY27E/FY28E EPS.

Stock moves and capacity expansion context

A separate market update said CG Power shares hit a record high of ₹864.65 after rising 4% in intraday trade, surpassing the earlier high of ₹846.90 seen on April 24, 2026. It also said the stock had bounced back 65% from its 52-week low of ₹525.50 touched on January 27, 2026.

India Ratings and Research (Ind-Ra) said CG Power is positioned to benefit from strong demand for transformers and switchgear, driven by investments in renewable energy, data centres, and thermal power. Ind-Ra also cited a power transformer capacity expansion to 50,000 MVA from 17,000 MVA, and said the company is working to increase it to 65,000 MVA in the near term.

Key numbers and brokerage targets at a glance

What investors are tracking next

The brokerage thesis across reports clusters around three themes: execution and margin trajectory in Power Systems, sustainability of order inflows and backlog, and the timeline for newer growth drivers such as exports, GIS, and semiconductors.

At the same time, multiple notes flagged Industrial Systems as relatively softer, with railways described as challenging, making segment mix and margin progression key monitorables in subsequent quarters.

Conclusion

CG Power’s Q4 FY26 result showed higher profit, higher sales, and continued strength in order inflows, keeping major brokerages positive on the stock. The latest BUY targets in the provided notes range from ₹875 to ₹955, with valuation support tied to FY28E earnings and segment capacity expansion plans that rating agencies and brokerages have highlighted.