Even as CG Power & Industrial Solutions Ltd shares have surged 48 per cent so far in 2026, Nomura has raised its target price on the stock and sees another 18 per cent upside, citing sustained domestic demand momentum and an expected acceleration in exports for the electrical engineering solutions company. Nomura, which met the CG Power management in Mumbai, said its export growth narrative was compelling. 

"CG is uniquely positioned at the nexus of supply constraints in Western markets and its ongoing capex, enabling it to capture transformer and switchgear opportunities across the US and European markets when lead times are measured in years and data-center/grid capex is making new highs," Nomura said. 

The brokerage upped its target for CG Power to Rs 1,100 from 1,050 earlier, suggesting 17 per cent upside over Thursday's closing price of Rs 941.90.

Nomura said CG Power's entire transformer capacity has been dedicated towards meeting the healthy domestic demand. That said, CG Power is expanding its transformer capacity by 1.7 times to 110GVA, of which Nomura believes 25-30 per cent will be used for exports, enabling CG to capitalise on the robust US PT export opportunity, in our
view. 

"Notably, CG is focusing more on the non-utility segment in the US currently, as US utility approvals take 1-3 years to fructify. We believe exports can materially increase CG’s TAM and ensure margin stability. We expect Power Systems (PS) segment to log 41 per cent/37 per cet revenue/EBIT CAGR over FY26-29F," Nomura said. 

Nomura said CG Power is addressing product gaps in Industrial Systems (IS) through in-house development and by focusing on value-added products. It is looking to ramp up share of high-efficiency motors and also aims to launch multiple new drives, Nomura said.

In railways, CG Power is aiming to generate higher service revenue from existing products such as traction motors while also focusing on technology development, which management expects, should start revenue contribution after a few quarters. 

"We expect exports to gradually reach 25 per cent of PS order inflows by FY29F. We raise our FY28F/29F EPS estimates by 4 per cent/5 per cent to factor in higher margins due to a stronger export outlook. We estimate a 33 per cent EPS CAGR over FY26-29F," Nomura said.