Quality Power Q2 EBITDA Margin Expands 610 Basis Points

Oct 31, 2026•3 min read

Quality Power Electrical Equipments Ltd

QPOWER

Ask Iris

Quality Power Electrical Equipments Limited reported Q2 FY2027 earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 28.6%, up 610 basis points from 22.5% a year earlier. Total revenue rose 34.1% to Rs 294 crore, while EBITDA increased 70.3% to Rs 84 crore for the quarter ended 30 September 2026.

How did Quality Power's Q2 FY2027 EBITDA margin change?

Quality Power's Q2 FY2027 EBITDA margin rose to 28.6% from 22.5% in Q2 FY2026, while EBITDA increased to Rs 84 crore from Rs 49 crore. The 70.3% EBITDA increase exceeded the 34.1% rise in total revenue, which reached Rs 294 crore from Rs 219 crore. The margin movement was 610 basis points year on year.

The reported improvement also extended to gross profit and profit before tax. Gross profit, which the release says includes other income, rose 52.6% to Rs 134 crore and gross margin increased to 45.6% from 40.1%. Profit before tax rose 74.1% to Rs 77 crore, and its margin increased to 26.3% from 20.3%.

Financial measure (Rs crore)	Q2 FY2026	Q1 FY2027	Q2 FY2027
Total revenue	219	256	294
Gross profit	88	121	134
EBITDA	49	65	84
Profit after tax	35	47	63

Sequentially, Quality Power's EBITDA margin increased from 25.2% in Q1 FY2027 to 28.6% in Q2 FY2027, a 340-basis-point change. Revenue increased 14.5% from Rs 256 crore and EBITDA rose 29.9% from Rs 65 crore. Gross profit grew 10.7% from Rs 121 crore, while gross margin moved down from 47.2% in Q1 to 45.6% in Q2.

What were Quality Power's Q2 profit and revenue results?

Quality Power reported Q2 FY2027 profit after tax of Rs 63 crore, up 80.1% from Rs 35 crore in Q2 FY2026, and its profit-after-tax margin rose to 21.6% from 16.1%. This rate of profit growth was above the 34.1% increase in reported total revenue to Rs 294 crore. The release calculates all reported margins on total revenue.

The company attributed revenue growth to continued demand across its high-voltage equipment and power-quality portfolios. Management also cited an international Flexible AC Transmission Systems (FACTS) equipment order through Endoks Enerji in Japan and multiple 400 kilovolt instrument-transformer orders through Mehru Hitech Energy India. The release does not disclose the value, delivery schedule or Q2 revenue contribution of those orders.

The release contains a separate revenue figure in management commentary. Chairman and Managing Director P. T. Pandiyan said consolidated Q2 revenue was Rs 285.45 crore, up 38.7%, whereas the consolidated financial-performance table shows total revenue of Rs 294 crore, up 34.1%. Quality Power did not provide a reconciliation between the two figures in the release.

How did Quality Power perform in H1 FY2027?

Quality Power's H1 FY2027 total revenue increased 33.2% to Rs 550 crore, EBITDA rose 52.2% to Rs 149 crore, and profit after tax increased 52.4% to Rs 110 crore. EBITDA margin for the six-month period rose to 27.0% from 23.7% in H1 FY2026, a 330-basis-point increase. Gross margin rose to 46.4% from 41.7%.

Q2 represented Rs 294 crore of H1 FY2027 revenue of Rs 550 crore, following Rs 256 crore in Q1. Similarly, Q2 EBITDA of Rs 84 crore followed Rs 65 crore in Q1, and Q2 profit after tax of Rs 63 crore followed Rs 47 crore. Q2's 28.6% EBITDA margin was therefore above the H1 margin of 27.0%.

Financial measure (Rs crore)	H1 FY2026	H1 FY2027	Year-on-year change
Total revenue	413	550	33.2%
EBITDA	98	149	52.2%
Profit before tax	89	137	54.2%
Profit after tax	72	110	52.4%

Management's commentary separately cited H1 FY2027 revenue of Rs 518.11 crore, up 35.5%, compared with Rs 550 crore and 33.2% in the financial-performance table. It cited profit after tax of Rs 110.05 crore, broadly corresponding to the table's Rs 110 crore. The release does not state why the two H1 revenue measures differ.

What supports Quality Power's order and capacity plans?

Quality Power reported an approximate consolidated order book of Rs 2,010 crore as of the release date, with the underlying segment figures dated 30 September 2026. Endoks accounted for Rs 800 crore, Mehru for Rs 610 crore, Quality Power for Rs 602 crore and other businesses for Rs 5 crore. The company said the book provides visibility across FY2027 and beyond.

The order book includes long-cycle, high-engineering-content projects awarded by global utilities, transmission system operators, original equipment manufacturers, and engineering, procurement and construction contractors. Quality Power reported progress in high-voltage direct current, FACTS and high-voltage equipment, as well as initial orders for high-voltage interconnect equipment for hyperscale and artificial intelligence data-centre campuses in the United States. No order values for those developments were disclosed.

The Global Coil Factory at Sangli began manufacturing on 20 October 2026 for high-voltage air-core dry-type reactors and specialised coil products used in high-voltage alternating current, high-voltage direct current, FACTS and renewable-energy applications. A Power Conversion Systems facility in Türkiye started operations on 16 October 2026 to manufacture converters and inverters for utility-scale battery energy storage systems and other grid-connected applications. Management said both facilities would be progressively scaled in line with customer requirements and operational plans.

Quality Power also executed a share purchase agreement on 23 September 2026 for the proposed acquisition of up to 100% of Winwin Speciality Insulators Limited, following confirmatory due diligence that reported no adverse findings. The proposed transaction remains subject to applicable conditions and approvals. Winwin completed type testing for porcelain insulators up to 400 kilovolts and secured qualifications and orders for 800 kilovolt high-voltage direct current, 765 kilovolt and 400 kilovolt applications.

Conclusion

Quality Power's Q2 FY2027 performance showed EBITDA and profit after tax increasing faster than reported revenue. EBITDA increased 70.3% to Rs 84 crore against 34.1% revenue growth to Rs 294 crore, lifting the EBITDA margin by 610 basis points to 28.6%. The H1 result followed the same direction, with EBITDA margin rising 330 basis points to 27.0%.

Next developments disclosed by Quality Power include the ramp-up of the Sangli and Türkiye facilities that began operations in October 2026, execution of the Rs 2,010 crore order book, and fulfilment of conditions and approvals for the proposed Winwin transaction. Management identified manufacturing throughput, customer qualifications, supply chains, and the availability and pricing of electrical-grade steel, copper and specialised insulation systems as priorities requiring attention.

Frequently Asked Questions

Quality Power reported EBITDA margin of 28.6% in Q2 FY2027, compared with 22.5% in Q2 FY2026. EBITDA rose 70.3% to Rs 84 crore, exceeding the 34.1% increase in total revenue to Rs 294 crore. Gross margin also increased to 45.6% from 40.1%.

Quality Power reported Q2 FY2027 profit after tax of Rs 63 crore, up 80.1% from Rs 35 crore a year earlier. Its profit-after-tax margin was 21.6%, compared with 16.1% in Q2 FY2026. Profit before tax increased 74.1% to Rs 77 crore.

Quality Power reported H1 FY2027 revenue of Rs 550 crore, EBITDA of Rs 149 crore and profit after tax of Rs 110 crore in its financial-performance table. These measures rose 33.2%, 52.2% and 52.4%, respectively, from H1 FY2026. H1 EBITDA margin was 27.0%, up from 23.7%.

Quality Power reported an approximate consolidated order book of Rs 2,010 crore as of the release date. The 30 September 2026 segment split was Rs 800 crore for Endoks, Rs 610 crore for Mehru, Rs 602 crore for Quality Power and Rs 5 crore for other businesses. The company said the book offers visibility across FY2027 and beyond.

Quality Power's Global Coil Factory in Sangli began manufacturing operations on 20 October 2026. Its Power Conversion Systems manufacturing facility in Türkiye began operations on 16 October 2026. Management said each facility would be scaled progressively according to customer requirements and operational plans.