Quality Power_Q3 FY25 results
India March 18, 2025: The Board of Directors at Quality Power Electrical Equipments Limited (BSE: 544367; NSE: QPOWER), one of India’s leading entities in critical energy, transition equipment and power technologies, today approved the financial results for the quarter December 31, 2024.
Q3 & 9M FY2025 Key Performance Highlights (Consolidated):
- Q3 FY25 Revenue from Operations stood at ₹726 million (₹72.6 crore)
- Q3 FY25 EBITDA for the quarter was ₹174 million (₹17.4 crore), marking a 63.2% Y-o-Y growth, with EBITDA margins expanding to 24.0%
- Q3 FY25 Profit After Tax (PAT) increased by 44.6% Y-o-Y to ₹196 million (₹19.6 crore), with PAT margins reaching 24.5%
- Company holds an order backlog of ₹5,170 million (₹517 crore) and an immediate order pipeline of ₹7,000 million (₹700 crore), with contributions from Quality Power Equipments, Endoks, and Mehru
- Acquired the majority stake of 51% in Mehru Electrical & Mechanical Engineers for ₹1,200 million (₹120 crore)
- The Board approved investments for new manufacturing facilities at E-5, E-6 in Sangli and Cochin to strengthen the Power Products business.
- Approval for a ₹125 crore soft loan from Promoter Directors at Repo + 0.5% (7% p.a.) with a 15-year tenure and a 2-year moratorium, offering flexible, penalty-free prepayment
- A dedicated M&A Committee has been formed, chaired by Mr. Bharanidharan Pandyan (Jt. Managing Director), to evaluate expansion and acquisition opportunities
- The Board has authorized the M&A Committee to conduct due diligence and finalize terms for acquiring a majority stake in STATCON Energiaa, with details to be disclosed post-agreement
Q3 & 9M FY2025 Financial Performance Summary (Consolidated)
|
Rs. in Mn. |
Q3 FY25 |
Q3 FY24 |
Y-o-Y (%) |
Q2 FY25 |
Q-o-Q (%) |
9M FY25 |
9M FY24 |
Y-o-Y (%) |
|
Revenue from Operations |
725.9 |
1,420.6 |
(48.9) % |
943.1 |
(23.0) % |
2,283.2 |
2,626.2 |
(13.1) % |
|
|
|
|
|
|
|
|
|
|
|
Gross Profit* |
355.9 |
407.7 |
(12.7) % |
368.7 |
(3.5) % |
994.7 |
833.4 |
19.4% |
|
Gross Margin% |
49.0% |
28.7% |
|
39.1% |
|
31.7% |
43.6% |
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA* |
174.1 |
106.7 |
63.2% |
80.8 |
115.6% |
490.5 |
178.8 |
174.4% |
|
EBITDA Margin% |
24.0% |
7.5% |
|
8.6% |
|
21.5% |
6.8% |
|
|
|
|
|
|
|
|
|
|
|
|
PBT |
218.3 |
146.0 |
49.5% |
141.4 |
54.3% |
766.7 |
415.6 |
84.5% |
|
PBT Margin% |
27.4% |
9.7% |
|
13.7% |
|
29.2% |
14.1% |
|
|
|
|
|
|
|
|
|
|
|
|
PAT |
195.7 |
135.3 |
44.6% |
134.3 |
45.7% |
696.5 |
379.6 |
83.5% |
|
PAT Margin% |
24.5% |
9.0% |
|
13.0% |
|
26.5% |
12.9% |
|
Commenting on Company’s performance, Mr. Bharanidharan Pandyan, Jt. Managing Director, Quality Power Electrical Equipments Ltd, said:
“With the successful completion of our IPO in February 2025, raising ₹8,586 million (₹858.6 crore), we have entered a new phase of growth, well-positioned to drive operational excellence, innovation, and financial discipline. The capital raised is being strategically deployed towards capacity expansion, technological advancements, and targeted acquisitions, strengthening our foundation for sustained growth in an evolving power landscape.In Q3 FY2025, our performance showcased resilience and operational efficiency. Revenue from Operations stood at ₹726 million (₹72.6 crore), impacted by project execution cycles and variations in demand across business segments. However, our focus on cost optimization, supply chain efficiencies, and a favorable business mix resulted in EBITDA growth of 63.2% YoY to ₹174 million (₹17.4 crore), with margins expanding to a record 24.0%. PAT rose by 44.6% YoY to ₹196 million (₹19.6 crore), reinforcing our profitability-driven approach. We maintained a strong order backlog of ₹5,170 million (₹517 crore) and an immediate order pipeline of ₹7,000 million (₹700 crore), underscoring sustained demand for our solutions across Quality Power Equipments, Endoks, and Mehru.
As part of our post-IPO strategy, we completed the acquisition of a 51% majority stake in Mehru Electrical & Mechanical Engineers for ₹1,200 million (₹120 crore). This acquisition significantly enhances our capabilities in high-voltage instrument transformers up to 500kV, expanding our market reach across India, Southeast Asia, and Africa. Mehru’s strong R&D and manufacturing expertise unlock synergies, driving efficiency, technological innovation, and deeper market penetration.
To sustain our growth momentum, we are investing in state-of-the-art manufacturing facilities at E-5 and E-6 in Sangli, along with a new facility in Cochin, further strengthening our Power Products business. Additionally, we have secured a ₹1,250 million (₹125 crore) soft loan from Promoter Directors, ensuring financial flexibility to execute our expansion plans efficient. We continue to explore inorganic growth opportunities, with our dedicated M&A Committee actively evaluating potential acquisitions. The Board has authorized due diligence for acquiring a majority stake in STATCON Energiaa, which will further enhance our portfolio in advanced power solutions.
As we embark on this new chapter as a publicly listed company, our strategic priorities remain centered on expanding manufacturing capabilities, enhancing our product portfolio, and driving innovation through R&D investments. Our commitment to delivering sustainable growth, creating long-term value for our shareholders, and maintaining investor confidence remains unwavering. We are focused on executing our strategy with discipline and look forward to driving continued success for our customers, investors, partners, and stakeholders
Quality Power Acquires Majority Stake in Mehru Engineers
India 7th March 2025: BSE & NSE listed Quality Power Electrical Equipments Limited (QPEEL) (BSE: 544367; NSE: QPOWER) is pleased to announce the successful majority acquisition of Mehru Electrical and Mechanical Engineers Pvt Ltd (MEMEPL), a leading manufacturer of high-voltage instrument transformers for utilities, industries and power transmission networks. This acquisition represents a strategic milestone, aligning with Quality Power’s long-term vision to expand its technological capabilities, USP, manufacturing scale and global market reach.
Transaction Overview
Quality Power has acquired 51% of the share capital of Mehru for a total cash consideration of Rs. 120 crore, through a Share Purchase Agreement. Trilegal advised Quality Power on the transaction documentation and legal due diligence.
Commenting on the Acquisition of Mehru, Mr. Bharanidharan Pandyan, Joint Managing and Whole-time director, Quality Power, said:
“We are pleased to announce the majority acquisition of Mehru Electrical & Mechanical Engineers, a company with an outstanding legacy in high-voltage instrument transformers. This was one of the main objectives of the recently concluded IPO and I am pleased to share that we have honoured our commitment with lightening speed. From a product portfolio stand point, this strategic move reinforces Quality Power’s commitment to cutting-edge technology, precision engineering, and market leadership in high-voltage equipment.
Mehru’s expertise in oil-filled and dry-type instrument transformers up to 500kV aligns perfectly with our vision of delivering world-class power equipments solutions. With the growing global demand for grid stability, FACTS, and renewable integration, this acquisition positions us strongly in a multi-billion-dollar market energy products market where the barriers to entry are high due to stringent technical requirements and regulatory compliance.
What makes this acquisition even more compelling is Mehru’s highly skilled workforce, whose deep domain knowledge and engineering excellence have earned customer trust over decades. By integrating Mehru’s technology with our advanced manufacturing and global supply chain, we are creating a powerhouse of innovation, reliability, and customer-centric solutions.
With this synergy, Quality Power is now better equipped than ever to serve utilities, industries, and infrastructure projects worldwide with superior, high-precision electrical equipment.”
Mehru Transaction Strategic Rationale
- Enhanced Product Development: Accelerates innovation through advanced R&D capabilities, driving the development of next-generation high-voltage equipment, including smart monitoring and digital integration solutions
- Expanded Product Offerings: Strengthens Quality Power’s portfolio by integrating Mehru’s expertise in instrument transformers with its existing range of shunt reactors, power transformers, line traps, and FACTS (Flexible AC Transmission Systems) solutions, enabling comprehensive high-voltage equipment offerings
- Turnkey Solutions for Metering and Protection Applications: Expands capabilities to provide fully integrated solutions for power grids, renewables, and industrial applications.
- Skilled Workforce: Gains access to Mehru’s team of over 100 engineers, reinforcing a total skilled workforce of more than 500 personnel to drive technology advancements and large-scale project execution
- Geographic Expansion: Extends market reach through Mehru’s established customer base in Southeast Asia and Africa, further enhancing global presence
- Capacity for Large-Scale Projects: Strengthens manufacturing capabilities, optimizing production capacity and operational resilience to efficiently execute large-scale projects in power transmission and distribution
Synergies Driving Growth and Innovation
- Complementary Product Offerings: Mehru’s precision-engineered instrument transformers enhance Quality Power’s power quality and transmission solutions, creating a fully integrated grid equipment portfolio
- Advanced R&D & Engineering: Mehru’s state-of-the-art testing facilities, robust R&D capabilities, and skilled engineering team strengthen Quality Power’s innovation-driven approach, particularly in high voltage products business
- Large-Scale Manufacturing: The integration of Mehru’s expansive production facilities expands Quality Power’s manufacturing footprint, supporting both domestic and international demand
- Market Expansion: Mehru’s strong relationships with Power Grid Corporation of India (PGCIL), state utilities, EPC contractors, and global customers open new avenues for growth for complimentary Quality Power products
- Supply Chain & Cost Optimization: The combination of Mehru’s manufacturing expertise with Quality Power’s vertically integrated supply chain enhances cost efficiencies, project execution, and product reliability
New Product Development & Future Collaborations
Quality Power is committed to developing next-generation instrument transformers with enhanced accuracy, smart monitoring capabilities, and digital integration for modern grid applications. The combined R&D teams will explore cutting-edge solutions, including sensor-based transformers, AI-driven predictive maintenance, and hybrid insulation technologies, aligning with global trends in smart grids and grid automation