Quality Power: Powering Ahead with Record Q2 & H1 FY26 Performance

Quality Power Electrical Equipments Limited, a pivotal player in India's energy transition sector, has reported an exceptional financial performance for the second quarter and first half of the financial year 2026. The company, known for its high-voltage electrical equipment and advanced power quality solutions, has achieved its highest-ever quarterly total revenues and EBITDA, signaling robust growth and strategic execution. This strong showing underscores Quality Power's ability to capitalize on the burgeoning global demand for energy infrastructure amidst a dynamic market.

For Q2 FY26, Quality Power recorded consolidated total revenues of INR 218.9 crores, marking a significant 112.4% year-on-year growth. This impressive top-line expansion was complemented by strong profitability, with consolidated EBITDA reaching INR 49.4 crores, an increase of 193.4% YoY, resulting in healthy EBITDA margins of 22.5%. The Profit Before Tax (PBT) stood at INR 44.3 crores, and Profit After Tax (PAT) at INR 35.2 crores, reflecting consistent profitability. For the first half of FY26, the company's revenue soared to INR 413 crores, a 126% YoY increase, with EBITDA at INR 97.7 crores, up 67% YoY. Notably, the company has already exceeded its previous year's total revenue within the first six months of FY26, demonstrating accelerated growth.

Segmental Performance and Strategic Initiatives

The growth during the quarter was broad-based, with significant contributions from FACTS, HVDC, and high-voltage power quality segments, driven by strong international demand and disciplined execution. The company's subsidiaries, Mehru and Endoks, played a crucial role in this performance. Mehru, specializing in high-voltage instrument transformers, contributed INR 78 crores to Q2 revenue, while Endoks, focused on power electronics and power quality systems, added INR 73 crores. The remaining revenue came from Quality Power's other product lines, including coil products and transformers.

Quality Power is not just focusing on organic growth but also on strategic initiatives to enhance its market position and technological capabilities. A landmark co-development partnership between its subsidiary Mehru Electrical & Mechanical Engineers Pvt Ltd. and Hyosung T&D India Ltd. for Gas-Insulated Switchgear (GIS) instrument transformers is a key highlight. This collaboration positions Mehru at the forefront of the fast-growing GIS market, opening opportunities in metro rail, offshore wind, and urban transmission systems, with the first set of transformers expected to be commercialized within 12 months.

Financial Summary (Consolidated - INR Crores)

Segmental Revenue Contribution (Q2 FY26 - INR Crores)

Capacity Expansion and Market Outlook

To meet the escalating demand, Quality Power is undertaking significant capacity expansions. The Global Coil Factory at Kupwad MIDC, Sangli, is ahead of schedule, targeting commissioning before June 2026. The Cochin expansion is set to go live in December 2025, doubling dry-type coil capacity. Mehru's Bhiwadi plant is also undergoing phased upgrades, aiming for a 45% capacity increase by April 2026. Additionally, a new magnet-wire manufacturing line is being implemented as part of a backward-integration initiative, expected to be operational by Q3 FY26, enhancing supply-chain security and reducing lead times.

The company's order book stands strong at INR 830 crores, providing clear revenue visibility and reinforcing its leadership in the energy transmission sector. Management maintains its full-year FY26 revenue guidance of INR 700-800 crores with approximately 20% margins. The global electricity transmission sector is projected to grow at a CAGR of 6%, reaching USD 143.47 billion by 2028, driven by renewable energy integration, grid modernization, and urban infrastructure expansion. Quality Power is well-positioned to leverage these tailwinds, with a focus on building technology depth and integrating digital intelligence into every product.

Navigating Challenges and Future Focus

Despite the robust performance, the company acknowledges operating in an environment marked by supply chain constraints, including delays in critical inputs like HVDC magnet wires due to new BIS license requirements and tight global supply of insulators. Geopolitical sensitivities also pose challenges to global component availability. However, management's agility and commitment have ensured customer deliveries and project continuity. The company is also mindful of competition from Chinese players, who often prioritize volume over profit, and is strategically expanding capacity and integrating backward to become more cost-competitive.

Quality Power's near-term strategic priorities include scaling manufacturing for HVDC and FACTS components, expanding offerings within the GIS ecosystem, deepening backward integration of critical materials, pursuing inorganic opportunities in high-voltage and power-electronics domains, and strengthening collaborative technology partnerships with global OEMs and utilities. The company's disciplined approach to capital allocation, strong balance sheet, and focus on operational excellence are expected to drive sustained growth and value creation in the coming years.