Quality Power Electrical Equipments Ltd. (QPOWER) AI Stock Analysis

• Market Cap: ₹61.91B
• Dividend Yield: 0.13%
• Average Volume (3M): 62.04K
• Price to Earnings (P/E): 36.3
• Beta (1Y): 1.89
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 163
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 77,444,100
• 10 Day Avg. Volume: 29,918
• 30 Day Avg. Volume: 62,036
• PEG Ratio: 0.46
• Price to Book (P/B): 5.36
• Price to Sales (P/S): 6.76
• P/FCF Ratio: 49.91
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: ₹922.00 ▲(10.62% Upside)
• Action: Reiterated Date: 11/18/25
• Date: Action: Reiterated 11/18/25

Quality Power Electrical Equipments Ltd. shows strong financial performance with robust revenue and profit growth, efficient cost management, and solid cash flow generation. However, technical analysis indicates bearish momentum, with the stock being oversold and trading below key moving averages. The high P/E ratio suggests potential overvaluation, and the low dividend yield offers limited income potential. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strong Balance Sheet

Extremely low leverage and a majority-equity funding base provide durable financial flexibility. With D/E at 0.02 and a 52% equity ratio, the company can fund capex, absorb demand shocks, and pursue growth or M&A without stressing solvency, supporting multi-quarter resilience.

Robust Cash Generation

Sustained operating cash flow growth and high free-cash-flow improvement indicate strong cash conversion. Near-term cash generation supports reinvestment, working capital, and potential shareholder returns while lowering refinancing needs over several quarters.

Healthy Margins & Growth

High gross and EBITDA margins with double-digit revenue growth point to durable pricing power and cost efficiency. Consistent margin profile enhances cash flow stability and suggests competitive advantages that can sustain profitability across multiple reporting periods.

Negative Factors

Above-market Volatility

A beta near 1.9 implies earnings and equity returns are sensitive to market swings. That structural volatility raises the cost of capital, can complicate long-term planning and investor base stability, and increases the likelihood of sharp valuation swings over months.

Low Dividend Income

A very low yield limits appeal to income-focused investors and reduces a steady cash-return channel that can stabilize shareholder support. Over a multi-month horizon, this can influence investor composition and reduce downside cushioning provided by regular payouts.

Limited Investor Disclosure

Absence of earnings call information and limited disclosures reduces transparency into management's outlook and strategy. Over several quarters this can impede investor ability to assess forward guidance and increases execution uncertainty despite strong reported fundamentals.

Quality Power Electrical Equipments Ltd. Business Overview & Revenue Model

Company Description

Quality Power Electrical Equipments Limited provides power products and solutions for power generation, transmission, distribution, and automation sectors. Its power products include reactors, line traps, transformers, instrument transformers, line tuners, metal enclosed capacitor banks, and composites; and power quality systems comprise static VAR compensators, harmonic filters, capacitor banks, shunt reactors, and static synchronous compensators. The company also offers converters and reactive power compensation systems. It serves power utilities, power industries, and renewable energy entities. Quality Power Electrical Equipments Limited was incorporated in 2001 and is based in Sangli, India.

How the Company Makes Money

QPOWER generates revenue through several key streams: the sale of electrical equipment and components, which includes transformers, switchgear, and power distribution units; installation and maintenance services that ensure optimal performance and longevity of their products; and consulting services aimed at optimizing energy efficiency for clients. Additionally, the company has established strategic partnerships with other industry leaders, allowing it to expand its market reach and enhance product offerings. These collaborations often lead to joint ventures, co-branded projects, and shared research and development initiatives, further bolstering QPOWER's revenue capabilities.

Quality Power Electrical Equipments Ltd. Financial Statement Overview

Summary

Quality Power Electrical Equipments Ltd. exhibits robust financial health with strong revenue and profit growth, efficient cost management, and a solid balance sheet with low leverage. The company has demonstrated excellent cash flow generation capabilities, positioning it well for future opportunities and challenges in the Electrical Equipment & Parts industry.

Income Statement

Quality Power Electrical Equipments Ltd. has demonstrated strong growth in revenue and profitability. The gross profit margin for 2025 is 40.42%, showing efficient cost management. The net profit margin increased to 19.65%, indicating improved profitability. Revenue growth has been impressive, with a 11.54% increase over the last year, driven by strong operational performance. EBIT and EBITDA margins are healthy at 18% and 35.47%, respectively, highlighting robust operational efficiency.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio of 0.02, indicating low financial leverage and risk. The return on equity (ROE) is 15.59%, reflecting efficient use of equity capital. The equity ratio is 52.13%, showing a solid capital structure with more than half of the assets financed by equity. The company is well-positioned for future growth with a strong equity base.

Cash Flow

Operating cash flow is solid with a 21.23% increase over the previous year, reflecting strong cash generation from operations. The free cash flow to net income ratio is 0.69, indicating good cash conversion efficiency. The free cash flow growth rate of 899.39% suggests a substantial improvement in cash generation. The operating cash flow to net income ratio of 0.94 indicates effective cash management relative to profitability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	4.35B	3.37B	3.02B	2.47B	1.75B
Gross Profit	1.73B	1.36B	1.01B	854.54M	666.34M
EBITDA	970.32M	1.19B	689.15M	521.90M	514.63M
Net Income	738.54M	661.72M	374.44M	206.06M	165.15M
Balance Sheet
Total Assets	0.00	8.14B	5.93B	3.12B	2.53B
Cash, Cash Equivalents and Short-Term Investments	2.44B	2.44B	1.05B	808.35M	678.60M
Total Debt	0.00	88.96M	492.00M	106.07M	115.18M
Total Liabilities	-5.94B	2.20B	3.43B	1.37B	925.63M
Stockholders Equity	5.94B	4.24B	1.53B	1.12B	925.40M
Cash Flow
Free Cash Flow	60.95M	455.97M	37.75M	293.26M	53.80M
Operating Cash Flow	82.19M	624.58M	515.16M	443.05M	85.35M
Investing Cash Flow	5.81M	-927.27M	-385.93M	-309.98M	205.76M
Financing Cash Flow	-72.25M	1.71B	253.80M	-35.76M	16.24M

Quality Power Electrical Equipments Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VOLTAMP	73 Outperform	₹88.55B	20.04	―	1.27%	15.87%	-4.28%
GENUSPOWER	68 Neutral	₹76.83B	14.87	―	0.82%	129.98%	215.49%
INDOTECH	68 Neutral	₹14.73B	16.63	―	―	34.48%	40.61%
TARIL	65 Neutral	₹88.20B	28.99	―	0.07%	33.60%	100.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SALZERELEC	58 Neutral	₹10.84B	24.44	―	0.36%	21.51%	-17.75%
QPOWER	55 Neutral	₹61.91B	36.35	―	0.13%	―	―

Quality Power Electrical Equipments Ltd. Corporate Events

Quality Power Publishes Q3 and Nine-Month FY26 Unaudited Results in Newspapers

Quality Power Electrical Equipments Ltd. has notified the stock exchanges that it has published its unaudited standalone and consolidated financial results for the third quarter and nine months ended 31 December 2025 in Business Standard (English) and Kesari (Marathi), and uploaded the same on its website. The move is a procedural step to comply with SEBI’s Listing Obligations and Disclosure Requirements, underscoring the company’s adherence to disclosure norms for investors on both NSE and BSE.

Quality Power Posts Record Q3 Revenue and Profit, Expands Portfolio with Sukrut Electric Stake

Quality Power Electrical Equipments Limited reported its highest-ever quarterly performance for the third quarter of FY2025-26, with consolidated total revenue surging 256.5% year-on-year to INR 2,843 million and EBITDA jumping 222.7% to INR 793 million, while profit after tax more than tripled to INR 628 million. Management highlighted strong demand in the global power transmission and grid equipment market, and the company advanced its inorganic growth strategy by acquiring a 50% stake in Sukrut Electric Company, a move expected to broaden its product range, create cross-supply opportunities and strengthen its presence with OEMs and utilities through closer operational alignment within the group.

Quality Power Shuts Trading Window Ahead of December-Quarter Results

Quality Power Electrical Equipments Limited has announced the closure of its trading window for designated persons and their immediate relatives starting 1 January 2026, in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s own code of conduct. The restriction will remain in place until 48 hours after the company files its unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, with the board meeting date for approving these results to be notified separately to the stock exchanges, underscoring the company’s adherence to regulatory norms and governance practices around handling unpublished price-sensitive information.

Quality Power to Acquire 76% Stake in Veeral Controls to Boost Power Electronics Capabilities

Quality Power Electrical Equipments Limited has announced that its subsidiary, Quality Power Engineering Projects Private Limited, has executed a share subscription and shareholders’ agreement to acquire a 76% equity stake in Veeral Controls Private Limited, a Gandhinagar-based company engaged in the design, development and manufacturing of power electronics components and systems. Following the transaction, Veeral Controls will become a step-down subsidiary of Quality Power, a move aimed at broadening the group’s technology base in high-current power conversion and proprietary rectifier and power conversion technologies, and creating product synergies that bolster its presence in green hydrogen, industrial, rail and defense applications; the all-cash deal is not classified as a related-party transaction and does not require specific regulatory approvals, underscoring a relatively straightforward expansion of Quality Power’s capabilities and market reach.