CG Power Posts Solid Annual Gains, But Momentum Slows from Previous Quarter
CG Power's Q1 FY27 shows healthy year-on-year growth in revenue and profit, though both metrics declined sequentially from the strong Q4.
CG Power reported a 14% YoY rise in revenue and a 15.5% jump in profit for Q1 FY27. However, both figures were down from the previous quarter, indicating a sequential slowdown.
CG Power and Industrial Solutions began its new fiscal year with robust year-on-year growth, though momentum eased from the previous quarter's high. For Q1 FY27, revenue rose 14% to ₹3,281 crore, while profit after tax climbed 15.5% to ₹308 crore compared to the same period last year. This performance extended the company's multi-quarter growth trend, but both top and bottom lines softened from the March 2026 quarter.
The net profit margin improved slightly to 9.4%, up 10 basis points from Q1 FY26, but retreated from the 10.6% margin achieved in Q4. The trailing-twelve-month (TTM) net profit margin stands at a healthier 9.7%, suggesting the latest quarter's profitability is slightly below the recent average. The sequential dip in revenue and profit points to a potential seasonal moderation or a tough comparison against a strong preceding quarter.
A look at the last five quarters shows the company's steady upward trajectory on an annual basis:
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period Ended | June 2026 | March 2026 | June 2025 |
| Revenue (₹ Cr) | 3,280.81YoY +14% | 3,441.76 | 2,878.05 |
| Profit (₹ Cr) | 308.28YoY +16% | 363.46 | 266.87 |
| Net Profit Margin (%) | 9.4YoY +1.1% | 10.6 | 9.3 |
Key Points
- The company maintains a pristine balance sheet with zero debt and a strong interest coverage ratio of 67x.
- Return on Equity (RoE) remains robust at 20.4%, reflecting efficient use of shareholder capital.
- The stock has delivered impressive returns, gaining 30.8% over the past year and 118% over three years.
These strong fundamentals are reflected in a premium valuation, with the stock trading at a P/E of 85.6, significantly above the industry average. The key question for investors is whether the Q1 sequential slowdown is a temporary pause or the start of a new trend, which will be clarified by execution in the coming quarters.
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· CGPOWER
(BSE)
ISIN: INE067A01029
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