Operating Leverage Inflection
Expected: CurrentHIGH confidence
What: EBITDA Margin: 28%
Impact: 800 bps expansion
“EBITDA margin improved to about 35% supported by better absorption of fixed cost and controlled operating expenses.”
Quality Power Electrical Equipments Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +55.9%Average6w Streak
In , Quality Power Electrical Equipments Ltd (Electrical Equipments/HVDC) is outperforming Nifty 500 with +55.9% relative strength. Fundamentals: Average. On a 6-week streak.
Quality Power Electrical Equipments Ltd Key Facts
- PE Ratio
- 99.9x
- Market Cap
- ₹10,687 Cr
- PAT Growth YoY
- +215%
- Revenue Growth YoY
- +289%
- OPM
- 28.0%
- RS vs Nifty 500
- +55.9%
Emerging Opportunity
What's Happening
⏳Steady earner with flat PE — waiting for re-rate catalyst
📊Debt increased 300% YoY — leverage rising
💰Trading 38% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Operating Leverage Inflection
CurrentHIGH
2. Order Book Or Contract Wins
Q4 FY26HIGH
3. Geographical Expansion
2-3 yearsMEDIUM
Key Risks
1. Soaring copper and aluminum prices impacting input costs
MEDIUM2. Shortage of insulators and long-lead cables
MEDIUM3. Restrictions on Chinese material in Indian markets
LOWSector-Specific Signals
Order Book₹890 Cr
Capacity Utilisation100%0%
Receivable Days45-60 days
Mehru EBITDA Margin16.4%
Key Numbers
PAT Growth YoY
+215%
Stable
Revenue YoY
+289%
Stable
Operating Margin
28.0%
+400 bps YoY
PE Ratio
99.9
Current Price
₹1,380
Dividend Yield
0.07%
Fundamental Score
49/100
Average
3Y PAT CAGR
+34%
Market Cap
9.8K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Quality Power Electrical Equipments Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Order Book Or Contract Wins
Expected: Q4 FY26HIGH confidence
What: Order Book: ₹890+ Cr
Impact: ₹300 Cr potential wins
“our order book has expanded meaningfully. We are currently in advanced discussions for potential orders exceeding INR 300 crores”
Geographical Expansion
Expected: 2-3 yearsMEDIUM confidence
What: Turkey Greenfield Capex: $6 million
Impact: $25-35M revenue potential
“evaluating the establishment of a instrument transformer manufacturing facility in Turkey through our group entities aimed at serving the European markets”
Management Or Ownership Change
Expected: CurrentLOW confidence
What: CEO Elevation: Sanjog Mhatre
“Mr. Sanjog Matre, Chief Business Officer who is now been elevated to Chief Executive Officer”
New Product Or Brand Launch
Expected: FY27MEDIUM confidence
What: GIS Trial Product: June/July 2026
“our first GIS trial product is targeted for market readiness by June or July of 2026 making an important milestone”
Q3 EBITDA Margin of 28%
HIGH confidence
What: Q3 EBITDA Margin of 28%
“EBITDA margin improved to about 35% supported by better absorption of fixed cost and controlled operating expenses.”
EBITDA Margin Floor guidance raised
HIGH confidence
What: 20% → 22%
“I think you can take about 22% as a floor and with an upward bias that we would try to achieve.”
What Are the Key Risks for Quality Power Electrical Equipments Ltd?
Earnings deceleration risks from management commentary
Soaring copper and aluminum prices impacting input costs
MEDIUMTrigger: Global metal price volatility.
Impact: PAT impact: 1-2% on Mehru
Management view: Progressively adjusting prices and limited exposure at Quality Power stage.
Monitor: commodity
Shortage of insulators and long-lead cables
MEDIUMTrigger: Peak cycle in manufacturing across the sector causing supply chain constraints.
Management view: Stockpiling critical raw materials for a couple of months.
Monitor: logistics
Restrictions on Chinese material in Indian markets
LOWTrigger: Regulatory environment in India preventing use of Chinese inputs.
Management view: Focusing on growth in Europe, Australia, and Middle East.
Monitor: geopolitical
What Is Quality Power Electrical Equipments Ltd's Management Saying?
Key quotes from recent conference calls
“we have already guided the market to between INR 700 crores to INR 800 crores in revenue [Previous Revenue guidance]”
“we do not see a problem with the margin guidance of about 20%. [Previous EBITDA Margin guidance]”
“completing the acquisition of 50% stake in Sukrut Electric Company Private Limited... brings in highly complimentary capabilities [Initiative: Sukrut Acquisition]”
“approved an additional investment for setting up a Global Engineering and Technology center at Sangli. [Initiative: Global Engineering and Technology Center]”
What Did Quality Power Electrical Equipments Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹284.3 Cr
YoY +250%QoQ +30%
Why: Growth was aided by scale-up in consolidated operations, robust order execution, and improved capacity utilization across the group.
Consolidated revenue saw a massive jump primarily due to the Turkish operations' financial year-end execution.
EBITDA
₹79.3 Cr
Margin 28%
Why: Margin improvement was supported by operating leverage and disciplined control over fixed costs as revenues scaled.
EBITDA margins expanded sequentially from 22.5% in Q2 to 28% in Q3.
PAT
₹62.8 Cr
QoQ +65%
Why: Profit growth was driven by higher operating profitability and better execution of large value orders in Turkey.
PAT growth outpaced revenue growth due to significant margin expansion.
Other Highlights
• Mehru EBITDA margin reached 16.4% in Q3.
• Standalone EBITDA margin improved to 35%.
• Turkish operations executed multiple large value orders.
What Sector Metrics Matter for Quality Power Electrical Equipments Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Order Book
₹890 Cr
QoQ +₹60 Cr
Why: Meaningful expansion despite record high execution levels.
Capacity Utilisation
100%
YoY 0%QoQ 0%
Why: Capacities are already stretched at all businesses including Mehru and Quality Power.
Receivable Days
45-60 days
Why: Maintained within normal range despite revenue growth.
Mehru EBITDA Margin
16.4%
QoQ +440 bps
Why: Driven by higher capacity utilization and improved product mix.
Export Revenue Potential
95%
Why: High demand from international markets like Europe and US.
Fixed Price Orders
98%
Why: Most orders are fixed price as the company rarely deals directly with government entities.
Inventory as % of Revenue
2-3%
Why: Company follows a just-in-time model, though currently stockpiling critical items.
Mehru Revenue (Q3)
₹83 Cr
QoQ +₹4 Cr
Why: Incremental stock and capacity additions helping volume.
What Is Quality Power Electrical Equipments Ltd's Management Guidance?
Forward-looking targets from management for Medium Term
OPM Guidance
22%
Revenue Outlook
₹1500 Cr
Margin Outlook
Floor raised to 22% with upward bias.
Capex Plan
$6 million
Greenfield facility for Mehru at Turkey
Management Tone: BULLISH
Guidance Changes
RAISED
EBITDA Margin Floor: 20% → 22%
How Fast Is Quality Power Electrical Equipments Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +289% | +23% | Stable |
| PAT (Net Profit) | +215% | +34% | Stable |
| OPM | 28.0% | +400 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Other Top Electrical Equipments/HVDC Stocks Beating Nifty 500
Frequently Asked Questions: Quality Power Electrical Equipments Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Quality Power Electrical Equipments Ltd's latest quarterly results?
Quality Power Electrical Equipments Ltd's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +215.0% (stable)
- Revenue Growth YoY: +289.0%
- Operating Margin: 28.0% (volatile)
Is Quality Power Electrical Equipments Ltd's profit growing or declining?
Quality Power Electrical Equipments Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +215.0% (latest quarter)
- PAT Growth QoQ: +80.0% (sequential)
- 3-Year PAT CAGR: +33.5%
- Trend: Stable — consistent growth pattern
What is Quality Power Electrical Equipments Ltd's revenue growth trend?
Quality Power Electrical Equipments Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +289.0%
- Revenue Growth QoQ: +37.9% (sequential)
- 3-Year Revenue CAGR: +22.6%
How is Quality Power Electrical Equipments Ltd's operating margin trending?
Quality Power Electrical Equipments Ltd's operating margin is volatile.
- Current OPM: 28.0%
- OPM Change YoY: +4.0% basis points
- OPM Change QoQ: +10.0% basis points
What is Quality Power Electrical Equipments Ltd's 3-year profit and revenue CAGR?
Quality Power Electrical Equipments Ltd's long-term compounding rates
- 3-Year Profit CAGR: +33.5%
- 3-Year Revenue CAGR: +22.6%
Is Quality Power Electrical Equipments Ltd's growth accelerating or decelerating?
Quality Power Electrical Equipments Ltd's earnings growth is stable with mixed signals on a sequential basis.
- YoY Acceleration: 0.0% bps
- Sequential Acceleration: +55.4% bps
What is Quality Power Electrical Equipments Ltd's trailing twelve month (TTM) performance?
Quality Power Electrical Equipments Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹165 Cr
- TTM PAT Growth: +96.4% YoY
- TTM Revenue: ₹775 Cr
- TTM Revenue Growth: +100.0% YoY
- TTM Operating Margin: 21.3%
Is Quality Power Electrical Equipments Ltd overvalued or undervalued?
Quality Power Electrical Equipments Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 99.9x
- Price-to-Book: 22.7x
What is Quality Power Electrical Equipments Ltd's current PE ratio?
Quality Power Electrical Equipments Ltd's current PE ratio is 99.9x.
- Current PE: 99.9x
- Market Cap: 10.7K Cr
- Dividend Yield: 0.07%
How does Quality Power Electrical Equipments Ltd's valuation compare to its history?
Quality Power Electrical Equipments Ltd's current PE is 99.9x.
- Current PE: 99.9x
- Valuation Assessment: Significantly Overvalued
What is Quality Power Electrical Equipments Ltd's price-to-book ratio?
Quality Power Electrical Equipments Ltd's price-to-book ratio is 22.7x.
- Price-to-Book (P/B): 22.7x
- Book Value per Share: ₹61
- Current Price: ₹1380
Is Quality Power Electrical Equipments Ltd a fundamentally strong company?
Quality Power Electrical Equipments Ltd is rated Average with a fundamental score of 49/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +289.0% (10% weight)
- PAT Growth YoY: +215.0% (10% weight)
- PAT Growth QoQ: +80.0% (10% weight)
- Margins stable (10% weight)
Is Quality Power Electrical Equipments Ltd debt free?
Quality Power Electrical Equipments Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹36 Cr
What is Quality Power Electrical Equipments Ltd's return on equity (ROE) and ROCE?
Quality Power Electrical Equipments Ltd's return ratios over recent years
- FY2023: ROCE 28.0%
- FY2024: ROCE 31.0%
- FY2025: ROCE 27.0%
Is Quality Power Electrical Equipments Ltd's cash flow positive?
Quality Power Electrical Equipments Ltd's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹62 Cr
- Free Cash Flow (FCF): ₹-38 Cr
- CFO/PAT Ratio: 62% (adequate)
What is Quality Power Electrical Equipments Ltd's dividend yield?
Quality Power Electrical Equipments Ltd's current dividend yield is 0.07%.
- Dividend Yield: 0.07%
- Current Price: ₹1380
Who holds Quality Power Electrical Equipments Ltd shares — promoters, FII, DII?
Quality Power Electrical Equipments Ltd's shareholding pattern (Mar 2026)
- Promoters: 73.9%
- FII (Foreign): 2.3%
- DII (Domestic): 6.0%
- Public: 17.9%
Is promoter holding increasing or decreasing in Quality Power Electrical Equipments Ltd?
Quality Power Electrical Equipments Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 73.9% (Mar 2026)
- Previous Quarter: 73.9% (Dec 2025)
- Change: 0.00% (stable)
How long has Quality Power Electrical Equipments Ltd been outperforming Nifty 500?
Quality Power Electrical Equipments Ltd has been outperforming Nifty 500 for 6 consecutive weeks, indicating building momentum.
Is Quality Power Electrical Equipments Ltd a new momentum entry or an established outperformer?
Quality Power Electrical Equipments Ltd is an established outperformer with 6 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Quality Power Electrical Equipments Ltd?
Quality Power Electrical Equipments Ltd has 7 key growth catalysts identified from recent earnings analysis
- Operating Leverage Inflection — Higher execution and billing led to better absorption of fixed costs.
- Order Book Or Contract Wins — Advanced discussions for potential orders exceeding INR 300 crores.
- Geographical Expansion — Proximity to Europe and lower costs in Turkey compared to India for certain segments.
- Management Or Ownership Change — New leadership structure to drive the next phase of growth.
What are the key risks in Quality Power Electrical Equipments Ltd?
Quality Power Electrical Equipments Ltd has 3 key risks worth monitoring
- [MEDIUM] Soaring copper and aluminum prices impacting input costs — Global metal price volatility.
- [MEDIUM] Shortage of insulators and long-lead cables — Peak cycle in manufacturing across the sector causing supply chain constraints.
- [LOW] Restrictions on Chinese material in Indian markets — Regulatory environment in India preventing use of Chinese inputs.
What did Quality Power Electrical Equipments Ltd's management say in the latest earnings call?
In Q3 FY26, Quality Power Electrical Equipments Ltd's management highlighted
- "we have already guided the market to between INR 700 crores to INR 800 crores in revenue [Previous Revenue guidance]"
- "we do not see a problem with the margin guidance of about 20%. [Previous EBITDA Margin guidance]"
- "completing the acquisition of 50% stake in Sukrut Electric Company Private Limited... brings in highly complimentary capabilities [Initiative: Sukrut..."
What is Quality Power Electrical Equipments Ltd's management guidance for growth?
Quality Power Electrical Equipments Ltd's management has provided the following forward guidance for Medium Term
- Revenue outlook: ₹1500 Cr
- OPM guidance: 22%
- Capex plan: $6 million for Greenfield facility for Mehru at Turkey
- Management tone: bullish
- Milestone: [RAISED] EBITDA Margin Floor: 20% → 22%
What sector-specific metrics matter most for Quality Power Electrical Equipments Ltd?
Quality Power Electrical Equipments Ltd's most important sub-sector-specific KPIs from the latest concall
- Order Book: ₹890 Cr (QoQ +₹60 Cr) — Meaningful expansion despite record high execution levels.
- Capacity Utilisation: 100% (YoY 0%) (QoQ 0%) — Capacities are already stretched at all businesses including Mehru and Quality Power.
- Receivable Days: 45-60 days — Maintained within normal range despite revenue growth.
- Mehru EBITDA Margin: 16.4% (QoQ +440 bps) — Driven by higher capacity utilization and improved product mix.
- Export Revenue Potential: 95% — High demand from international markets like Europe and US.
- Fixed Price Orders: 98% — Most orders are fixed price as the company rarely deals directly with government entities.
Is Quality Power Electrical Equipments Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Quality Power Electrical Equipments Ltd may be worth studying
- Earnings growing at +215.0% YoY
- Cash flow is positive — CFO ₹62 Cr
What is the investment thesis for Quality Power Electrical Equipments Ltd?
Quality Power Electrical Equipments Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +289.0% YoY
- Growth catalyst: Operating Leverage Inflection
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Soaring copper and aluminum prices impacting input costs
What is the future outlook for Quality Power Electrical Equipments Ltd?
Quality Power Electrical Equipments Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Margin Trend: volatile
- Valuation: Significantly Overvalued
- Key Catalyst: Operating Leverage Inflection
- Key Risk: Soaring copper and aluminum prices impacting input costs
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.