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CG Power Share Price: Shares of CG Power and Industrial Solutions Ltd slipped 2.5 per cent on the BSE on Thursday, after the company’s September-quarter (Q2FY26) results came in mixed. While the order inflow pipeline remained strong, delays in execution and margin pressure in the Industrial Systems business weighed on sentiment.

At the same time, analysts said the long-term fundamentals remain firm, supported by rising order visibility, higher export contribution, and new investments in semiconductor capacity.

CG Power reported consolidated revenue of Rs 2,922.8 crore, up 21 per cent year-on-year and 1.6 per cent sequentially. Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at Rs 376.7 crore, a growth of 27.8 per cent YoY, while net profit rose 29.5 per cent YoY to Rs 284.4 crore.

However, the numbers fell short of Street estimates by about 6–9 per cent, primarily due to weaker execution across both Power Systems and Industrial Systems divisions. Analysts pointed to muted pricing, higher input costs, and operating leverage pressure, especially in the railways segment, as the key drags on margins.

Following the results, Emkay Global Financial Services downgraded the stock to ‘Add’ from ‘Buy’, even as it raised the target price by 11 per cent to Rs 850. The brokerage cited strong structural tailwinds but expects execution to remain soft in the near term.

The company’s order inflows rose 45 per cent year-on-year to Rs 4,800 crore, led by a sharp 81 per cent jump in Power Systems orders. Management also announced a Rs 750-crore capex to expand switchgear manufacturing capacity to serve both domestic and export markets.

Emkay said it has trimmed its FY26–27 earnings estimates by 7–8 per cent, while maintaining FY28 projections. “CG Power continues to deliver strong return ratios and holds a first-mover advantage in India’s developing semiconductor ecosystem,” it added.

Despite near-term headwinds, global brokerages maintained a positive stance on the stock. Nuvama Institutional Equities reiterated its ‘Buy’ rating with a target price of Rs 870, highlighting growth potential in the Power Systems segment and emerging semiconductor opportunities.

Nomura raised its target to Rs 880 from Rs 840, maintaining a ‘Buy’ call and noting an 81 per cent rise in order inflows and export share climbing to 20 per cent.

Morgan Stanley stayed ‘Overweight’ with a target of Rs 799, citing strong order momentum and progress on the semiconductor G2 facility, expected to be operational by 2026 with 14.5 million units per day capacity. The project involves Rs 7,600 crore capex, supported by 64 per cent government subsidy.

JP Morgan also maintained an ‘Overweight’ rating, with a target of Rs 840, underlining steady execution and robust demand visibility.

Analysts believe the recent correction in CG Power’s stock may offer a buying opportunity for investors with a medium-term view. The company’s Rs 4,800-crore order book, renewed focus on export growth, and investments in semiconductor and switchgear expansion are seen as key growth levers over the next two years.

While margin headwinds could persist in the short run, CG Power’s strong balance sheet, capacity utilisation, and diversification keep it well placed to benefit from India’s manufacturing and power infrastructure push.

Senior Sub-editor at Zee Business English

shweta.shukla@India.com

Shweta Birendra Shukla is a journalist covering the stock market and corporate aff