Quality Power Electrical Equipments has reported robust financial results for the second quarter of fiscal year 2026, demonstrating significant growth across key metrics.

Financial Highlights

For Q2 FY2026, Quality Power achieved:

• Total revenues of INR 2,189.00 million, up 112.40% year-on-year
• EBITDA of INR 494.00 million, a 193.40% increase year-on-year
• EBITDA margin of 24.00%, compared to 17.80% in Q2 FY2025
• Profit before tax (PBT) of INR 443.00 million, up 213.20% year-on-year

Half-Year Performance

For H1 FY2026, the company reported:

• Total revenues of INR 4,130.00 million, a 126.00% increase year-on-year
• EBITDA of INR 977.00 million, up 66.70% year-on-year
• PBT of INR 886.00 million, a 61.50% rise year-on-year

Order Book and Market Position

The company's consolidated order book stands at approximately INR 830.00 crore, providing strong visibility and diversification across continents. Quality Power has secured significant international orders across utilities, renewable developers, data centers, and industrial networks, reinforcing its position as a global technology partner in grid stability and power-quality systems.

Strategic Developments

1. GIS Technology Advancement: Mehru Electrical & Mechanical Engineers Pvt Ltd., a group subsidiary, has entered a co-development partnership with Hyosung T&D India Ltd. for Gas-Insulated Switchgear (GIS) technology. This collaboration aims to jointly design and manufacture GIS instrument transformers, opening opportunities in metro rail, offshore wind, and urban transmission systems.

2. Digital Capabilities Enhancement: Quality Power has increased its stake in Nebeskie Labs Private Limited to 26%, strengthening its digital capabilities in edge computing, AI analytics, and IoT-enabled condition monitoring.

3. Capacity Expansion:

   • The Global Coil Factory at Kupwad MIDC, Sangli, is ahead of schedule, with commissioning targeted before June 2026.
   • The Cochin expansion is set to go live in December 2025, increasing dry-type coil capacity.

4. Breakthrough Order: The company has secured a significant order for High Voltage Converter Reactors used in Voltage Source Converter (VSC) based HVDC systems in the global market, marking a key step in positioning Quality Power among limited global players in this critical segment.

Management Commentary

Bharanidaran Pandyan, Joint Managing Director, stated, "Our Q2 performance reflects the underlying strength of our business fundamentals. We continue to focus on execution efficiency and cost discipline, which has supported stable margins despite a dynamic market environment."

Outlook

Quality Power Electrical Equipments remains optimistic about maintaining its growth momentum, driven by its expanding global order book and strategic initiatives in technology and capacity enhancement.

The company's strong financial performance, coupled with its strategic moves in GIS technology and digital capabilities, positions it well to capitalize on opportunities in grid modernization and energy transition markets globally.

Quality Power Electrical Equipments Limited (QPEEL) has reported a strong financial performance for the second quarter of fiscal year 2025-26, with significant growth in revenue and profitability.

Financial Highlights

For the quarter ended September 30, 2025, QPEEL reported:

• Consolidated revenue from operations of ₹2,057.58 crore, a 118% increase from ₹943.14 crore in the same quarter last year.
• Consolidated net profit of ₹243.28 crore, up 108.7% from ₹116.59 crore in Q2 FY2024-25.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of ₹362 crore, a substantial rise from ₹82 crore year-over-year.
• EBITDA margin expanded to 17.59% from 8.70% in the corresponding quarter of the previous year.

Operational Performance

The company's robust performance can be attributed to several factors:

• Strong execution efficiency and cost discipline, which supported stable margins despite a dynamic market environment.
• Significant investments in manpower, technology, and capability enhancement in anticipation of upcoming capacity expansions and large-scale order inflows.
• Notable margin expansion in its subsidiary, Mehru Electrical & Mechanical Engineers Private Limited, driven by improved product mix and higher realization in export markets.

Strategic Developments

QPEEL has made several strategic moves during the quarter:

• Secured a breakthrough order for High Voltage Converter Reactors used in Voltage Source Converter (VSC) based HVDC systems in the global market.
• Mehru Electrical and Mechanical Engineers Private Limited concluded a partnership with Hyosung T&D India Private Limited, marking a step towards technology self-reliance.
• The Board of Directors approved the reconstitution of the M&A Committee under a new name, 'Business Development and Administration Committee', to oversee new business areas and strategic opportunities.

Expansion Plans

The company provided updates on its ongoing expansion projects:

• The Sangli plant construction is progressing ahead of schedule, despite some delays due to prolonged rains.
• The HVDC CTC Magnet Wire Facility is on track to meet its December 2027 schedule.
• The Cochin expansion is expected to be commissioned in December 2025.
• Mehru's expansion is in progress with equipment being commissioned every month.

Order Book

The group organizations' total order book as of the reporting date stands at approximately ₹830 crore, with a significant portion coming from global orders.

Management Commentary

Bharanidaran Pandyan, Joint Managing Director, commented on the results: "QPEEL has delivered a robust operational performance during the quarter, broadly in line with our guidance and reflective of the underlying strength of our business fundamentals. Our continued focus on execution efficiency and cost discipline has supported stable margins despite a dynamic market environment."

The company's strong performance and strategic initiatives position it well for future growth in the power equipment sector, both domestically and globally.

Note: All financial figures are in Indian Rupees (INR).