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 Electrical Equipments 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
• PAT (Profit After Tax) of INR 352.00 million, up 161.90% 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
• PAT of INR 722.00 million

Order Book and Market Position

The company maintains an order backlog exceeding INR 8,300.00 million across the Quality Power Group, providing strong visibility for future growth.

Strategic Developments

1. Acquisition Plans: Quality Power Electrical Equipments has signed a binding term sheet with Yash Highvoltage Ltd to jointly acquire 100% stake in Sukrutelectric Company at an enterprise value of INR 10.20 crore.

2. Digital Capabilities Enhancement: The company has acquired a 26% stake in Nebeskie Labs through a subsidiary, strengthening its position in digital technologies.

3. Marquee Order: The company has secured a significant order for 500kV smoothing reactors for PGCIL's Rihand-Dadri HVDC link project with Hitachi Energy India.

4. Capacity Expansion:

   • The company is expanding capacity at multiple facilities, including a 45% capacity increase expected at the Bhiwadi plant.
   • Cochin and E-5 units are expected to be completed by November 2025.

Outlook

Quality Power Electrical Equipments remains focused on execution efficiency and cost discipline. The company's strong financial performance, expanding order book, and strategic initiatives in capacity enhancement position it well for continued growth in the power equipment sector.

The company's ability to secure significant orders and expand its manufacturing capabilities demonstrates its strong market position in the evolving energy landscape.

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).