Quality Power FY26 PAT Jumps 85% to ₹1,855 Mn
Quality Power Electrical Equipments announced audited FY26 results, with consolidated revenue surging 156.9% to ₹10,070 million and PAT increasing 85.3% to ₹1,855 million. The company achieved record revenue, driven by strong performance across HVDC, FACTS, and BESS segments, and maintained a healthy order book exceeding ₹1,400 crore. The Board recommended a final dividend of ₹1 per share and approved enabling resolutions to raise up to USD 75 million for growth initiatives. Management provided FY27 guidance of 15-20% revenue growth and outlined capacity expansion plans, including the Sangli plant and new PCS facility in Turkey.
*this image is generated using AI for illustrative purposes only.
Quality Power Electrical Equipments has announced its audited financial results for the quarter and financial year ended March 31, 2026, crossing ₹10 billion in consolidated annual revenue for the first time in the company's history. The company reported a standalone net profit of ₹164.83 million for the quarter, a significant increase from ₹85.09 million in the corresponding period of the previous year. Standalone revenue from operations rose to ₹708.86 million, compared to ₹442.33 million in Q4 FY25. For the full financial year, standalone net profit stood at ₹548.71 million, while revenue from operations reached ₹2,219.06 million. The audited results were reviewed by the Audit Committee and approved by the Board at its meeting held on May 13, 2026. M/s. Kishor Gujar & Associates, Chartered Accountants (Firm Registration No. 116747W), Statutory Auditors of the Company, issued an unmodified audit opinion on both the standalone and consolidated financial results.
The Board placed on record its appreciation of the strong operational and financial performance delivered during the year, highlighting meaningful improvement in profitability and the successful operational integration of Mehru Electrical and Mechanical Engineers Private Limited, with margins improving to approximately 20% in the quarter and approximately 15% within one year of acquisition. The Board also noted a healthy order book position exceeding ₹1,400 crore, representing approximately 1.4x of FY26 revenue, providing strong forward visibility into FY27 and beyond. Pursuant to Regulation 47 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company confirmed that the audited standalone and consolidated financial results were published in Business Standard (English newspaper) and Kesari (Marathi newspaper) on May 15, 2026.
Standalone Financial Performance
The following table summarises the standalone audited financial results for the quarter and year ended March 31, 2026:
| Metric: | Q4 FY26 (₹ Mn) | Q4 FY25 (₹ Mn) | FY26 (₹ Mn) | FY25 (₹ Mn) |
|---|---|---|---|---|
| Revenue from Operations: | 708.86 | 442.33 | 2,219.06 | 1,524.27 |
| Total Income: | 719.39 | 454.51 | 2,273.27 | 1,557.29 |
| Net Profit: | 164.83 | 85.09 | 548.71 | 303.11 |
| Basic EPS (₹): | 2.13 | 1.17 | 7.09 | 4.17 |
Consolidated Financial Performance
On a consolidated basis, Quality Power delivered record results across all key metrics. The Group reported total revenue of ₹3,098 million for Q4 FY26, a 138.5% increase year-on-year, and full-year consolidated total revenue of ₹10,070 million, up 156.9% over the prior year. Consolidated net profit for Q4 FY26 stood at ₹506 million versus ₹305 million in the year-ago quarter, while full-year consolidated PAT reached ₹1,855 million, an 85.3% increase year-on-year. The Q4 figures include one-time provisions arising from the implementation of the new Labour Codes across Indian operations, including subsidiaries.
| Particulars (₹ Mn): | Q4 FY26 | Q4 FY25 | Y-o-Y % | Q3 FY26 | Q-o-Q % | FY26 | FY25 | Y-o-Y % |
|---|---|---|---|---|---|---|---|---|
| Total Revenue: | 3,098 | 1,299 | 138.5% | 2,843 | 9.0% | 10,070 | 3,919 | 156.9% |
| Gross Profit: | 1,438 | 581 | 147.5% | 1,203 | 19.5% | 4,361 | 1,917 | 127.6% |
| Gross Margin (%): | 46.4% | 44.7% | — | 42.3% | — | 43.3% | 48.9% | — |
| Total EBITDA: | 593 | 379 | 56.5% | 793 | (25.3%) | 2,362 | 1,194 | 97.8% |
| Total EBITDA Margin (%): | 19.1% | 29.1% | — | 27.9% | — | 23.5% | 30.5% | — |
| PBT: | 535 | 356 | 50.3% | 743 | (28.0%) | 2,164 | 1,123 | 92.8% |
| PBT Margin (%): | 17.3% | 27.4% | — | 26.1% | — | 21.5% | 28.6% | — |
| PAT: | 506 | 305 | 65.7% | 628 | (19.5%) | 1,855 | 1,001 | 85.3% |
| PAT Margin (%): | 16.3% | 23.5% | — | 22.1% | — | 18.4% | 25.6% | — |
| Basic EPS (₹): | 4.38 | 2.67 | — | — | — | 15.67 | 9.10 | — |
A technical footnote in the reported numbers relates to Endoks, the Turkish subsidiary, where approximately ₹25.7 crore has been recognised under other expenses pursuant to the application of Ind AS 29 relating to hyperinflationary economies. This is an accounting-driven, non-monetary adjustment arising from statutory restatement requirements and does not represent an operating loss, cash outflow, or deterioration in business fundamentals. The underlying operating performance of Endoks continues to remain healthy, with operating margins remaining north of 25%.
FY26 Business Highlights
Quality Power achieved several significant milestones during the year, underpinned by sustained execution momentum across global HVDC, FACTS, BESS, Data Centres, Utility, Renewable energy, industrial, and power-quality customer categories. Key highlights include:
- Crossed ₹10 billion in consolidated annual revenue for the first time in the company's history.
- Closed FY26 with an order book exceeding ₹1,400 crore, representing approximately 1.4x of FY26 revenue.
- Strengthened presence across strategic international markets including North America, Europe, the Middle East, and Asia-Pacific, with multiple repeat orders from Tier-1 utility and EPC customers.
- Continued capital deployment towards capacity expansion, manufacturing integration, advanced testing infrastructure, and import-substitution initiatives.
- Progressed development of the new Global Coil Manufacturing Facility at Sangli, a key capability investment intended to enhance the addressable market in HVDC and FACTS applications.
Order Book and Forward Pipeline
Quality Power enters FY27 with an order book in excess of ₹1,400 crore, anchored by long-cycle, high-engineering-content projects with marquee global utility, transmission system operator, and EPC customers. The order book is well-diversified across geographies and technology segments. Notable breakthrough wins secured during the year include:
| Segment: | Details |
|---|---|
| HVDC — India & Global: | Breakthrough orders across LCC and VSC technologies, including wins on Indian inter-regional HVDC links and multi-terminal VSC schemes in Australia |
| BESS Tenders: | Successful qualifications and order conversions on multiple grid-scale Battery Energy Storage System tenders in Europe |
| FACTS Global Footprint: | New FACTS project and equipment wins (SVC and STATCOM-linked equipment) across the Americas, Europe, the Middle East, and Asia-Pacific |
| Data Centres — United States: | First wave of orders for high-voltage interconnect equipment serving hyperscale and AI-data-centre campuses in the U.S. |
Dividend Declaration
The Board of Directors has recommended a final dividend of ₹1 per equity share, representing 10% of the face value of ₹10 each, for the financial year ended March 31, 2026. The dividend is subject to the approval of shareholders at the ensuing Annual General Meeting and shall be paid within the timelines prescribed under applicable laws. The Record Date/Book Closure Date for determining the entitlement of members shall be intimated separately. The Promoters have voluntarily expressed their intention to waive their entitlement to the dividend to conserve cash in light of the company's proposed fund-raising plans and to minimise avoidable dilution in the interest of all shareholders.
Operational Updates
The company provided updates on its capital expenditure and capacity expansion initiatives across multiple facilities. A planned capital expenditure of approximately ₹17.2 crore has been envisaged for Mehru Expansion, which includes GIS component production equipment and high-voltage testing equipment. Mehru also proposes to develop its first 765 kV equipment over the next few quarters.
| Capex Initiative: | Status / Details |
|---|---|
| Sangli Plant Construction: | Production commencement expected first week of August 2026; Engineering Centre to commence shortly, completion in ~12 months |
| Mehru Expansion: | Planned capex of ~₹17.2 crore; includes GIS component production and high-voltage testing equipment; first 765 kV equipment planned |
| HVDC CTC Magnet Wire Facility: | On track for commissioning in Q3 FY 2026–27 |
| Endoks PCS Facility (Nigde, Turkey): | First phase capex ~USD 2 million; targeted completion December 2026 |
The Sangli Plant construction has been marginally rescheduled due to constraints in the availability of raw materials and labour arising from the prevailing geopolitical situation, with production commencement now expected in the first week of August 2026. Endoks is establishing a new Power Conversion System (PCS) facility at Nigde, Turkey, in view of the commencement of PCS orders for Battery Energy Storage System (BESS) projects.
Corporate Developments
The Board reviewed the status of the proposed acquisition/investment transaction in Veeral Controls Private Limited and noted that certain conditions precedent and compliance requirements on the part of the existing shareholders/sellers are presently pending fulfilment. Accordingly, the Board has decided to keep the proposed transaction in abeyance until satisfactory completion of the said pending requirements.
The Board has also accorded in-principle approval for the proposed merger/amalgamation of S&S Transformers & Accessories Private Limited, a wholly owned subsidiary, with the company by way of a Scheme of Arrangement under the applicable provisions of the Companies Act, 2013. The proposed merger is intended to achieve operational efficiency, cost optimisation, and simplification of the corporate structure.
Furthermore, the Board has accorded enabling authorisation for raising funds up to an aggregate amount not exceeding USD 75 million or its equivalent in any other currency, in one or more tranches, through permissible modes including equity shares, eligible securities, Qualified Institutions Placement, preferential issue, private placement of debt securities, foreign currency borrowings, or such other instruments as may be permitted under applicable laws. The proposed fund raise is intended to provide strategic growth capital and financial flexibility for potential international expansion, acquisitions, mergers, technology investments, and capacity augmentation opportunities.
Earnings Conference Call
Pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the audio recording of the earnings conference call held on Thursday, May 14, 2026, at 12:00 p.m. (IST) is available on the Company's website. The link for the audio recording is: https://qualitypower.com/wp-content/uploads/2026/05/Q4-and-FY2026-Earnings-Call.mp3 .
During the call, management provided guidance for FY27, indicating a revenue growth of approximately 15% to 20% as the company stabilises operations and integrates new capacities. The company highlighted that the current order book exceeds ₹1,400 crore, with Quality Power specifically holding an order book of approximately ₹520 crore. Management noted that the BESS business has an existing order book of about USD 31 million, with a target to reach USD 60 to 80 million by the end of the year. Regarding the Sangli plant, management guided for trial production to commence by the end of July or August 2026, with full-scale ramp-up expected subsequently. The company also addressed the Ind AS 29 adjustment of approximately ₹25.7 crore in the Turkish subsidiary, clarifying it as a non-cash, accounting-driven entry.
Management Commentary
Mr. P.T. Pandyan, Chairman & Managing Director, commented on the results:
"FY2026 has been a defining year in the evolution of Quality Power. Over the past several years, our focus has been on systematically transforming the organisation from a traditional high voltage equipment manufacturer into a globally relevant technology driven power infrastructure company with deeper engineering capabilities, broader product integration and stronger participation across next generation grid applications. We believe FY26 marks an important inflection point in that journey.
During the year, we continued to expand our technological and manufacturing ecosystem across multiple verticals. Significant progress was achieved towards the development of our upcoming Global Coil Manufacturing Facility, which is being designed not merely as a capacity expansion project, but as a strategic platform for advanced HVDC and FACTS coil technologies, high precision winding systems, specialised insulation processes and integrated testing capabilities.
One of the most important structural shifts underway globally is the convergence of energy infrastructure with digital infrastructure. The rapid rise of AI driven computing, hyperscale data centres, renewable integration and distributed power architectures is fundamentally changing the behaviour of electrical networks. Technologies such as HVDC, STATCOM, FACTS, high performance reactors, specialised transformers and power quality systems are becoming central to future transmission and industrial infrastructure planning.
We remain deeply grateful to our customers for their continued trust, to our employees for their commitment and technical excellence, and to all our stakeholders for their continued confidence and support. We look ahead with humility, ambition and a strong sense of responsibility as we continue building a globally respected technology focused organisation for the future."
Historical Stock Returns for Quality Power Electrical Equipments
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.13% | -4.73% | -24.65% | +41.38% | +119.21% | +168.06% |
How might the USD 75 million fund raise impact Quality Power's international acquisition strategy, and which geographies or technology segments are most likely to be targeted for expansion?
With EBITDA margins compressing from 30.5% in FY25 to 23.5% in FY26 despite strong revenue growth, what structural factors could determine whether margins recover or continue to decline as new capacities ramp up in FY27?
Given that the Veeral Controls acquisition has been put in abeyance due to unresolved conditions precedent, what are the potential alternative acquisition targets that could fill the capability or market gap Quality Power was seeking to address?
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