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).

Quality Power Electrical Equipments , a prominent player in the electrical equipment sector, has made significant strides in expanding its market presence through strategic acquisitions. The company has recently executed deals to gain majority stakes in multiple electrical engineering firms, showcasing its commitment to growth and diversification.

Acquisition of Sukrut Electrical Pvt Ltd

Quality Power Electrical Equipments has acquired a 51% ownership stake in Sukrut Electrical Pvt Ltd, securing majority control of the electrical services firm. This move is expected to strengthen the company's position in the electrical engineering sector and potentially expand its service offerings.

Acquisition of Meharu Electrical & Mechanical Engineers

The company has also acquired a 51% ownership stake in Meharu Electrical & Mechanical Engineers, securing majority control of the electrical and mechanical engineering firm. This acquisition is expected to further bolster Quality Power Electrical Equipments' capabilities in the electrical engineering sector.

Acquisition of Sukrut Electric Company Private Limited

In addition to the above acquisitions, Quality Power Electrical Equipments has entered into a Share Purchase Agreement to acquire a 50% stake in Sukrut Electric Company Private Limited. This acquisition, previously a joint venture with Yash Highvoltage Limited, further solidifies the company's presence in the electrical equipment manufacturing industry.

Details of the Sukrut Electric Acquisition

The following table provides key details of the Sukrut Electric Company Private Limited acquisition:

Strategic Implications

These acquisitions align with Quality Power Electrical Equipments' core business of electrical equipment manufacturing. By acquiring majority stakes in multiple electrical engineering firms, the company is poised to:

1. Expand its product portfolio and service offerings
2. Strengthen its market position in the electrical engineering sector
3. Potentially realize synergies in manufacturing and distribution
4. Enhance its competitive edge in the rapidly evolving electrical equipment industry

As the electrical equipment sector continues to grow, driven by increasing electrification and technological advancements, these strategic moves position Quality Power Electrical Equipments to capitalize on emerging opportunities and drive long-term growth.

Investors and industry observers will be keenly watching how the company integrates these acquisitions into its existing operations and leverages them for future expansion and value creation.