Synopsis:
Mehru Electrical, a Quality Power subsidiary, partners with Hyosung T&D to develop GIS instrument transformers, boosting “Make in India,” reducing imports, and serving global markets.
This small-cap transformer stock, engaged in designing and manufacturing high-voltage electrical equipment and providing solutions for power generation, transmission, distribution, and automation sectors, jumped 8 percent after signing an agreement with Hyosung for GIS instrument transformers.
With a market capitalization of Rs. 7,772.29 crores, the share of Quality Power Electrical Equipments Limited has reached an intraday high of Rs. 1,049 per equity share, rising nearly 7.70 percent from its previous day’s close price of Rs. 974. Since then, the stock has retreated and is currently trading at Rs. 1,003.60 per equity share.
What is the news?
Mehru Electrical and Mechanical Engineers Private Limited, a subsidiary of Quality Power Electrical Equipments Limited, has signed a co-development agreement with Hyosung T&D India Private Limited to make Gas-Insulated Switchgear (GIS) instrument transformers. This partnership will bring advanced global technology to India, support the “Make in India” vision, reduce imports, and create world-class GIS products for both Indian and international markets.
Management Guidance
Quality Power Electrical Equipments Limited has projected its consolidated revenue for FY26 to be between Rs. 700 and 800 crores (excluding Sukrut), marking a growth of over 137 percent compared to FY25 revenue of Rs. 338 crores. The company also expects EBITDA margins of 17–20 percent, indicating robust operating performance.
Order Book
As of Q1 FY26, the company has a total order book of Rs. 775 crores, with around Rs. 350 crores from Mehru, Rs. 250 crores from Quality Power, and the remaining from Endoks. Most of these orders are expected to be completed within the next 12–15 months.
The company’s management also plans to secure an additional Rs. 500 crores in orders by year-end. Currently, about 60% of the orders are exports, while 40% are domestic.
Company Overview
Quality Power Electrical Equipments Limited was founded in 2001 and is based in Sangli, Maharashtra. The company is a diversified company specializing in coil products, transformers, and instrument transformers.
The company serves a wide range of industries, including power utilities, cement, chemicals, oil & gas, renewables, automobiles, and traction & locomotives, providing reliable solutions to both traditional and emerging sectors.
Recent quarter results
Coming into financial highlights, Quality Power Electrical Equipments Limited’s revenue has increased from Rs. 61 crore in Q1 FY25 to Rs. 177 crore in Q1 FY26, which has grown by 190.16 percent. The net profit has also grown by 12.12 percent from Rs. 33 crore in Q1 FY25 to Rs. 37 crore in Q1 FY26.
Quality Power Electrical Equipments Limited’s revenue and net profit have grown at a CAGR of 22.57 percent and 33.53 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE stand at 26.6 percent and 22.1 percent, respectively. Quality Power Electrical Equipments Limited has an earnings per share (EPS) of Rs. 8.54, and its debt-to-equity ratio is 0.02x.
Written By – Nikhil Naik
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