More Stories

Informist, Wednesday, Jul. 22, 2026

 

By Astha Oriel 

 

NEW DELHI – CG Power and Industrial Systems Ltd. is likely to report year-on-year growth in consolidated revenue and net profit for the June quarter, according to brokerages tracking the company. Revenue is expected to be helped by healthy execution of the order book in the power systems business, analysts said. The company's operating margin is also expected to expand, aided by price hikes in motors, a higher contribution from the power systems business, and improved margins in that segment. 

 

The Murugappa group company's consolidated net profit is estimated at INR 3.35 billion, up nearly 25% on year but down almost 8% sequentially, according to the average of estimates by five brokerages. The highest estimate for net profit is INR 3.67 billion from Nomura Equity Research, and the lowest is INR 2.90 billion from PhillipCapital (India) Pvt. Ltd. The company will announce its June quarter earnings on Jul. 24. If the estimate is realised, it will be the sixth consecutive quarter of a year-on-year increase in net profit. 

 

The company's net sales are seen at INR 35.35 billion, up nearly 23% on year and 3% on quarter. The highest estimate for net sales is INR 36.29 billion from Kotak Securities Ltd. and the lowest is INR 34.58 billion from Motilal Oswal Financial Services Ltd. This is likely to be the 22nd consecutive quarter of a year-on-year rise in consolidated net sales. 

 

Kotak Securities expects the revenue increase to be marginally lower than in previous quarters, as power transformer capacities will take time to ramp up over the next few quarters. Kotak Securities and Motilal Oswal Financial Services Ltd. expect weakness in execution in industrial systems to persist. 

 

In the March quarter, power systems accounted for nearly 48% of the company's revenues, whereas industrial systems contributed around 52%. Nomura expects revenue growth to be 51% on year for power systems and 8% for industrial systems. The brokerage expects the company's order flow to be at INR 48 billion, down 6% on year. In the year-ago quarter, the company's order inflow was INR 51.38 billion. 

 

The company's earnings before interest, tax, depreciation, and amortisation are expected at INR 4.65 billion, as against INR 4.09 billion in the year-ago quarter. The company's EBITDA margin is expected to contract to 13.2%-13.5% from 14.2% in the year-ago quarter, according to three brokerages. "We expect power systems EBIT margins to expand 24 basis points on year, while industrial systems EBIT margins are likely to contract by 113 basis points on year on account of higher copper prices and intense competition," Nomura said. 

 

Analysts will watch for management's comments on export opportunities, demand outlook for short-cycle products, commodity inflation, the ramp-up of the G1 outsourced semiconductor assembly and test facility, and project execution of the G2 outsourced semiconductor assembly and test facility.  

 

Wednesdsay, the company's shares ended 0.2% lower at INR 912.85 on the National Stock Exchanges. The company's shares have risen 10% since it announced the March quarter earnings on May 6. 

 

All seven brokerage reports on the company available with Informist have a 'buy' recommendation on the stock with an average target price of INR 987, up 8% from the current market price.

 

The Following are the June quarter earnings estimates for CG Power and Industrial Systems from five brokerages in descending order of the estimate of net profit in INR billion:

 

BROKERAGE	NET SALES	NET PROFIT	EBITDA
Nomura Equity Research	35.94	3.67	4.82
Kotak Securities Ltd	36.29	3.53	4.91
Motilal Oswal Financial Services Ltd	34.58	3.38	4.56
Nuvama Wealth Management Ltd	35.13	3.28	4.57
PhillipCapital (India) Pvt Ltd	34.84	2.90	4.39
Average	35.35	3.35	4.65

End

 

Edited by Saji George Titus

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.