This small-cap Transformer stock, which engages in manufacturing, designing, and supplying high-quality electrical equipment, including transformers, switchgear, and power solutions for industrial applications, is in focus after management expects 152 percent revenue growth in FY26.
With a market capitalization of Rs. 4,823.61 crores, the share of Quality Power Electrical Equipments Limited has reached an intraday high of Rs. 631.55 per equity share, rising nearly 3.36 percent from its previous day’s close price of Rs. 611. Since then, the stock has retreated and is currently trading at Rs. 622.85 per equity share.
Guidance: Quality Power Electrical Equipments Limited has shared a strong growth outlook. For FY26, the company is targeting revenue between Rs. 700 crore and Rs. 850 crore, which represents a growth of approximately 152 percent over its FY25 revenue of Rs. 337 crore.
Over the next four years, management expects total revenue to reach Rs. 2,000 crore, which is almost 493.47 percent growth compared to FY25 revenue. On the profitability side, the company aims to maintain blended margins of 16 to 18 percent, with a goal to increase margins up to 20 percent, driven by improved performance in its Mehru division.
Order Book
As of Q4 FY25, Quality Power Electrical Equipments Limited has a consolidated order backlog of approximately Rs. 750 crore. Mehru, the company’s subsidiary, holds a standalone order book exceeding Rs. 350 crore.
The company also has a strong bid pipeline, with over Rs. 1,000 crore in bids under Quality Power and more than Rs. 400 crore under Mehru. The current order book is expected to be executed over the next 15 months, ensuring steady revenue visibility.
Expansion
Quality Power Electrical Equipments Limited has expanded its global reach by onboarding new customers and utilities in several countries. These include Sweden, Finland, Iraq, Romania, Italy, Brazil, South Korea, Hong Kong, Australia, and various regions in the Middle East.
Quality Power Electrical Equipments Limited was founded in 2001 and is headquartered in Sangli, Maharashtra. It is an Indian company specializing in high-voltage electrical equipment and solutions, with a strong focus on supporting the global energy transition and grid modernization. The company has grown into a technology-driven leader in power products and systems, serving clients in over 95 countries.
The company works with major clients like GE Vernova, Siemens, ABB, Reliance, PowerGrid, KEC, Toshiba, Tata, and Adani to support the energy transition. It also partners with global names like Hyundai, Saudi Aramco, and Vedanta to provide smart and sustainable solutions for the power sector.
Coming into financial highlights, Quality Power Electrical Equipments Limited’s revenue has increased from Rs. 39 crore in Q4 FY24 to Rs. 108 crore in Q4 FY25, which has grown by 176.92 percent. The net profit has also grown by 66.67 percent, from Rs. 18 crore in Q4 FY24 to Rs. 30 crore in Q4 FY25.
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 28 percent and 23.2 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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