CG Power Shares Reach Fresh 52-Week High After Q4 Earnings, Nomura Adjusts Target Price

CG Power and Industrial Solutions Shares Hit 52-Week High

CG Power and Industrial Solutions shares rose nearly 5% to hit a fresh 52-week high on Thursday after the company reported strong March-quarter earnings, while brokerage Nomura Holdings Inc raised its target price on the stock.

The stock was trading at Rs 869.15, up 4.86% during Thursday's session, according to NSE data.

CG Power's consolidated revenue for Q4 FY26 stood at Rs 3,441 crore, a 25% year-on-year increase. The company's net profit (PAT) rose 32.5% from a year ago to Rs 363 crore, exceeding market expectations of around Rs 333 crore.

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The company's EBITDA increased 35% year-on-year to Rs 466.1 crore, while EBITDA margin expanded to 13.55% from 12.54% in the corresponding quarter last year. This margin performance also exceeded poll estimates of 13.1% and marked the company's highest quarterly margin since the first quarter of FY25.

The growth was led by the power segment, where revenue surged 50% year-on-year to Rs 1,487 crore, supported by strong project execution. EBIT margin for the segment improved to 23.8% from 20.9% a year earlier.

In contrast, the industrial segment posted relatively muted growth. Revenue from the segment increased just 2% year-on-year to Rs 1,791 crore, while margins declined to 8.9% from 11% last year. According to the management, competitive pricing in the railway business and rising commodity costs weighed on profitability in the segment.

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Following the results, Nomura maintained its "Buy" call and raised its target price to Rs 920/share from Rs 820/share. The brokerage said the company delivered strong Q4FY26 with EBITDA and order inflow beating expectations.

Nomura added that the company's transformer capacity expansion strengthens its long-term power systems growth outlook and that a robust order book and export opportunities support future revenue visibility. The brokerage also noted that the motors business performance remains healthy while industrial systems recovery is gradual.

According to Nomura, strong power systems momentum is expected to drive high earnings growth over FY26-29.