Quality Power Q2 profit rises 80.1% as EBITDA margin reaches 28.6%

Quality Power Electrical Equipments Limited reported profit after tax of Rs 63 crore in the second quarter of financial year 2027 (Q2 FY27), up 80.1% year on year, while total income rose 34.1% to Rs 294 crore. Quality Power’s EBITDA increased 70.3% to Rs 84 crore, taking EBITDA margin to 28.6% from 22.5% a year earlier.

How did Quality Power perform in Q2 FY27?

Quality Power reported total income of Rs 294 crore and profit after tax of Rs 63 crore in Q2 FY27, against Rs 219 crore and Rs 35 crore, respectively, in Q2 FY26. Income increased by Rs 75 crore, while profit after tax increased by Rs 28 crore, meaning profit growth of 80.1% exceeded income growth of 34.1%.

Gross profit increased by Rs 46 crore to Rs 134 crore, compared with a Rs 29 crore increase in cost of goods sold to Rs 160 crore. EBITDA, or earnings before interest, tax, depreciation and amortisation, rose by Rs 35 crore to Rs 84 crore. Profit before tax and exceptional items rose Rs 33 crore to Rs 77 crore, while finance cost increased to Rs 3 crore from Rs 2 crore and depreciation and amortisation rose to Rs 4 crore from Rs 3 crore.

Why did Quality Power’s margins change in Q2 FY27?

Quality Power’s reported margins improved year on year in Q2 FY27, led by a 6.1-percentage-point increase in EBITDA margin to 28.6%. Gross profit margin rose to 45.6% from 40.1%, profit-before-tax margin increased to 26.3% from 20.3%, and profit-after-tax margin advanced to 21.6% from 16.1%. The presentation calculates all margins on total income.

The disclosed figures show that gross profit grew 52.6% and EBITDA grew 70.3%, both faster than 34.1% total-income growth. The presentation does not give a product mix, pricing, volume or operating-cost explanation for those movements. It also states that gross profit includes other income, which affects the reported 45.6% gross margin.

How did Quality Power’s Q2 FY27 results compare with Q1 FY27?

Quality Power’s Q2 FY27 total income was Rs 294 crore, up Rs 38 crore from Rs 256 crore in Q1 FY27, while profit after tax rose Rs 16 crore from Rs 47 crore. The company reported quarter-on-quarter growth of 14.5% in income, 29.9% in EBITDA and 35.5% in profit after tax.

The sequential margin trend was not uniform across measures. Gross profit margin declined to 45.6% in Q2 FY27 from 47.2% in Q1 FY27, while EBITDA margin rose from 25.2% to 28.6% and profit-after-tax margin increased from 18.2% to 21.6%. Finance cost rose from Rs 1 crore to Rs 3 crore, depreciation and amortisation remained Rs 4 crore, and tax expense declined to Rs 13 crore from Rs 14 crore.

What did Quality Power report for H1 FY27?

Quality Power reported first-half FY27, or H1 FY27, total income of Rs 550 crore and EBITDA of Rs 149 crore, compared with Rs 413 crore and Rs 98 crore in H1 FY26. That represented 33.2% growth in income and 52.2% growth in EBITDA. Gross profit rose 48.3% to Rs 255 crore from Rs 172 crore.

H1 FY27 EBITDA margin was 27.0%, compared with 23.7% a year earlier, while gross profit margin increased to 46.4% from 41.7%. Profit before tax and exceptional items increased 54.2% to Rs 137 crore, and profit after tax rose 52.4% to Rs 110 crore from Rs 72 crore. Diluted earnings per share were Rs 10.14, against Rs 6.26 in H1 FY26.

What does Quality Power’s H1 FY27 balance sheet show?

Quality Power’s property, plant and equipment stood at Rs 385 crore at H1 FY27, compared with Rs 324 crore at FY26. Inventories increased to Rs 219 crore from Rs 116 crore, while trade receivables fell to Rs 231 crore from Rs 242 crore. Cash and bank balances declined to Rs 151 crore from Rs 248 crore over the same comparison.

Total equity increased to Rs 862 crore at H1 FY27 from Rs 773 crore at FY26. Borrowings rose to Rs 40 crore from Rs 36 crore, trade payables increased to Rs 193 crore from Rs 164 crore, and other liabilities rose to Rs 168 crore from Rs 139 crore. Other assets increased to Rs 277 crore from Rs 181 crore, but the presentation does not provide a breakdown of the changes.

Conclusion

Quality Power’s Q2 FY27 results showed profit growth outpacing income growth, with profit after tax rising 80.1% to Rs 63 crore against a 34.1% increase in total income to Rs 294 crore. Gross, EBITDA, profit-before-tax and profit-after-tax margins all increased from Q2 FY26. Compared with Q1 FY27, EBITDA and net margins rose, while gross margin declined from 47.2% to 45.6%.

The next disclosed matter to watch is the proposed acquisition of Winwin Speciality Insulators Limited. In its 31 October 2026 presentation, Quality Power said the transaction had reached term-sheet stage and remained subject to confirmatory due diligence, definitive documentation, regulatory and shareholder approvals, and other customary closing conditions.