This small-cap transformer stock, engaged in designing and manufacturing high-voltage electrical equipment and solutions for power generation, transmission, distribution, and automation sectors, is in focus after the management expected 137 percent revenue growth guidance for FY26.

With a market capitalization of Rs. 7,040.83 crore, the shares of Quality Power Electrical Equipments Limited were currently trading at Rs. 909.15 per equity share, rising nearly 5.61 percent from its previous day’s close price of Rs. 860.85. 

Management Guidance

Quality Power Electrical Equipments Limited has guided for FY26 consolidated revenue of  Rs. 700–800 crores (excluding Sukrut). This is more than 137 percent growth compared to FY25 revenue of Rs. 338 crores. The company has also guided for EBITDA margins in the range of 17–20 percent, reflecting strong operating performance.

Order Book

The company has a total order book of Rs. 775 crores as of Q1 FY26. Out of this, about Rs. 350 crores comes from Mehru, around Rs. 250 crores from Quality Power, and the balance from Endoks. Most of these orders will be completed in the next 12–15 months. 

Looking ahead, management expects to add another Rs. 500 crores of orders by the end of this year. Currently, about 60 percent of the orders are exports, and 40 percent are from the domestic market.

Client Base

Quality Power Electrical Equipments Limited has built a strong client base, partnering with leading global and domestic companies such as GE, Siemens, ABB, Hyundai, Reliance, Tata, Adani, Vedanta, Saudi Aramco, and ArcelorMittal. These marquee clients highlight its role in supporting energy transition and large-scale infrastructure projects.

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Company Overview

Quality Power Electrical Equipments Limited was founded in 2001 and is headquartered in Sangli, Maharashtra. The company is a diversified power products 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, supporting both conventional and emerging sectors with reliable solutions.

Quality Power Electrical Equipments Limited operates 7 manufacturing facilities across India and Turkey, employing nearly 1,500 people. With over 200 customers spread across more than 100 countries in 5 continents, Quality Power has built a strong global presence. Its key manufacturing units are located in Sangli, Aluva, Bhiwadi, Ankara, and Pune, ensuring a robust supply chain and international reach.

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 22.69 percent and 33.53 percent, respectively, over the last three years.

In terms of return ratios, the company’s ROCE and ROE stand at 27.6 percent and 22.9 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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