Shares of Quality Power and Electrical Equipments Ltd. declined nearly 10% on Thursday, May 14, reacting to their fourth quarter results. According to reports from CNBC TV18, the stock hit an intraday low of ₹1,096.2 apiece before recovering to trade 3% lower at ₹1,179.7 at 11:50 am. Despite the quarterly decline, the stock has gained 6.5% in the past month, indicating longer-term investor confidence.
The company's fourth quarter results showed mixed signals with strong revenue growth but margin pressures. As reported by CNBC TV18, Quality Power's EBITDA increased 83.45% to ₹29.4 crore from ₹16.03 crore last year. However, EBITDA margin contracted sharply to 10.5% from 14.84% in the year-ago period**. The margin compression was attributed to one-time labour costs and consolidation of lower margin subsidiaries, with the Turkey subsidiary's loss of ₹26 crore impacting quarterly results.
For the full financial year 2026, Quality Power delivered robust growth across key metrics. According to CNBC TV18, the company's PAT increased 85.5% to ₹185.5 crore from ₹100 crore last year. Revenue surged 180.18% to ₹947 crore from ₹338 crore, while EBITDA increased 169.9% to ₹176.8 crore from ₹65.5 crore in FY25. The company's EBITDA margin contracted to 18.67% from 19.38% in the year-ago period**.
Management highlighted several positive developments for future growth. As reported by CNBC TV18, the company's order book comprises over ₹1,300 crore, with less than 10% impact from the West Asia war, though it is long-term in nature. Quality Power is targeting another ₹1,000 crore order book increase in FY27. The company expects quarterly numbers to see some uptick due to elevated pricing at the moment, with most governments renewing focus on renewable energy and battery storage systems. The company anticipates over 20% growth in FY27 and expects combined margins to be healthy with India business at 25% and Nehru business at 15% in FY27.
The company provided updates on its international operations and market expansion. According to CNBC TV18, Quality Power reported organic growth of 150% in FY26 and beat margins across the board. The company's new project from Turkey is worth ₹290 crore and is seeing more traction from US and European markets. Management noted delays in the Sangli plant due to geopolitical tension, while expecting a few orders in data center space in the first quarter itself. The company emphasized that stock piling is the way forward to meet guidance and managing inventories effectively.
