CG Power & Industrial Solutions Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

CG Power & Industrial Solutions Ltd trades at ₹886, in a confirmed uptrend and 25 weeks into that stage. That is +7.8% against its own 200-day average. It sits at 79% of a 52-week range of ₹549 to ₹977. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (11 weeks and counting).

Today the stock is in a confirmed uptrend — week 25 of stage 2, confirmed. At ₹886 it trades +7.8% versus its 200-day average and sits at 79% of its 52-week range (₹549–₹977).

Against the market, two honest reads. Cumulative: over the last 10.6 years the stock moved +1,968% while the NIFTY 500 moved +260% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (11 weeks and counting; last ahead the week of 2026-07-10) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

CG Power & Industrial Solutions Ltd's story is not scored yet against the markers our research file set on 22 August 2026. Where it sits in its own cycle: RE_RATED_EXPENSIVE. Still open: The thesis breaks if Power Systems order conversion and the transformer ramp fail to sustain earnings while receivables and inventory continue to absorb cash.

Our read, 22 August 2026. Power Systems execution and a growing order book support earnings delivery, but the re-rated-expensive valuation already assumes sustained delivery while cash conversion, railway approvals and semiconductor spending remain open risks.

From the numbers. The weekly matrix label is an emerging opportunity, but the deterministic normalized valuation verdict is RE_RATED_EXPENSIVE. Earnings have expanded and the multiple has compressed from its earlier high, yet…

From the price. Price stage 2, week 25 — above its 200-day line, relative strength rising.

From the research. Power Systems execution and a growing order book support earnings delivery, but the re-rated-expensive valuation already assumes sustained delivery while cash conversion, railway approvals and semiconductor spending…

🚨 Where they disagree. The weekly matrix label is an emerging opportunity, but the deterministic normalized valuation verdict is RE_RATED_EXPENSIVE. Earnings have expanded and the multiple has compressed from its earlier high, yet normalization raises rather than lowers the multiple because margins are not depressed.

What is proven. Power Systems execution and a growing order book support earnings delivery, but the re-rated-expensive valuation already assumes sustained delivery while cash conversion, railway approvals and semiconductor spending remain open risks.

What is not proven yet. The thesis breaks if Power Systems order conversion and the transformer ramp fail to sustain earnings while receivables and inventory continue to absorb cash.

🚨 What would change our mind. The thesis breaks if Power Systems order conversion and the transformer ramp fail to sustain earnings while receivables and inventory continue to absorb cash.

🚨 Layer 1 read, 22 August 2026 — DROP. Order book is real, but last quarter's profit growth came from other income, not the factory — at 107x earnings. CG Power's order book is up 45.0% to Rs 17,333 crore and gives genuine multi-quarter visibility, and the new transformer plant is a real capacity story. But when I opened the quarterly rows, the June-2026 profit rise of 15.4% turns out to rest on non-operating income: other income went from Rs 28 crore to Rs 84 crore while the factory's own operating profit added only Rs 16 crore, so the operating margin actually fell from 13.2% to 12.1%. At 107 times earnings, where normalising the profits makes the multiple dearer rather than cheaper (118.1x on a model basis), that quality gap is what puts this at the bottom of the batch rather than in a drop.

What would change Layer 1’s mind. Two things together would lift this: a September-2026 quarter where operating profit grows at least in line with revenue — revenue up 15% or better with consolidated margin back at 13-14% — so the profit growth is demonstrably operations-led rather than other-income assisted, plus the RDSO Kavach approval finally landing after being promised in three consecutive calls. What would take it to DROP is the order book ceasing to grow or the cash conversion cycle pushing past 60 days, since the…

The test written in advance. The thesis breaks if Power Systems order conversion and the transformer ramp fail to sustain earnings while receivables and inventory continue to absorb cash. — the thesis as written as stated by the next result.

The test written in advance. Valuation requires continuing delivery — Valuation requires continuing delivery normalized_pe_percentile by the next result.

The test written in advance. Working-capital absorption — Working-capital absorption debtor_days by the next result.

What the company does. The latest quarter delivered revenue and reported profit growth, with Power Systems supplying the main operating contribution. The order book and transformer capacity ramp provide revenue visibility, while exports and switchgear create additional routes to growth. The normalized valuation read remains demanding: normalized earnings do not make the multiple cheaper, so delivery must continue.

🚨 What the surface reading misses. The surface reading is: The trailing valuation appears expensive. The research reads it further: Normalizing margin does not reveal hidden cheapness because current margin is above the estimated through-cycle margin.

🚨 What the surface reading misses. The surface reading is: Operating cash conversion below reported profit can read as weak earnings quality. The research reads it further: Receivables and inventory absorbed cash while revenue expanded; the capital-goods billing pattern may contribute, but receivables are the largest named movement.

Lever 6 · Order-book wins — BUILDING. The Power Systems order book and current demand backdrop provide the clearest source of near-term revenue conversion. What proves it keeps working: Power Systems order conversion. It stops working if Order inflow slows or execution cannot convert the backlog at planned margins.

Lever 7 · Consolidation — BUILDING. A new transformer plant and the stated ramp create an identifiable capacity-led growth path. What proves it keeps working: Transformer capacity ramp. It stops working if The plant is delayed or the commissioned capacity is not absorbed by orders.

Lever 5 · Regulatory approval — BUILDING. Higher Power Systems throughput has supported segment profitability despite pressure elsewhere. What proves it keeps working: Power Systems operating leverage. It stops working if Commodity, competition or under-utilization prevents incremental revenue from reaching segment profit.

Lever 10 · New geographies — BUILDING. Export orders and the commissioned EHV switchgear unit broaden the addressable equipment opportunity. What proves it keeps working: Export and switchgear expansion. It stops working if Export qualification, customer approvals or execution economics delay follow-on orders.

Sources: our stock research file (22 August 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

CG Power & Industrial Solutions Ltd reported ₹3,281 Cr of revenue in the Jun 26 quarter, +14.0% year on year. That is the 12th straight quarter of year-on-year growth. Over 10 years it has compounded at 9.0% a year. The last full year, FY26, came in at ₹12,418 Cr. The last four reported quarters add to ₹12,821 Cr.

Why this happened. Management reported higher Power Systems sales, order intake and backlog, and attributed margin expansion to disciplined execution and operating leverage. This is the core operating driver.

FY26 revenue came in at ₹12,418 Cr (+25.3% on the year), capping 10 years at 9.0% compound. The latest quarter (Jun 26) printed ₹3,281 Cr, +14.0% year on year — the 12th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +21.6% growth against the decade's 9.0% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +21.4% over the last 4 quarters against +23.5%/yr over the last 8 — stabilising; TTM profit +24.0% vs −8.0%/yr — accelerating.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

CG Power & Industrial Solutions Ltd's operating margin is 12.0% in the Jun 26 quarter, −1.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged −2.3% to 14.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 12.0%, −1.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged −2.3%–14.0%.

🚨 Why the margin moved: operating margin went −1.1 pp year on year while gross margin went +0.6 pp — the loss came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

CG Power & Industrial Solutions Ltd earned ₹308 Cr of net profit in the Jun 26 quarter, +15.4% year on year. It is the 6th consecutive quarter of growth. Full-year FY26 profit was ₹1,199 Cr. That is 9.4% of the quarter's revenue. The same quarter a year earlier earned ₹267 Cr.

Jun 26 profit was ₹308 Cr, +15.4% year on year — the 6th consecutive quarter of growth. On the full year, FY26 printed ₹1,199 Cr (+23.2%).

Why profit moved: revenue contributed +14.0% and the margin −1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +24.1% vs revenue +21.6%. Profit and revenue are moving roughly in step.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 74% of CG Power & Industrial Solutions Ltd's reported profit arrived as operating cash — most of the profit is real cash. In FY26 that was ₹702 Cr of operating cash against ₹1,199 Cr of profit. After ₹1,064 Cr of capital spending, ₹−362 Cr was left as free cash.

FY26: operating cash of ₹702 Cr against reported profit of ₹1,199 Cr, leaving free cash of ₹−362 Cr after ₹1,064 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 74% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 74%: the cash cycle stretched 88 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: conversion is below par and the cash cycle has stretched 88 days — the next section's job is to find where the cash is stuck.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

CG Power & Industrial Solutions Ltd's cash conversion cycle runs 48 days in FY26, up from −40 days in FY21. Capital spending ran ₹2,127 Cr over the last 3 years. At FY26 sales of ₹12,418 Cr each day of that cycle holds about ₹34.0 Cr, so roughly ₹1,633 Cr sits inside the business at any moment.

FY26: debtors at 86 days, inventory at 67 days — roughly 2.2 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 48 days, looser than FY21's −40.

The full loop: cash goes out to suppliers and production on day 0; stock waits 67 days to sell; customers pay about 86 days after that; and suppliers themselves are paid at 105 days — netting out to the 48-day cycle.

In money terms: at FY26 sales of ₹12,418 Cr, each day of the cycle holds about ₹34.0 Cr — so the 48-day loop keeps roughly ₹1,633 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹2,127 Cr over the last 3 fiscal years against ₹403 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹725 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the working-capital loop is the cash sink the router flagged — watch the cycle, not the P&L.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

CG Power & Industrial Solutions Ltd earns a ROCE of 27% in FY26. That is up from a trough of −4% in FY17. Return on invested capital clears the cost of that capital by +7.8 percentage points, so growth here adds value rather than only size. The wiring behind it is 9.7% net margin on 0.98× asset turns.

FY26 ROCE is 27%, recovered from a FY17 trough of −4% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 9.7% net margin × 0.98× asset turns × 1.59× balance-sheet leverage ≈ 15.1% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 19.8% − 12.0% = a +7.8 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

CG Power & Industrial Solutions Ltd carries total debt of ₹119 Cr against shareholder equity of ₹8,198 Cr as of Jun 26, a debt-to-equity of 0.01 — effectively unlevered. On the annual view that ratio went from 0.37 in FY22 to 0.01 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Jun 26: total debt of ₹119 Cr against shareholder equity of ₹8,198 Cr — a debt-to-equity of 0.01. On the annual view, debt-to-equity went from 0.37 (FY22) to 0.01 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions added 7.2 points of CG Power & Industrial Solutions Ltd over 8 quarters, the biggest move on the register. That takes domestic institutions to 18.2% of the company. Foreign institutions moved −2.7 points over the same window, to 12.0%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: +7.2 points over 8 quarters to 18.2%; Foreign institutions: −2.7 points over 8 quarters to 12.0%; Promoters: −1.7 points over 8 quarters to 56.4%.

Why the register moved: rotation — foreign institutions −2.7 points against domestic institutions +7.2 points over 8 quarters, with promoters −1.7 points — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

CG Power & Industrial Solutions Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

Why this happened. Management explicitly linked Power Systems margin expansion to disciplined execution and operating leverage. The Operating Leverage Catapult applies only if volume remains ahead of the fixed-cost increase from new capacity.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

CG Power & Industrial Solutions Ltd trades at 110.0× P/E, at the pricey end of its own range (78th percentile). Its long-run median P/E is 81.4×, measured across 5.3 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 110.0× is at the pricey end of its own range (78th percentile), against a long-run median of 81.4× measured over 5.3 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +20.3% against a +19.8% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +51.4%/yr price move, ~+7.3%/yr came from earnings growth and ~+44.1 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Improving Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

CG Power & Industrial Solutions Ltd reads as improving on its fundamental arc. Improving — profit growth bottomed 5 quarters ago at −31.9% and has held its recovery at +24.0%, ROCE holding at 26.8%. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: a sustained climb off the trough is the setup this page is built to catch — the question moves to what you pay for it.

4-Factor Sector Score

No sector-relative score — CG Power & Industrial Solutions Ltd is score temporarily unavailable — [mlaSectorData] ambiguous sector slug "capital-goods-transformers": Capital Goods - Transformers, Capital Goods Transformers for undefined.

The score is a rank WITHIN a peer set: every metric is scored by percentile against the other members. Without the peer set there is no score to state, so none is invented here.

Said versus delivered

What CG Power & Industrial Solutions Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

Transformer Capacity Roadmap Changed · 24 July 2026. In Jan 2025, management said the approved 45,000 MVA expansion would take total capacity to 85,000 MVA by financial year '27, '28, while in Jul 2025 it said the existing plant would reach 40,000 MVA. In Jul 2026, management instead described 75,000 MVA as already operational and another 45,000 MVA still to come, implying approximately 120,000 MVA; it did not explain the additional capacity or reconcile the revised baseline.

🚨 Kavach Approval Timeline Slipped · 24 July 2026. In Jul 2025, management said the ISA audit had occurred and RDSO approval was expected in 4-6 weeks. In Jul 2026, management repeated the same 4-6-week expectation, with no explanation for why the approval had not been obtained roughly a year later, indicating a material delay to the commercialization timeline.

Motor Demand Narrative Reversed · 24 July 2026. In Jul 2025, management said the LT motor market had further deteriorated and that it did not see a recovery. In Jul 2026, management described strong traction across cement, metals and mining, and OEMs, without explaining whether this reflected a broad market recovery or company-specific share gains; the shift is material for the demand and growth outlook.

KAVACH Execution Significantly Behind Schedule · 6 May 2026. The Jan 2025 call committed the GG Tronics Locomotive KAVACH order of INR 500-600 crores to a one-year completion timeline, and the Jul 2025 call stated that commissioning of at least 100 monthly installations would begin within the next couple of months. Yet in the May 2026 call - nearly ten months after the Jul 2025 guidance - passenger trials are still underway with only 12 completed and execution has not yet started. Management has offered no adequate explanation for this multi-quarter delay in a high-profile and nationally significant order.

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions