Quality Power Electrical Equipments Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Quality Power Electrical Equipments Ltd trades at ₹1,427, in a confirmed uptrend and 30 weeks into that stage. That is +32.7% against its own 200-day average. It sits at 92% of a 52-week range of ₹598 to ₹1,495. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 5 straight weeks.

Today the stock is in a confirmed uptrend — week 30 of stage 2, confirmed. At ₹1,427 it trades +32.7% versus its 200-day average and sits at 92% of its 52-week range (₹598–₹1,495).

Against the market, two honest reads. Cumulative: over the last 1.5 years the stock moved +278% while the NIFTY 500 moved +13% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 5 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Quality Power Electrical Equipments Ltd's story is not scored yet against the markers our research file set on 22 August 2026. Where it sits in its own cycle: EXPANSION. Still open: Cancellation or material qualification rejection of Sangli facility trial production and failure to scale Endoks power conversion systems beyond 10% operating margins.

Our read, 22 August 2026. Quality Power Electrical is scaling from a domestic instrument specialist into a global high-voltage and energy storage platform, converting an order book of 1,945 crore through major capacity additions across Sangli and Turkey.

From the numbers. The stock trades at a price-to-earnings multiple of 72.6x (week date 2026-08-22), which is at 0.98x of its historical median value (73.85x) and places it in the 29th percentile of its trading range. Despite an absolute…

From the price. Price stage 2, week 30 — above its 200-day line, relative strength rising.

From the research. Quality Power Electrical is scaling from a domestic instrument specialist into a global high-voltage and energy storage platform, converting an order book of 1,945 crore through major capacity additions across Sangli…

🚨 Where they disagree. The stock trades at a price-to-earnings multiple of 72.6x (week date 2026-08-22), which is at 0.98x of its historical median value (73.85x) and places it in the 29th percentile of its trading range. Despite an absolute PE ratio of 75.8x, the multiple has compressed while trailing earnings expanded 96% YoY, driven by subsidiary consolidation and order backlog conversion.

What is proven. Quality Power Electrical is scaling from a domestic instrument specialist into a global high-voltage and energy storage platform, converting an order book of 1,945 crore through major capacity additions across Sangli and Turkey.

What is not proven yet. Cancellation or material qualification rejection of Sangli facility trial production and failure to scale Endoks power conversion systems beyond 10% operating margins.

🚨 What would change our mind. Cancellation or material qualification rejection of Sangli facility trial production and failure to scale Endoks power conversion systems beyond 10% operating margins.

Layer 1 read, 22 August 2026 — KEEP. Real HVDC order book and a plant just starting up — but 40% of the profit is interest on IPO cash, at 76x earnings. Quality Power has a genuine, nameable growth runway: an order book of Rs 1,945 crore, about 1.9 times last year sales, and the Sangli plant now in trial production with peak capacity worth Rs 1,500-1,800 crore of revenue. The problem is what sits inside the reported profit — in the June 2026 quarter, Rs 24 crore of the Rs 59 crore pre-tax profit was other income, not operating profit, and the quarter before it was Rs 29 crore of Rs 53 crore; the operating business alone earned about Rs 41 crore. Management has guided only 20% revenue growth for the current year, with the 50% jump promised for the year after and dependent on the new plants qualifying with customers, so at 75.8 times earnings…

What would change Layer 1’s mind. Two specific observations flip this. Upward to P1: two consecutive quarters where operating profit alone carries pre-tax profit — other income back below 20% of PBT while Sangli bills commercial revenue in Q3 FY27, proving the earnings are the business and not the cash pile. Downward to DROP: no commercial billing from Sangli in the Q3 FY27 result (the timeline own watch signal on risk R3) combined with core operating margin under 15% for two straight quarters, which would mean the capacity…

Layer 2 read, 22 August 2026 — BENCH. Demand is real, but the stock is extended just as industry capacity and ownership crowd in. External evidence confirms sector demand: the tri-stream reads strong tailwind and order-to-billing expansion, matching the verified company order book. But the stock is extended at operating-cycle PEAK while Stream F is LATE_CYCLE_FLOOD[sector_capital_flows: Electrical Equipments/HVDC]. Sector social is broad rather than HVDC-specific, so it cannot override the timing risk.

What would change Layer 2’s mind. Advance if Sangli prints commercial billing in Q3 FY27, core operating profit carries the earnings without large other income, and sector capacity is absorbed without margin rollover; DROP only if approvals fail or Sangli billing is absent.

The test written in advance. Cancellation or material qualification rejection of Sangli facility trial production and failure to scale Endoks power conversion systems beyond 10% operating margins. — the thesis as written as stated by the next result.

What the company does. Consolidated order book expanded to 1,945 crore (1.9x annual revenue), anchored by high-voltage coil reactors, Mehru instrument transformers, and Endoks energy storage systems. The upcoming Sangli facility adds 1,500-1,800 crore peak revenue potential, while backward integration into magnet wire and insulators protects gross margins above 43%. Execution risks center on customer qualification timelines, working capital absorption (three-year operating cash flow to profit after tax at 0.57x), and pending fundraising of up to 500 crore for acquisitions.

🚨 What the surface reading misses. The surface reading is: Jun 2026 was a profitable quarter, with 18% operating margin and 47 crore of net profit. The research reads it further: In Jun 2026 (Q1 FY27), reported revenue was 233 crore, operating profit was 41 crore (18% OPM), and net profit was 47 crore.

🚨 What the surface reading misses. The surface reading is: Over the five-year period, working capital and capex absorbed more cash than operations generated, while borrowings increased. The research reads it further: The negative 95 crore FCF shows that cash generation did not fully fund the combined working-capital and capex requirement, leaving a 28 crore increase in borrowings.

Lever 12 · New product launch — BUILDING. Endoks is scaling utility-scale power conversion systems with an order pipeline of 60 million dollars plus an additional 40 million dollars. What proves it keeps working: Endoks Energy Storage and Power Conversion Systems. It stops working if Global IGBT semiconductor shortages prevent PCS converter assembly or pricing pressure limits converter margins below 10%.

Sources: our stock research file (22 August 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Quality Power Electrical Equipments Ltd reported ₹233 Cr of revenue in the Jun 26 quarter, +31.6% year on year. That is the 6th straight quarter of year-on-year growth. Over 4 years it has compounded at 50.8% a year. The last full year, FY26, came in at ₹947 Cr. The last four reported quarters add to ₹1,004 Cr.

Why this happened. Endoks provides energy management software and power conversion systems for battery storage. Civil construction at the Nigde Turkey facility is complete, with operations starting in Q3 FY27 to address European and domestic demand where non-Chinese software is required.

FY26 revenue came in at ₹947 Cr (+181.0% on the year), capping 4 years at 50.8% compound. The latest quarter (Jun 26) printed ₹233 Cr, +31.6% year on year — the 6th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +150.0% growth against the decade's 50.8% — the current year is running faster than its own long-run rate.

FY26-Q4. revenue ₹281 Cr and profit ₹51 Cr as reported.

FY27-Q1. revenue ₹233 Cr and profit ₹47 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Quality Power Electrical Equipments Ltd's operating margin is 18.0% in the Jun 26 quarter, +0.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 5 fiscal years the operating margin has ranged 13.0% to 19.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 18.0%, +0.0 pp against the same quarter a year ago. Across 5 fiscal years the operating margin has ranged 13.0%–19.0%, and FY26's 19.0% is the top of that band — a record year.

Why the margin moved: operating margin went +0.1 pp year on year while gross margin went +2.7 pp — the gain came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

FY26-Q4. revenue ₹281 Cr and profit ₹51 Cr as reported.

FY27-Q1. revenue ₹233 Cr and profit ₹47 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Quality Power Electrical Equipments Ltd earned ₹47.0 Cr of net profit in the Jun 26 quarter, +27.0% year on year. It is the 7th consecutive quarter of growth. Full-year FY26 profit was ₹186 Cr. The 4-year compound rate is 45.1%. That is 20.2% of the quarter's revenue. The same quarter a year earlier earned ₹37.0 Cr.

Jun 26 profit was ₹47.0 Cr, +27.0% year on year — the 7th consecutive quarter of growth. On the full year, FY26 printed ₹186 Cr (+86.0%), and the 4-year compound rate is 45.1%.

Why profit moved: revenue contributed +31.6% and the margin +0.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +120.3% vs revenue +150.0%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

FY26-Q4. revenue ₹281 Cr and profit ₹51 Cr as reported.

FY27-Q1. revenue ₹233 Cr and profit ₹47 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 57% of Quality Power Electrical Equipments Ltd's reported profit arrived as operating cash — a gap worth watching. In FY26 that was ₹80.0 Cr of operating cash against ₹186 Cr of profit. After ₹113 Cr of capital spending, ₹−33.0 Cr was left as free cash.

FY26: operating cash of ₹80.0 Cr against reported profit of ₹186 Cr, leaving free cash of ₹−33.0 Cr after ₹113 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 57% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

🚨 Why conversion sits at 57%: the cash cycle tightened 91 days between FY22 and FY26 — cash that used to wait in the cycle now reaches the bank sooner. Less than 70% of profit arriving as cash is the thing to watch on this page.

Router verdict: the bigger cash user is investment — capital spending ran 15.2× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Quality Power Electrical Equipments Ltd's cash conversion cycle runs 63 days in FY26, down from 154 days in FY22. Capital spending ran ₹320 Cr over the last 3 years. At FY26 sales of ₹947 Cr each day of that cycle holds about ₹2.6 Cr, so roughly ₹163 Cr sits inside the business at any moment.

Why this happened. The Sangli plant represents a major scale expansion for high-voltage reactors and coils. With trial production commencing in Q2 FY27 and initial revenue expected in Q3 FY27, the facility unlocks execution against the 553 crore standalone order backlog.

FY26: debtors at 93 days, inventory at 74 days — roughly 2.4 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 63 days, tighter than FY22's 154.

The full loop: cash goes out to suppliers and production on day 0; stock waits 74 days to sell; customers pay about 93 days after that; and suppliers themselves are paid at 105 days — netting out to the 63-day cycle.

In money terms: at FY26 sales of ₹947 Cr, each day of the cycle holds about ₹2.6 Cr — so the 63-day loop keeps roughly ₹163 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹320 Cr over the last 3 fiscal years against ₹21.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹73.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Quality Power Electrical Equipments Ltd earns a ROCE of 32% in FY26. That is up from a trough of 27% in FY25. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 19.6% net margin on 0.85× asset turns.

FY26 ROCE is 32%, recovered from a FY25 trough of 27% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 19.6% net margin × 0.85× asset turns × 2.05× balance-sheet leverage ≈ 34.2% on equity. Margin is doing the heavy lifting; leverage is a meaningful part of the equation.

The quarterly return curves and the return-on-invested-capital overlay, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 37% on reported income across 10 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Quality Power Electrical Equipments Ltd carries ₹40.0 Cr of borrowings against ₹542 Cr of equity in FY26, a debt-to-equity of 0.07. Operating profit covers the interest bill 25×. Over 4 years borrowings went from ₹12.0 Cr to ₹40.0 Cr. Capital spending ran ₹320 Cr across the last 3 of those years.

FY26: borrowings of ₹40.0 Cr against equity of ₹542 Cr — a debt-to-equity of 0.07. Operating profit covers the interest bill 25×. Over 4 years borrowings went from ₹12.0 Cr to ₹40.0 Cr while capital spending ran ₹320 Cr in just the last 3 — part of the build-out is riding on borrowed money.

The total-debt and debt-to-equity series, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 37% on reported income across 10 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Domestic institutions cut 2.3 points of Quality Power Electrical Equipments Ltd over 5 quarters, the biggest move on the register. That takes domestic institutions to 6.5% of the company. Foreign institutions moved −0.6 points over the same window, to 3.4%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: −2.3 points over 5 quarters to 6.5%; Foreign institutions: −0.6 points over 5 quarters to 3.4%; Promoters: +0.0 points over 5 quarters to 73.9%.

🚨 Why the register moved: domestic institutions drove it (−2.3 points), alongside foreign institutions (−0.6 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Quality Power Electrical Equipments Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Quality Power Electrical Equipments Ltd trades at 82.9× P/E, mid-range by its own standards (60th percentile). Its long-run median P/E is 74.2×, measured across 1.5 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 82.9× is mid-range by its own standards (60th percentile), against a long-run median of 74.2× measured over 1.5 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +83.5% against a +51.0% price move — earnings outran the price, pushing the multiple DOWN its own range.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

A quarterly PEG curve, which only the second data source carries, is not drawn on this page: its two data sources disagree by up to 37% on reported income across 10 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 26 August 2026 price, Quality Power Electrical Equipments Ltd was paying for profit growth of about 26.3% a year. Profit itself has compounded 45.1% a year over the past 4 years. Today the market pays 82.9× P/E, the 60th percentile of its own 2-year range.

What the two numbers say together. The multiple is unremarkable against its own past, and the growth the price is paying for is below what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 26 August 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Quality Power Electrical Equipments Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 7 quarters across 1 curve, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

4-Factor Sector Score

70.3/100 — rank 1 of 6 in Electrical Equipments/HVDC · 71% evidence confidence

Quality Power Electrical Equipments Ltd scores 70.3 out of 100 against the 6 companies it is compared with in Electrical Equipments/HVDC, ranking 1. Confirmed research leader: earnings, capital efficiency and relative strength agree. Move to management, catalyst and risk diligence.

The four contributions add to the total exactly: 25.3 + 17.4 + 9.7 + 17.9 = 70.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Said versus delivered

What Quality Power Electrical Equipments Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

Endoks PCS facility timeline changed materially · 10 August 2026. In May 2026, management targeted the new Endoks PCS facility at Nigde for December 2026. In August 2026, management said operations were expected to begin during Q3 this year, a material pull-forward in the stated timeline that was not explicitly reconciled with the prior target.

Fundraising shifted from contingent authorization to near-term execution · 10 August 2026. In May 2026, management characterized the fundraising as long-term capital that would be called only as required and not necessarily immediately. In August 2026, management said it may attempt to raise the funds during the current month and identified the Win-Win acquisition, related capex, and US expansion as specific uses; while these uses provide context, management did not explain the sharp change in timing from optional capital to an imminent raise.

Revenue Guidance Revision to 900 Crore Absent from Prior Earnings Calls · 14 May 2026. Both the Nov 2025 and Feb 2026 calls maintained a 700-800 crore FY26 revenue guidance, with the Feb 2026 call making no upward revision despite 9-month revenue already tracking at approximately 697 crore and Q3 alone delivering 284 crore, a run rate that made exceeding 800 crore near-certain. The May 2026 call includes a CFO assertion that guidance was revised upward to 900 crore during FY26, yet no such revision was communicated in either prior earnings call, raising a material question about when and through what channel investors were formally informed of this claimed guidance update before the close of the financial year.

🚨 Sangli Factory Timeline Slips After Explicit Ahead-of-Schedule Declaration in Feb 2026 · 14 May 2026. Both the Nov 2025 and Feb 2026 calls guided to June 2026 as the Sangli factory operational start, with the Feb 2026 call explicitly stating the construction timeline had been advanced and was ahead of earlier schedule. The May 2026 call revises this to late July or August for trial production only, with commercial production deferred to end of calendar year 2026, providing no explanation for what changed between the Feb 2026 ahead-of-schedule assertion and the current delay, directly affecting FY27 revenue contribution timing assumptions built on prior guidance for this flagship capacity expansion.

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions