Latest news with #QualityPower
&w=3840&q=100)
Business Standard
a day ago
- Business
- Business Standard
Quality Power shares zoom 6% on bagging ₹10 crore worth export order
Shares of Quality Power Electrical Equipments rose over 6 per cent on Tuesday after it bagged an export order worth ₹10 crore for a hyperscale data centre project in Finland. The heavy electrical equipment firm's stock rose as much as 6.3 per cent during the day to ₹869.9 per share. The stock pared gains to trade 4.14 per cent higher at ₹861 apiece, compared to a 0.02 per cent advance in Nifty 50 as of 10:50 AM. Shares of the company are trading near their all-time high of ₹931.4, which it hit on July 18. The counter has risen nearly 100 per cent since its listing in February this year. Quality Power has a total market capitalisation of ₹6,722.15 crore. Track LIVE Stock Market Updates Here Quality Power bags over ₹10 crore export order The company secured an export order worth over ₹10 crore from a European client for a hyperscale data centre project in Finland, according to an exchange filing. The order involves the supply of dry-type shunt reactors, marking a significant milestone in the company's global expansion and growing role in critical power infrastructure for digital facilities. The reactors, based on Quality Power's advanced air-core coil technology, are designed to stabilise voltage and control reactive power under light load conditions, ensuring grid stability and power quality at the utility interface. These solutions are especially relevant for data centres in colder European climates, where power factor correction and voltage regulation are increasingly critical, the company said. The equipment complies with IEC 60076-6 and relevant data centre resilience standards. Dry-type reactors are preferred in sensitive environments due to their lower fire and environmental risk compared to oil-filled alternatives. Manufacturing and testing will take place at Quality Power's ISO-certified coil facility in Sangli, Maharashtra, and the execution of the order will begin immediately, the statement said. About Quality Power The company is a manufacturer of high-voltage electrical equipment and solutions, providing reactors, transformers, line traps, FACTS, and power quality solutions. With multiple manufacturing facilities in India and Turkey, the company has installations in over 100 countries for equipment up to 765kV systems. The company's shares made their D-street debut on February 24, 2025, by listing at Rs 430 per share on the NSE, and Rs 432.05 per share on the BSE, against the IPO issue price of Rs 425 per share.
Business Standard
2 days ago
- Business
- Business Standard
Quality Power Electrical Equipments wins export order of Rs 10 cr
For supply of dry-type Shunt Reactors for a hyperscale data centre project in Finland Quality Power Electrical Equipments has secured a significant export order exceeding Rs 10 crore from a leading European customer for the supply of dry-type Shunt Reactors for a hyperscale data centre project in Finland. This order marks a key milestone in Quality Power's expanding role in supporting power infrastructure for mission-critical digital facilities. Modern data centres, particularly in colder European geographies, are placing increasing emphasis on grid stability, reactive power control, and power factor correction. The dry-type air core Shunt Reactors being supplied under this contract are engineered to mitigate voltage rise and manage reactive power flows under light load conditions, thereby ensuring steady voltage levels at the point of interconnection with utility grids. The selection of Quality Power's advanced coil technology for a hyperscale European data centre underscores the company's technical competence and growing brand recognition in global markets. These reactors are designed in line with IEC 60076-6 and applicable data centre resilience standards and are particularly suited for continuous duty in sensitive environments where oil-filled equipment may not be preferred due to fire and environmental considerations. The reactors will be manufactured and tested at Quality Power's ISO 9001, ISO 14001, and ISO 45001 certified coil facility in Sangli, India. Execution activities shall will commence immediately.
Business Upturn
2 days ago
- Business
- Business Upturn
Quality Power bags Rs 10 crore order for Microsoft data centre project in Finland
By Aditya Bhagchandani Published on July 21, 2025, 17:12 IST Quality Power Electrical Equipments Ltd. (BSE: 544367; NSE: QPOWER), a global provider of high-voltage power products and solutions, announced that it has secured a significant export order valued at approximately ₹10 crore from a leading European customer. The order involves the supply of dry-type Shunt Reactors for a hyperscale data centre project in Finland, which sources indicate is associated with Microsoft. According to the company's regulatory filing with NSE and BSE, the contract is a single large international order, expected to be executed within 12 months. The reactors will be manufactured at Quality Power's certified facility in Sangli, India, which adheres to ISO 9001, ISO 14001, and ISO 45001 standards. These dry-type air core Shunt Reactors are engineered to ensure voltage stability and manage reactive power flows under light load conditions, which are crucial for the reliable operation of hyperscale data centres. Unlike oil-filled equipment, these reactors are designed to meet IEC 60076-6 standards and are suited for sensitive environments, minimizing fire and environmental risks. Mr. Vivek Moroney, President – Operations, commented: 'Securing this order following rigorous technical evaluations by Scandinavian utilities and consultants reaffirms our engineering capabilities and growing presence in global markets. This strategic entry into supplying for large-scale data centre applications strengthens our position internationally.' This milestone reflects Quality Power's ongoing focus on delivering high-reliability coil products that support the energy infrastructure needs of modern digital facilities, particularly in environmentally sensitive and high-performance contexts. The company has clarified that neither its promoters nor any group companies have any interest in the awarding entity, and the transaction does not fall under related-party transactions. For further updates, the company will upload additional details on its website: About Quality Power Electrical Equipments Ltd.: Quality Power is a publicly listed Indian multinational specializing in high-voltage power equipment and advanced power quality solutions. With installations in over 100 countries, it supports utilities and industries with innovative products critical to the global energy transition. Disclaimer: Statements relating to future events and business outlook are forward-looking and subject to risks and uncertainties. Actual results may differ materially. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Mint
15-07-2025
- Business
- Mint
This Quiet Power stock is surging. What does the market know that you don't?
The transmission and distribution (T&D) industry has quietly emerged as one of the hottest infrastructure themes. Within it, high-growth niches like high voltage direct current (HVDC)—which enables long-distance electricity transmission with minimal losses—and flexible alternating current transmission systems (FACTS), designed to enhance grid stability and efficiency, are gaining rapid traction. The domestic market for these segments is expected to grow at an annual rate of 60-65%, expanding from $1.4 billion in 2024 to $9 billion by 2028. Separately, the high-voltage power and power quality market is projected to grow at 18% annually over the same period. Amid this surge in demand for advanced grid infrastructure, companies are scrambling to scale. Among the more compelling success stories is Quality Power, a relatively low-profile but fast-growing player in high-voltage equipment and power quality systems. To fuel its next phase of growth and capture market share in this booming segment, Quality Power launched its ₹859 crore initial public offering (IPO) in February 2025. The stock debuted at ₹432 on 24 February but dropped to ₹274 by 9 April. Since then, it has soared 182% in just three months, closing at ₹773. So, what's driving this rally—and can it sustain? High-voltage play with strong tailwinds Founded 24 years ago, Quality Power manufactures high-voltage electrical equipment and advanced power quality solutions critical for grid connectivity and energy transition. Its products are used in sectors including power, renewables, oil and gas, cement, chemicals, and automobiles. The company also benefits from green energy tailwinds. Its portfolio includes coil products, transformers, capacitor banks, and shunt reactors. With a global footprint across over 100 countries and a client base of more than 210, Quality has grown through both product expansion and acquisitions. Past acquisitions include Endoks, S&S Transformers, EPEC, Nebesky, and, most recently, Mehru. Out of the ₹859 crore raised via IPO, ₹225 crore was earmarked for business expansion— ₹117 crore for the Mehru acquisition, ₹27 crore for machinery purchases, and ₹61 crore for future M&A. Market interest intensified after the company laid out aggressive revenue targets tied to these inorganic efforts and its capacity expansion pipeline. Strong FY25 performance Quality's financials reflect momentum, boosted by industry demand. In FY25, revenue rose 12% year-on-year to ₹337 crore, with power products contributing ₹185 crore (55%) and power quality systems ₹152 crore (45%). The domestic and export mix stood evenly at 50:50. Within power products, coil products, used in HVDC and FACTS, saw significant traction, generating 20-25% margins. As a result, operating margins expanded by 600 basis points to 19% in FY25, up from 13%. Net profit surged 81% to ₹100 crore. This growth was underpinned by rising investment in fixed assets, which grew from ₹34 crore in FY22 to ₹219 crore in FY25. Despite the capital investment, return on capital employed (ROCE) remained strong at 30%, down from 49% in FY22. Return on equity held steady at 26%. The company's balance sheet also reflects financial discipline. Borrowings dropped 77% from ₹38 crore in FY24 to ₹9 crore in FY25. Free cash flow rose from ₹6 crore in FY22 to ₹48 crore in FY25. As of now, the company holds cash reserves of ₹210 crore. Mehru adds scale and reach With a strong balance sheet and momentum in core operations, Quality also made a strategic acquisition to expand product depth and international footprint. In March, Quality acquired a 51% stake in Mehru for ₹120 crore using IPO proceeds. Mehru, a manufacturer of instrument transformers (up to 500 kV), has a strong export presence in Southeast Asia and Africa. The deal expands Quality's portfolio and client base to more than 50 countries and positions it to deliver integrated grid and renewable solutions. In FY25, Mehru posted revenue of ₹256 crore—76% of Quality's consolidated topline. However, since the acquisition closed on 6 March, only ₹18 crore was consolidated into FY25 earnings. As of Q4FY25, Quality's order book stood at ₹750 crore, with Mehru contributing ₹350 crore (47%). The order book is expected to be executed over the next 15 months. Given the full-year consolidation in FY26, Quality expects revenue to double to ₹700-850 crore. However, Mehru's lower PAT margin (12-13%) is expected to drag down consolidated Ebitda margins to 16-18%, from 30% in FY25. FY26 net profit is projected at ₹112-153 crore. The company expects margins to revert to 20% in a few years. Demand is already outpacing supply. Mehru had to forgo orders worth ₹150 crore recently. To meet rising demand, Quality has launched a capacity expansion at Mehru's Bhiwadi facility within a month of acquisition. The expansion includes four new autoclaves and relocating non-critical storage to a warehouse. Capacity will rise 45%, with new capacity online in five months. Order bookings are expected to pick up within six months, with a bid pipeline of ₹400 crore and peak revenue potential of ₹500 crore. Sangli plant to become global coil hub The Sangli unit—Quality's coil manufacturing hub for HVDC and FACTS—operates near full capacity. Notably, Quality is the only Indian firm that manufactures coil products rated at 220 kV and above, a segment with strong demand. These coils currently contribute ₹160 crore to revenue. To capitalise, the company is expanding capacity 9x at Sangli, positioning it among the world's largest coil factories. The new facility is expected to go live in H2FY27 and could deliver peak revenue of ₹1,500 crore. Quality's bid pipeline, including Sangli, stands at ₹1,000 crore, with bookings expected to begin in 6–9 months. Quality is also doubling capacity at its Cochin plant by Q3FY26 to meet HVDC/FACTS demand. A medium-voltage testing lab will be added to enhance quality control and validation. With these expansions, Quality aims to reach peak annual revenue of ₹2,000 crore in four years— ₹500 crore from Mehru alone, assuming no further acquisitions. The workforce is also set to triple in two years, with 1,000 new hires planned soon. Near-term margin pressure is expected due to fixed cost absorption, though the company believes pricing power and demand will offset most of the impact. Valuations rich—but tailwinds strong Quality currently trades at a price-to-earnings (P/E) multiple of 90x—rich by industry standards. By comparison, peers like ABB (65x), Siemens (59x), and Transformers & Rectifiers (71x) trade lower. Only GE Vernova trades higher at 98x. For more such analyses, read Profit Pulse. Despite high valuations, strong demand, expansion visibility, a robust order book, low leverage, and high cash reserves make Quality Power one to watch. The promoters also waived a ₹5 crore dividend payout this year to preserve capital, underscoring their commitment to long-term growth. About the author: Madhvendra has over seven years of experience in equity markets and has cleared the NISM-Series-XV: Research Analyst Certification Examination. He specialises in writing detailed research articles on listed Indian companies, sectoral trends, and macroeconomic developments. Disclosure: The writer does not hold the stocks discussed in this article. The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
Economic Times
05-07-2025
- Business
- Economic Times
IPO Tracker: 70% issues make money in 2025. Check top winners and losers
In 2025, 70% of mainboard IPOs in India are trading above their issue prices, with stocks like Quality Power and Quadrant Future Tek delivering stellar gains. Despite fewer listings and lower fundraising, investor interest remains strong in quality offerings, while large IPOs like HDB Financial and Hexaware also performed well. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads As of July 2025, 26 mainboard IPOs have hit the Indian stock exchanges, painting a mixed yet promising picture of the primary market. Among these 26 IPOs, approximately 18 (nearly 70%) are trading above their issue prices, highlighting solid post-listing momentum. Delving deeper, 12 of these have posted double-digit gains, reinforcing the narrative that investors are favouring fundamentally strong and well-priced to the strength of the debut trend, around 20 IPOs opened at a premium, suggesting continued demand on listing day despite broader market caution. Overall, the 2025 IPO batch may be smaller, but for discerning investors, it's proving to be rich in opportunity and the standout performers, Quality Power Electrical Equipments has emerged as the most remarkable. Despite listing at a 9% discount to its issue price of Rs 425 on February 24, the stock has delivered a massive 75% gain, currently trading at Rs 737. With an issue size of Rs 858 crore, the company has become a major wealth creator for IPO big winner is Quadrant Future Tek Limited , which was listed on January 14, 2025, with an issue size of Rs 290 crore. The stock made an impressive debut with a 53% premium and is now trading approximately 63% above its issue price, cementing its position as the second-best-performing IPO of the IPOs that have registered over 20% gains from their respective issue prices include: Scoda Tubes, Ellenbarrie Industrial Gases, Prostarm Info Systems, Sambhv Steel Tubes, Hexaware Technologies , Standard Glass Lining Technology, and Globe Civil Projects. These listings reflect continued investor appetite for niche and mid-sized companies with strong growth not all IPOs have managed to impress. A few have seen sharp declines post-listing. Stocks such as Arisinfra Solutions , Capital Infra Trust, and Indo Farm Equipment have dropped over 20% from their respective issue prices. The case of Indo Farm Equipment is particularly noteworthy—it was listed with an initial premium of nearly 30%, but failed to maintain momentum, resulting in significant losses for investors who held onto their the relatively lower volume of listings, a few large-cap IPOs dominated the fundraising charts. Leading the pack is HDB Financial Services Ltd , which went public on July 2, 2025, raising a whopping Rs 12,500 crore—the largest IPO of the year. The stock listed with a 14% premium at Rs 841 and has since climbed to Rs 865, delivering a 17% gain from its issue price of Rs major offering was from Hexaware Technologies, which raised Rs 8,759 crore. The stock debuted with an 8% premium and is currently trading at Rs 867, marking a 23% return from its issue price of Rs individual IPO returns were encouraging, the total fundraising activity in 2025 has seen a significant dip. So far, companies have raised Rs 45,375 crore via IPOs, which is substantially lower than the Rs 1.60 lakh crore raised in Calendar Year 2024. The sharp decline highlights growing caution among issuers, likely influenced by macroeconomic uncertainty, volatile market conditions, and tighter investor summary, CY2025 has been a mixed year for the IPO market. On the one hand, investors have benefited from strong post-listing gains in a majority of IPOs, reinforcing the importance of quality selection. On the other hand, the marked slowdown in capital mobilisation signals hesitancy among large issuers. As market dynamics evolve, the second half of 2025 will be crucial in determining whether this IPO revival sustains or cools further. For now, quality-driven investing and cautious optimism remain the key themes in India's IPO landscape.
