1. At a Glance
Once a distressed asset, now a ₹1 lakh+ crore market cap beast—CG Power’s turnaround story is basically Zindagi Na Milegi Dobara for industrial stocks. With Q1 FY26 sales up 25% and PAT at ₹286 Cr (+23%), this ex-zombie has turned into the Iron Man of Indian electricals. Also, they just raised ₹3,000 Cr via QIP and bought an RF components business because… well, they can.
2. Introduction with Hook
If companies were Bollywood characters, CG Power was Kangana Ranaut in “Queen”—dumped, broke, lost… and then boom, solo Europe trip, self-discovery, and market domination.
From -₹1,300 Cr net loss in FY20 to ₹1,000 Cr+ PAT now.
From debt-laden drama to almost debt-free Nirvana.
From 2-digit stock to ₹680 beast.
It’s Murugappa magic, and it’s electrifying.
3. Business Model – WTF Do They Even Do?
“Basically, they make giant industrial stuff that ensures your AC runs and your factory doesn’t blow up.”
Core Segments:
- Power Systems:
Transformers, switchgears, and power conversion products for utilities. - Industrial Systems:
Motors, drives, automation—stuff that runs factories smoother than your startup’s espresso machine. - Customers:
PSU utilities, industrial plants, metro rail, defence, export markets.
“They sell shaktimaan-level electric gear, but with boardroom discipline.”
4. Financials Overview – Rewiring for Returns
“Margins that finally look less like a horror story and more like a spreadsheet flex.”
Q1 FY26 Highlights:
| Metric | Value | YoY Growth |
|---|---|---|
| Revenue | ₹2,643 Cr | +25% |
| PAT | ₹286 Cr | +23% |
| OPM | 13% | Stable |
| EPS | ₹1.76 | Steady |
TTM Summary:
| Metric | Value |
|---|---|
| Revenue | ₹10,559 Cr |
| PAT | ₹999 Cr |
| ROE | 27.6% |
| ROCE | 37.5% |
| Book Value | ₹25.1 |
| P/E | 108x |
| P/B | 27x |
5. Valuation – Pricey Like a Tesla Charger
“Paying 108x earnings is like buying Maggi at a 5-star hotel… thrilling, but fiscally irresponsible.”
Fair Value Estimate:
| Method | Range |
|---|---|
| P/E @ 45x | ₹270–₹300 |
| EV/EBITDA @ 30x | ₹350–₹400 |
Current Price: ₹680
Fair Value Range: ₹300–₹400
Verdict: Ultra-premium. Priced for perfection. Margin of safety left the chat.
6. What’s Cooking – Announcements, Deals, Drama
“QIP, acquisitions, orders — CG Power is now the main character.”
- Q1 FY26 Results:
- ₹2,643 Cr revenue, ₹286 Cr PAT
- 13% EBITDA margin
- Large orders worth ₹641 Cr bagged
- ₹3,000 Cr QIP Raised:
- Yes, they just got a fresh war chest
- Acquisition:
- Bought RF Components business for ₹285 Cr — diversification play
- Order Book Strong:
- High-value power infra projects, green energy tenders incoming
7. Balance Sheet – From Debt Trap to Flex Mode
| Item | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 306 |
| Reserves | 3,538 |
| Borrowings | 41 |
| Other Liabilities | 3,528 |
| Total Assets | 7,413 |
“Debt so low it could pass off as a typo.”
This balance sheet’s glow-up should be taught in finance school.
8. Cash Flow – Lights ON, Cash Flowing
| Year | Ops CF | Invest CF | Finance CF | Net CF |
|---|---|---|---|---|
| FY23 | ₹947 Cr | ₹-21 Cr | ₹-612 Cr | ₹315 Cr |
| FY24 | ₹1,028 Cr | ₹-1,294 Cr | ₹-246 Cr | ₹-512 Cr |
| FY25 | ₹944 Cr | ₹-568 Cr | ₹-167 Cr | ₹210 Cr |
“Operating cash flow is the hero. Investing cash flow? A shopping addict.”
9. Ratios – Sexy or Stressy?
| Ratio | Value | Status |
|---|---|---|
| ROE | 27.6% | Sexy AF |
| ROCE | 37.5% | Industrial Gold |
| P/E | 108x | Dangerously frothy |
| Debt/Equity | 0.01 | Cleaner than Ganga |
| OPM | 13% | Healthy |
“ROCE that rivals small-cap VCs, P/E that screams Silicon Valley delusion.”
10. P&L Breakdown – Comeback Kid’s Numbers
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹6,973 Cr | ₹1,005 Cr | ₹963 Cr |
| FY24 | ₹8,046 Cr | ₹1,142 Cr | ₹1,428 Cr |
| FY25 TTM | ₹10,559 Cr | ₹1,354 Cr | ₹999 Cr |
“From -₹1,300 Cr loss to ₹1,000 Cr profit—Bollywood doesn’t write arcs this well.”
11. Peer Comparison – Powerhouse Face-Off
| Company | Rev (Cr) | PAT (Cr) | P/E | ROCE |
|---|---|---|---|---|
| CG Power | 10,559 | 999 | 108x | 37.5% |
| ABB India | 12,267 | 1,889 | 64x | 38.6% |
| Siemens | 17,506 | 1,879 | 59x | 23.6% |
| Hitachi Energy | 6,385 | 384 | 230x | 19.1% |
| BHEL | 28,339 | 533 | 164x | 4.5% |
“CG Power: Not the biggest, but the comeback king with ROI kung-fu.”
12. Miscellaneous – Shareholding, Buzz & Background Music
- Promoters (Murugappa Group): 56.4% — rock solid
- FIIs: 12.7% — love the turnaround story
- DIIs: 16.3% — increasing interest
- Public: Shrinking, retail moving on from multibagger hangover
- QIP Effect: Raised ₹3,000 Cr without equity dilution panic
- Backstory: From fraud & boardroom battles to institutional trust & Murugappa stewardship
“This is the Bajaj Auto of industrials — conservative DNA, now with performance upgrades.”
13. EduInvesting Verdict™
CG Power isn’t a value stock anymore — it’s a momentum myth with real earnings. The business is real, the margins are real, the valuation? Well… that’s a different reality.
For anyone chasing quality + momentum + clean books + industrial revival, CG is a solid poster child.
But priced like a mid-cap Ferrari.
A powerhouse, yes. But don’t expect parking space at bargain-basement prices.
Written by EduInvesting Team | July 24, 2025
Tags: CG Power, Q1 FY26, Murugappa Group, Turnaround Stock, Electrical Equipment, EduInvesting Premium
