CG Power and Industrial Solutions Limited Just Missed Earnings - But Analysts Have Updated Their Models

CG Power and Industrial Solutions Limited (NSE:CGPOWER) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Statutory earnings per share of ₹1.76 unfortunately missed expectations by 14%, although it was encouraging to see revenues of ₹29b exceed expectations by 3.0%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from CG Power and Industrial Solutions' twelve analysts is for revenues of ₹129.1b in 2026. This would reflect a sizeable 22% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 37% to ₹8.71. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹128.4b and earnings per share (EPS) of ₹8.51 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for CG Power and Industrial Solutions

The consensus price target was unchanged at ₹747, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values CG Power and Industrial Solutions at ₹890 per share, while the most bearish prices it at ₹531. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting CG Power and Industrial Solutions' growth to accelerate, with the forecast 31% annualised growth to the end of 2026 ranking favourably alongside historical growth of 24% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 19% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that CG Power and Industrial Solutions is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around CG Power and Industrial Solutions' earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹747, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for CG Power and Industrial Solutions going out to 2028, and you can see them free on our platform here..

You can also see our analysis of CG Power and Industrial Solutions' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.