Quality Power Electrical Equipments Posts Strong Q1 FY27 Results; Consolidated Net Profit Rises to ₹505.51 Million

Quality Power Electrical Equipments Limited has reported a strong financial performance for the first quarter ended June 30, 2026, delivering robust year-on-year growth across its standalone and consolidated operations.

Standalone Financial Highlights

For Q1 FY27 (quarter ended June 30, 2026), the company recorded standalone revenue from operations of ₹654.78 million, up from ₹405.22 million reported in the corresponding quarter of the previous year (Q1 FY26), though lower than ₹708.86 million recorded in the preceding quarter ended March 31, 2026. Standalone other income stood at ₹38.37 million, bringing total standalone income for the quarter to ₹693.15 million compared to ₹418.39 million in Q1 FY26 and ₹719.39 million in Q4 FY26.

Total expenses for the quarter came in at ₹359.53 million, down from ₹506.27 million in Q4 FY26 but higher than ₹277.68 million in Q1 FY26. Cost of materials consumed remained the primary expense driver at ₹231.47 million, while employee benefits expense accounted for ₹80.78 million, finance costs stood at ₹1.75 million, and depreciation and amortization totaled ₹8.47 million.

Standalone profit before tax reached ₹333.62 million, marking a substantial increase compared to ₹140.71 million in Q1 FY26 and ₹213.11 million in Q4 FY26. After accounting for total tax expenses of ₹87.97 million (comprising current tax of ₹82.20 million and deferred tax of ₹5.77 million), standalone net profit for the quarter stood at ₹245.65 million, up from ₹108.67 million in the year-ago period and ₹164.53 million in the preceding quarter.

Standalone basic and diluted earnings per share (EPS) for the quarter rose to ₹3.17 per share (face value ₹10), compared to ₹1.40 in Q1 FY26 and ₹2.13 in Q4 FY26, based on 7,74,44,100 shares.

Consolidated Financial Highlights

On a consolidated basis, total income for Q1 FY27 scaled to ₹3,097.78 million, driven by revenue from operations of ₹2,326.65 million and other income of ₹237.14 million. This compares to total consolidated income of ₹1,940.76 million in Q1 FY26 and ₹2,563.79 million in Q4 FY26.

Total consolidated expenses for the quarter ended June 30, 2026, stood at ₹2,563.04 million. Major cost components included cost of materials consumed at ₹1,230.66 million, purchase of traded goods at ₹263.36 million, employee benefits expense at ₹274.78 million, and other expenses of ₹288.66 million. Finance costs and depreciation expenses were recorded at ₹13.90 million and ₹38.87 million, respectively.

Consolidated profit before tax (before exceptional items) stood at ₹594.22 million compared to ₹442.85 million in Q1 FY26 and ₹534.75 million in Q4 FY26. Total tax expense for the quarter was ₹137.94 million (net of current tax of ₹123.05 million and deferred tax adjustments), and the company recorded a ₹10.96 million share of profit from associates.

Consolidated net profit for Q1 FY27 reached ₹505.51 million, reflecting significant growth over ₹370.64 million in Q1 FY26 and ₹467.24 million in Q4 FY26. Profit attributable to owners of the holding company stood at ₹361.13 million, while non-controlling interest accounted for ₹106.11 million.

Total comprehensive income for the quarter on a consolidated basis stood at ₹590.83 million after factoring in total other comprehensive income of ₹16.16 million (net of tax), which included foreign currency conversion adjustments of ₹28.25 million.

Consolidated basic and diluted EPS for the quarter improved to ₹4.66 per equity share, up from ₹3.12 in the corresponding quarter of the previous year and ₹4.38 in the sequential quarter ended March 31, 2026. The paid-up share capital remained constant at ₹774.44 million across all reported periods.

Mr. P. T. Pandyan, Chairman and Managing Director, said: "We have started FY2027 on a positive note, with consolidated revenue increasing 32.1 percent year on year to ₹2,564 million. Adjusted for the non cash net monetary loss arising under Ind AS 29 at our Turkish operations, EBITDA grew 49.8 percent to ₹725 million at a margin of 28.3 percent, and profit after tax grew 46.9 percent to ₹545 million at a margin of 21.3 percent. On a reported basis, EBITDA stood at ₹647 million and profit after tax at ₹467 million. The quarter reflects continued execution momentum and sustained demand for high voltage and energy transition solutions.

During the quarter we continued to strengthen our presence across key international and domestic markets. We secured a significant order for the supply of high voltage reactors for a data centre project in the United States, reinforcing the emerging opportunity arising from the power requirements of hyperscale and artificial intelligence led data centre infrastructure. We also secured a FACTS system and equipment order in Japan, further strengthening our presence in advanced grid stability applications. In India, our material subsidiary Mehru received multiple orders for 400 kV instrument transformers from Hitachi Energy India Limited, reflecting continued demand for high voltage grid equipment.

The convergence of digital infrastructure and power infrastructure is creating new requirements for reliable grid connectivity, power quality and high voltage equipment. Data centres, renewable integration and transmission network expansion are together driving investment in grid infrastructure and related technologies. We believe our capabilities across reactors, FACTS, instrument transformers and other high voltage equipment provide a strong platform to participate in these evolving requirements.

We are also continuing to expand our addressable market through targeted acquisitions. The proposed acquisition of Winwin Speciality Insulators Limited would add ceramic insulator manufacturing capability up to 1,200 kV and polymeric insulators up to 400 kV, along with the established WS Insulators brand, manufacturing infrastructure and customer qualification base built over more than six decades. We see this as an important step towards broadening our high voltage product portfolio and strengthening our ability to serve global utilities, original equipment manufacturers and engineering contractors with a wider range of critical equipment.

Our approach to expansion remains focused on building complementary capabilities across the high voltage value chain. Alongside manufacturing expansion we continue to invest in technology, engineering, testing infrastructure and greater integration of critical manufacturing processes. These initiatives are aimed at strengthening execution capability, improving supply chain resilience and enabling participation in increasingly complex and high engineering content projects.

Looking ahead, we remain positive on the structural demand environment for grid modernisation, renewable integration, high voltage transmission and emerging power intensive applications. At the same time we remain focused on execution, capacity creation and supply chain management. Our priority remains to build Quality Power as a technology driven, globally relevant high voltage equipment company, with deeper engineering capability, a broader product portfolio and a stronger presence across the evolving power infrastructure landscape."

Shares of Quality Power Electrical Equipments Limited was last trading in BSE at Rs. 1122.30 as compared to the previous close of Rs. 1157.35. The total number of shares traded during the day was 6732 in over 596 trades.

The stock hit an intraday high of Rs. 1164.00 and intraday low of 1108.00. The net turnover during the day was Rs. 7609234.00.

Source : Equity Bulls

Keywords

QualityPowerElectricalEquipments INE0SII01026 HeavyElectricalEquipment Q1FY27 Q1FY2027 ResultUpdate