CG Power Shares Have Rallied 29% in 2026, but Analysts Are Still Raising Their Bets: Q2 Profit, Order Backlog, Valuation and Key Levels

CG Power shares are an unusual case, because the daily RSI is only 33.42 even after a strong quarter, which means the price has been falling while the business has been growing. When CG Power shares trade about 15% below their high and analysts still raise estimates, investors ask whether the gap is an opportunity or a warning. This article reads the quarter, the backlog, the analyst views I could verify, the valuation and the technical levels.

I could not retrieve the names or revised targets of any brokerage that changed its view after the Q2 results, so the analyst section below uses calls from earlier months and says so. The 29% year-to-date gain is taken from the headline, since I did not verify the first trading day price. It is educational and not advice.

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CG Power Q2 FY27 Results: Profit, Revenue and Margin

CG Power shares: Q2 FY27 (Rs crore)	Sep 2026	Sep 2025	Growth (my calculation)
Consolidated revenue (data provider)	3,883.25	2,988.89	29.9%
EBITDA (data provider)	621.29	442.81	40.3%
Operating margin	16.34%	15.15%	Up 1.2 percentage points
Net profit (data provider)	409.09	284.44	43.8%
Net profit (SAHI report)	412	290	About 42%

The results beat the estimates quoted in a SAHI report, which listed consensus at Rs 359 crore of profit, Rs 3,559 crore of revenue and an EBITDA margin of 12.5%. That report says it may be AI-assisted, and its EBITDA of Rs 540 crore and 14.2% margin differ from the data provider's Rs 621.29 crore and 16.34%, so I treat the beat as a direction, not an exact size.

On a standalone basis the company reported sales of Rs 3,505 crore, up 32%, profit before tax of Rs 602 crore, up 47%, and profit after tax of Rs 450 crore, up 46%, which management described as a record. Standalone profit is higher than consolidated profit, which suggests that subsidiaries, including the new semiconductor business, were still a drag on the group.

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Order Backlog Behind CG Power Shares

CG Power shares: segment (Q2 FY27)	Sales (Rs crore)	Order intake (Rs crore)	Order backlog (Rs crore)
Power Systems	1,769, up 41%	6,258, up 137%	18,964, up 81%
Industrial Systems	1,738, up 25%	1,758, up 12%	2,856
Consolidated	3,802, up 30%	8,485, up 78%	23,646

The backlog of Rs 23,646 crore is about 6.1 times the quarter's consolidated sales (my calculation), so the revenue visibility is long. Power Systems carries almost all of it, at Rs 18,964 crore, and its profit before interest and tax of Rs 443 crore came with a margin that was up 430 basis points year on year. For CG Power shares, the transformer and switchgear business is therefore the main driver, and the industrial motors business is the slower part.

Capacity is growing too, which supports CG Power shares. A Motilal Oswal note from early September 2026 said that the new Sehore transformer plant in Madhya Pradesh adds 45,000 MVA of capacity, taking the total to 120,000 MVA. A subsidiary, Axiro Semiconductor, also acquired Tosil Systems for Rs 16.44 crore.

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What Analysts Say About CG Power Shares

CG Power shares: analyst view	Rating and target	Date and basis
Motilal Oswal	Buy, target Rs 1,020 (from Rs 975)	Early September 2026; sum-of-the-parts valuation after a visit to the Sehore plant
Nomura	Buy, target reported at Rs 1,100	June 2026 report headline; I did not retrieve the full note
Post-Q2 changes	Not retrieved	The headline says analysts are raising their bets, but I could not find the names or numbers

Motilal Oswal's September note forecast a revenue CAGR of 25%, an EBITDA CAGR of 33% and a PAT CAGR of 28% for FY26 to FY29. It put the forward price to earnings at 90.3 times for FY27, 67.7 times for FY28 and 53.5 times for FY29 at a price of Rs 895. The Rs 1,020 target was described as a valuation roll-forward and not a change in business assumptions, and it implies about 14% upside from that price.

The same note listed risks: slower transmission and distribution capex, higher commodity prices, weak motor demand and limited experience in semiconductor assembly. At today's CG Power share price of Rs 834.40, a target of Rs 1,020 would be about 22% above the price (my calculation), but that target is from before the Q2 results and should be checked against current reports.

Valuation of CG Power Shares

CG Power shares: measure	Reading (data provider)	Comment
Price to earnings	96.19	Industry level is 40.02
Price to book	15.02	Book value Rs 55.47 per share
Return on equity	15.74%	Modest against the multiple
Earnings per share (TTM)	Rs 8.66	Rising each quarter
Debt to equity	0.02	Almost debt-free
Market cap	Rs 1,31,237 crore	Data provider
Dividend yield	0.16%	Negligible

The trailing multiple of 96.19 is about 2.4 times the industry level, and the return on equity of 15.74% does not match a price to book of 15.02. CG Power shares are valued on growth in the next three years, which is why the margin and the backlog matter more than the latest quarter's profit. The balance sheet is a strength, with debt to equity at 0.02, so the CG Power share price depends on growth and not on balance sheet strength alone.

Technical Levels for CG Power Shares

CG Power shares: indicator	Reading	Meaning
Price at 1:15 PM	Rs 834.40	Day range Rs 832.60 to Rs 848.70
14-day RSI	33.42	Weak, close to oversold
20-day EMA	Rs 846.71	Price is about 1.5% below it (my calculation)
SuperTrend (10, 3)	Buy; lower band Rs 780.79, upper band Rs 899.53	Price is 6.9% above the lower band (my calculation)
52-week range	Rs 525.50 to Rs 980.90	About 14.9% below the high

The day's open of Rs 846 was above the close, and sellers have capped the price near Rs 848.70. A close above the 20-day average of Rs 846.71 would be the first sign of recovery for the CG Power share price, while a fall below the SuperTrend lower band of Rs 780.79 would turn the signal negative. These are trend readings and not targets or recommendations.

Risks and What to Watch Next

1. Valuation. At 96.19 times earnings, CG Power shares have little room for a slowdown in orders.
2. Order conversion. The Rs 23,646 crore backlog behind CG Power shares must turn into revenue on schedule, with margins intact.
3. Commodity costs. Higher copper and steel prices can squeeze margins in transformers.
4. Semiconductor business. Limited experience in assembly and testing is a stated risk, and the segment is still loss-making at the group level.
5. Source differences. Reports show different profit and margin figures for CG Power shares, so check the exchange filing.

Conclusion: CG Power Shares Have Strong Results, but a Demanding Valuation

CG Power shares have a record quarter, a long backlog and a near debt-free balance sheet, yet the stock sits about 15% below its high with a weak RSI. The price already assumes years of growth, so orders and margins have to keep surprising. CG Power shares may stay volatile around Rs 846 and Rs 780. Verify the filings and decide according to your own risk profile.

Frequently Asked Questions

Why have CG Power shares rallied 29% in 2026?

Ans. The headline attributes the gain to India's push to modernise its power grid, expand transmission networks and raise industrial capex. Q2 FY27 results showed power systems order intake up 137% and a consolidated backlog of Rs 23,646 crore. I could not verify the 29% figure independently, so check the live chart.

What were the Q2 FY27 results of CG Power?

Ans. The data provider shows consolidated revenue of Rs 3,883.25 crore, EBITDA of Rs 621.29 crore and net profit of Rs 409.09 crore, up about 29.9%, 40.3% and 43.8% from a year earlier (my calculation). Other reports show Rs 3,800 crore of revenue and Rs 412 crore of profit. The company reported standalone profit after tax of Rs 450 crore.

What is the order backlog of CG Power?

Ans. The consolidated order backlog is Rs 23,646 crore, and the Power Systems segment holds Rs 18,964 crore of it. Consolidated order intake in Q2 was Rs 8,485 crore, up 78%. The backlog is about 6.1 times quarterly sales (my calculation).

Are CG Power shares overvalued?

Ans. On trailing earnings the stock trades at 96.19 times against an industry level of 40.02, and the price to book is 15.02. Motilal Oswal's forward multiples were 90.3 times for FY27 and 53.5 times for FY29 at Rs 895. High multiples need growth to continue, so risk management matters.

What target prices do analysts have for CG Power shares?

Ans. Motilal Oswal had a Buy with a target of Rs 1,020 in early September 2026, and a June 2026 report put the Nomura target at Rs 1,100. I could not retrieve post-Q2 revisions. These targets are opinions and may change.

What are the key technical levels for CG Power shares?

Ans. Daily readings show an RSI of 33.42, a 20-day EMA of Rs 846.71 and a SuperTrend buy signal with a lower band of Rs 780.79 and an upper band of Rs 899.53. The 52-week range is Rs 525.50 to Rs 980.90. These are trend readings and not targets.

What are the risks for CG Power shares?

Ans. The main risks are a high valuation, slower transmission capex, higher commodity prices, weak motor demand and limited experience in semiconductor assembly. Conversion of the backlog into revenue at stable margins is the key test. Check company filings before taking any decision.

Is this article investment advice?

Ans. No. It is educational and not a recommendation to buy or sell. Please check the figures against company filings and your own risk profile before you act on anything you read here.