CG Power (CGPOWER) | News Based Sentiment Analysis

• On September 2, 2025, CG Power announced its Q1 FY26 consolidated net profit jumped 11.6% to Rs 269.23 crore, with net sales increasing 29.2% to Rs 2,878.05 crore compared to Q1 FY25, demonstrating strong financial performance and setting a positive tone for the year.
• CG Semi launched India's first Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat on August 28, 2025, representing a significant Rs 7,600 crore ($870 million) investment over five years, with the G1 facility aiming for 0.5 million units per day and the G2 facility targeting 14.5 million units per day. Prime Minister Modi noted the plant had commenced its pilot phase.
• Following the Q1 FY26 earnings release on September 2, 2025, Morgan Stanley initiated coverage with an "overweight" rating and a base case price target of ₹799 – a potential 15% upside – and a bull case target of ₹1,044, indicating strong confidence in the company’s growth prospects.
• The board approved a greenfield expansion on September 4, 2025, for 45,000 MVA power transformer capacity at a cost of Rs 7.12 billion, increasing total capacity to 85,000 MVA by FY28, alongside a Rs 1.55 billion expansion at the Nashik switchgear facility, signaling continued investment in core infrastructure.
• CG Power reported a 40% year-on-year growth in order inflows for FY25, reaching Rs 146.84 billion on September 4, 2025, with an unexecuted order backlog of Rs 106.31 billion, up 66% YoY, demonstrating strong demand for its products and services.
• The stock price surged, jumping 3.02% on September 2, 2025, and gaining 11.23% over three sessions from August 28, 2025, following the OSAT facility launch, with trading volume reaching 63.3 lakh shares compared to a daily average of 38.31 lakh shares.
• A Lock-Up Agreement for 45,454,545 Equity shares ended on September 2, 2025, after being in effect for 60 days from July 4, 2025, potentially increasing the stock's liquidity.

The Investment Story: September was a remarkably strong month for CG Power, driven by robust financial results, a massive investment in semiconductor manufacturing, and significant order inflows, solidifying its position as a key player in India’s infrastructure and technology sectors.

What It Means for Investors: The combination of strong earnings, strategic expansion into semiconductors, and a growing order backlog suggests substantial growth potential for CG Power. The positive analyst ratings and stock performance indicate increasing investor confidence, though the long-term success of the semiconductor venture will be crucial.

Looking Ahead: Investors should closely monitor the progress of the OSAT facilities, particularly the G1 facility's commercial production launch later this year, as well as the execution of the capacity expansions in power transformers and switchgear. Further financial reports will be key to assessing the impact of these investments.

The Bottom Line: CG Power is demonstrating impressive momentum, fueled by both core business strength and a bold foray into a strategically important industry. While risks remain, the company appears well-positioned to benefit from India’s economic growth and increasing demand for infrastructure and technology, making it a compelling investment opportunity.