Quality Power Electrical Equipments has announced its Q3 FY25 results and it’s a mixed bag. While the revenue is down, the operational efficiency is strong, and margins are up. Quality Power is also focused on growth via strategic acquisitions and capacity expansions to support long-term growth.
Quality Power Q3 FY25 Performance
- Revenue: Down from INR 142.10 crore in Q3 FY24 to INR 72.6 crore in Q3 FY25 (-48.9 % YoY, -23.0% QoQ).
- Gross Margin: Up from 28.7% in Q3 FY24 to 49.0% in Q3 FY25.
- EBITDA: Up from INR 10.7 crore in Q3 FY24 to INR 17.4 crore in Q3 FY25 (+63.2% YoY).
- EBITDA Margin: Up from 7.5% in Q3 FY24 to 24.0% in Q3 FY25.
- PAT: Up from INR 13.5 crore in Q3 FY24 to INR 19.6 crore in Q3 FY25 (+50% YoY).
- PAT Margin: Up from 9.0% in Q3 FY24 to 24.5% in Q3 FY25.
- Order Book: INR 517.00 crore with an additional INR 700.00 crore in the pipeline.
Revenue was impacted by project execution cycles and demand fluctuations. But Quality Power Q3 FY25 results show aggressive cost-cutting and operational efficiency, which is a record high margin.
Mehru Electricals Q3 FY25 Performance
Recently acquired Mehru Electricals has separate numbers for Q3 FY25:
- Revenue: Up from INR 52.2 crore in Q3 FY24 to INR 64.3 crore in Q3 FY25 (+23.1% YoY).
- EBITDA: Up from INR 6.4 crore in Q3 FY24 to INR 12.4 crore in Q3 FY25 (+93% YoY).* EBITDA Margin: Up from 12.3% in Q3 FY24 to 19.3% in Q3 FY25.
- PAT: Up from INR 4.5 crore in Q3 FY24 to INR 8.5 crore in Q3 FY25 (+87.4% YoY).
- PAT Margin: Up from 8.7% in Q3 FY24 to 13.2% in Q3 FY25.
Mehru Electricals’ numbers are yet to be consolidated into Quality Power numbers and will be incorporated from Q4 FY25 onwards.
Quality Power – Expansion and Acquisitions
STATCON Energiaa Acquisition
Quality Power Q3 FY25 announces the acquisition of STATCON Energiaa Pvt. Ltd., a company specialized in static converters, battery energy storage systems (BESS), and power quality solutions. This will strengthen Quality Power’s presence in power electronics and defence applications.
Capacity Enhancement and Fund Utilization
Board has approved new manufacturing facilities in Sangli (Maharashtra) and Cochin (Kerala) to meet growing demand and improve productivity. After the IPO of INR 858.70 crore in Feb 2025, Quality Power has utilised INR 225.00 crore for primary issue, for capex, acquisitions and technology upgradation.
Key Clients and Presence
For the first time since IPO, Quality Power has disclosed major clients, including GE, Toshiba, Eaton, L&T, JSW Group, Reliance Industries, ABB, ArcelorMittal, Adani Group, Power Grid, Siemens, Hitachi Energy, Kalpataru, Tata Group, Hyundai, KEC International, Saudi Aramco, and Vedanta.
The company has international presence in India and Turkey through subsidiaries Endoks (Turkey) and Mehru Electricals.
Investment Outlook: Is Quality Power a Stock to Watch?
- Energy Transition & Sustainability: Well positioned in high voltage electrical equipment, with a growing demand for grid infrastructure and sustainable energy solutions.
- Order Book: Strong INR 517.00 crore order book and INR 700.00 crore pipeline.
- R&D Driven Growth: Investments in NABL accredited R&D labs for STATCOMs, SVCs, harmonic filters and shunt reactors.
Management Commentary
Mr. Bharanidharan Pandyan, Joint Managing & Whole-time Director said Quality Power’s focus is on profitability, operational efficiency and strategic growth.
“As we enter into our listed journey, we will focus on capacity expansion, product diversification and R&D driven innovation. Our goal is sustainable growth and long-term value creation for stakeholders,” he said.
Conclusion
Quality Power Q3 FY25 results show the company is able to withstand the demand challenge and improve profitability. Though revenue decline is a concern, healthy margin expansion, strong order book and growth strategy make Quality Power
Quality Power IPO made its stock market debut on 24 February 2025 with an issue size of INR 858.7 crore. The issue was subscribed 1.29 times and landed in negative territory with 8.73% down from the allotment price. Currently, the stock is trading 24.23% below its allotment price of INR 425 per share. However, LIC have shown faith in the company’s business model and invested INR 49.99 crore in its anchor investors round via its mutual fund schemes.
Investors and analysts will closely monitor Q4 FY25, when Mehru Electricals’ financials will be consolidated, and the STATCON Energiaa acquisition impact will unfold. The coming quarters will determine how well Quality Power executes its expansion plans and sustains financial momentum.