CG Power and Industrial Solutions Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, CG Power and Industrial Solutions Limited (NSE:CGPOWER) last week released its latest second-quarter, and things did not turn out so great for shareholders. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹29b, statutory earnings missed forecasts by 12%, coming in at just ₹1.82 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Taking into account the latest results, the consensus forecast from CG Power and Industrial Solutions' 16 analysts is for revenues of ₹124.4b in 2026. This reflects a satisfactory 6.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 9.6% to ₹7.75. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹125.6b and earnings per share (EPS) of ₹8.05 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for CG Power and Industrial Solutions

It might be a surprise to learn that the consensus price target fell 10% to ₹692, with the analysts clearly linking lower forecast earnings to the performance of the stock price. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic CG Power and Industrial Solutions analyst has a price target of ₹820 per share, while the most pessimistic values it at ₹472. 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. We would highlight that CG Power and Industrial Solutions' revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2026 being well below the historical 23% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 20% per year. Factoring in the forecast slowdown in growth, it seems obvious that CG Power and Industrial Solutions is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for CG Power and Industrial Solutions. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of CG Power and Industrial Solutions' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple CG Power and Industrial Solutions analysts - 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.