Quality Power order book reaches Rs 2,010 crore in second quarter

Quality Power’s consolidated order book reached Rs 2,010 crore in the second quarter of fiscal year 2027, or Q2 FY27, up Rs 1,260 crore from Rs 750 crore in Q4 FY25. Endoks and Mehru reported Rs 800 crore and Rs 610 crore, respectively, representing combined disclosed shares of 69.8% of the Q2 FY27 backlog.

How quickly has Quality Power’s order book grown?

Quality Power’s order book rose by Rs 1,260 crore, from Rs 750 crore in Q4 FY25 to Rs 2,010 crore in Q2 FY27. The Q2 FY27 balance was about 2.7 times the Q4 FY25 level across the six quarter-on-quarter movements in the disclosed series.

The increase was uneven. The order book added Rs 25 crore in Q1 FY26, Rs 55 crore in Q2 FY26 and Rs 65 crore in Q3 FY26, before rising by Rs 511 crore in Q4 FY26 and Rs 540 crore in Q1 FY27. It then increased by Rs 64 crore in Q2 FY27.

Quality Power first exceeded Rs 1,000 crore in the disclosed sequence in Q4 FY26, when the balance reached Rs 1,406 crore from Rs 895 crore in Q3 FY26. It then exceeded Rs 1,900 crore in Q1 FY27 at Rs 1,946 crore, with Q2 FY27 standing Rs 64 crore above that level.

Which quarters drove Quality Power’s backlog expansion?

Q1 FY27 generated the largest quarter-on-quarter order-book increase in Quality Power’s disclosed series, at Rs 540 crore. Q4 FY26 was next at Rs 511 crore, so those two quarters supplied Rs 1,051 crore of the Rs 1,260 crore increase from Q4 FY25 to Q2 FY27.

The earlier FY26 progression was more gradual. The backlog rose by a cumulative Rs 145 crore over Q1 FY26 through Q3 FY26, moving from Rs 750 crore to Rs 895 crore. By comparison, the increase from Q3 FY26 to Q2 FY27 was Rs 1,115 crore.

The Rs 64 crore addition in Q2 FY27 was smaller than the preceding Rs 540 crore and Rs 511 crore increases, but it took the reported balance to its highest point in the series. The presentation provides no order-inflow, execution or cancellation figures to explain the movement between Q1 FY27 and Q2 FY27.

Which entities make up Quality Power’s Q2 FY27 order book?

Endoks was the largest reported Q2 FY27 contributor, with an order book of Rs 800 crore and a 39.6% share. Mehru followed with Rs 610 crore and 30.2%, while QP Standalone reported Rs 600 crore and 29.8%; Others reported Rs 5 crore and 0.3%.

Endoks and Mehru together reported Rs 1,410 crore of orders and combined shares of 69.8%. The two reported amounts are Rs 10 crore above the Rs 600 crore figure for QP Standalone, despite the close reported shares of Mehru at 30.2% and QP Standalone at 29.8%.

The entity amounts shown total Rs 2,015 crore, while Quality Power reported a consolidated Q2 FY27 order book of Rs 2,010 crore. The presentation does not explain that Rs 5 crore difference. Its Q2 FY27 entity contribution data, labelled approximate, shows Endoks at 41% of total income and Mehru at 33%, compared with Quality Power at 26%.

What operating plans and financial measures accompany the backlog?

Quality Power identifies Endoks as a 51% holding that supplies power-electronics equipment, including static var compensators, static synchronous compensators, active harmonic filters, battery energy storage system power-conversion systems, and supervisory control and data acquisition systems. Endoks operates from Ankara and Niğde in Turkey, while Mehru, also a 51% holding, produces instrument transformers up to 500 kilovolts from Bhiwadi in the Delhi National Capital Region.

Management says a new Endoks manufacturing facility is under construction in Turkey to establish instrument-transformer capability near European customers. The planned facility is intended to manufacture power-conversion systems for battery energy storage systems and other power-electronics converters, with approximately 4 gigawatts of capacity; management says it has already secured close to 1 gigawatt of orders. The presentation gives no completion or commissioning date.

Quality Power reported Rs 40 crore of total borrowings in H1 FY27, comprising Rs 17 crore of long-term borrowings and Rs 23 crore of short-term borrowings. Cash and cash equivalents of Rs 100 crore plus other bank balances of Rs 51 crore resulted in reported net cash of Rs 111 crore, compared with Rs 213 crore in FY26. Working-capital turnover was 0.4 times in H1 FY27, versus 0.8 times in FY26 and 1.1 times in FY25; the company states that H1 FY27 ratios use a last-twelve-month basis.

Conclusion

Quality Power’s Q2 FY27 order book of Rs 2,010 crore was Rs 1,260 crore above Q4 FY25, with the largest additions recorded in Q4 FY26 and Q1 FY27. Endoks and Mehru made up 69.8% of the disclosed entity shares, placing most of the reported backlog in those two businesses.

The next disclosed development to watch is the Endoks facility in Turkey. Management’s plan calls for approximately 4 gigawatts of capacity and cites close to 1 gigawatt of secured orders, but the presentation leaves the construction completion and capacity-commissioning timetable unresolved.