# CG Power Shares Close Higher After Q1 Results; What’s Next for Investors?

> CG Power and Industrial Solutions shares ended in the green on Monday after posting a 16 percent annual jump in net profit for the fourth quarter of financial year 2026-27.

**Type:** article · **Category:** Market · **Published:** 2026-07-27 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/market/cg-power-shares-close-higher-after-q1-results-whats-next-for-investors-10852 · **Language:** English
**Tags:** CG Power, Stock Market, Q1 Results, Power Stocks, Financial News

Shares of CG Power and Industrial Solutions Ltd finished the trading session in positive territory on Monday, following the power engineering firm's announcement of a 16 percent year-on-year jump in net profit for the fourth quarter of financial year 2026-27. Backed by the Murugappa Group, the company also registered a solid 14 percent growth in net revenue for the quarter, drawing considerable attention from market participants.

## Stock Market Performance and Price Movement
The equity stock of CG Power closed 1.23 percent higher at Rs 877 per share on the BSE, bringing the company's total market capitalisation to Rs 1,38,125.68 crore. Throughout the trading hours, the power stock touched an intraday high of Rs 885.10 per share and registered an intraday low of Rs 867.70 per share. Despite the profit surge, analysts noted that the overall financial outcome came in below expectations.

According to a report by Motilal Oswal, CG Power's quarterly profit lagged behind estimates even though the power systems segment maintained robust margin performance. The company's performance during the quarter was weighed down by one-time provisions set aside for the industrial segment alongside sustained high losses originating from the semiconductor segment.

## Brokerage Insights and Financial Outlook
In its official press release, the company acknowledged that the first-quarter result fell short of projections primarily due to lower-than-expected execution in the power systems division, reduced margins in the industrial systems division, and higher-than-expected losses within the semiconductor division.

The brokerage noted that estimates were marginally trimmed by 3 to 4 percent for FY27 and FY28 to factor in the recent performance. Looking ahead, overall order inflows are projected to record an 11 percent CAGR over the FY26 to FY29E period. Projections also model a revenue, EBITDA, and PAT CAGR of 25 percent, 33 percent, and 28 percent respectively over the same timeframe, with anticipated EBITDA margins of 13.7 percent for FY27, 15.1 percent for FY28, and 15.9 percent for FY29E.

## Bid Pipeline and Market Demand
The brokerage highlighted that the bidding pipeline remains exceptionally healthy across transmission and distribution, utilities, renewables, data centres, and export markets. Furthermore, this strong demand persists without any notable pricing pressure despite ongoing capacity additions across the broader industry.

## Analyst Rating and Target Price Adjustments
Motilal Oswal maintained a 'Buy' rating on the stock while revising the target price down to Rs 975 per share. Analysts pointed out that the stock trades at 87.8x, 65.8x, and 52.0x P/E based on estimated earnings per share for FY27E, FY28E, and FY29E respectively, reiterating the buy recommendation with the revised target.

During the quarter ended June, CG Power and Industrial Solutions Ltd posted a consolidated net profit increase of 16.3 percent year-on-year to reach Rs 313 crore, compared to Rs 269.2 crore recorded in the corresponding period of the previous year. Meanwhile, revenue from operations climbed 14 percent to reach Rs 3,281 crore, up from Rs 2,878 crore a year earlier, though cautious sentiment lingered due to operating margin dynamics.

## What this means for you
**Across India:** Investors holding power sector equities should review their portfolios in light of recent quarterly results and revised brokerage targets.

## Questions & Answers

### 1. At what price did CG Power shares close?
The stock of CG Power closed 1.23 percent higher at Rs 877 per share on the BSE.

### 2. What was the company's net profit for the June quarter?
The consolidated net profit rose 16.3 percent year-on-year to Rs 313 crore for the quarter ended June.

### 3. What target price has Motilal Oswal set for the stock?
The brokerage maintained a Buy rating with a revised target price of Rs 975 per share.

### 4. How much was the revenue growth reported by the company?
Revenue from operations increased by 14 percent to reach Rs 3,281 crore.

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