Q2 FY27 results analysis · October 31, 2026
QPOWER Q2 FY27 Results Analysis: EBITDA Surges 70%, Order Book Tops Rs. 2,000 Cr
+80.1%PAT year on year, Rs. 633.27 Cr
Source: Quarterly results filing (BSE)
Quick summary
QPOWER reported Q2 FY27 numbers with revenue of Rs. 2,725.28 Cr (+32.45% YoY) and PAT growth of +80.07% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | October 31, 2026 |
|---|---|
| Revenue (Q2) | Rs. 2,725.28 Cr (+32.45% YoY) |
| PAT (Q2) | Rs. 633.27 Cr (+80.07% YoY) |
| EBITDA margin | 28.62% (+607 bps YoY) |
| EPS (Q2) | Rs. 5.48 (+74.50% YoY) |
Quarter Snapshot
Q2 FY27 delivered revenue growth of 32.45% YoY and EBITDA growth of 70.28% YoY with margin up ~607 bps to 28.62%, running well ahead of management's own FY27 guidance of +20% revenue growth and 'high teens or around 20%' EBITDA margin. The order book surpassed Rs.2,000 Cr with visibility into FY2028, and new capacity (Sangli coil factory, Niğde PCS) plus the Winwin acquisition and Rs.700 Cr QIP are on stated timelines. The main caveat is cash conversion — H1 CFO/PAT of 0.064x on a deliberate Rs.103.20 Cr inventory build — while normalized PAT of Rs.60.17 Cr (+71.1% YoY) confirms the operating trend is real.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue vs the 20% FY27 checkpoint | "in line to ahead on the YoY checkpoint" — demand "no visible rollover" | +32.45% YoY; H1 +32.09% | Played out |
| Margins | "compressing at the Mehru line, broadly protected at the QP line" | Consolidated EBITDA margin ex-29 27.32% vs 28.3% Q1 ex-29 — broadly held; Mehru line not observable | Partially |
| Ind AS 29 item | "expect another non-cash Ind AS 29 net monetary loss (Q1: Rs.78.2 Mn)" | Filing records a net monetary gain of Rs.38.30 Mn — the filing wins; the discrepancy is noted | Contradicted |
| Aluminium pass-through | Q3 FY27 event; "Q2 margins should be largely insulated" | No Q2 margin blowup; gross ratio improved YoY | Played out |
| Watch: Sep-30 order book / ≥95% execution test | — | Board letter gives ">Rs.2,000 Cr" only — remains open for the call | Not addressed in the filing |
| Watch: Mehru margin vs ~18% guide | — | Entity margins not disclosed — remains open for the call | Not addressed in the filing |
| Watch: Ind AS 29 bridge | smaller charge expected | Gain of Rs.3.83 Cr disclosed | Answered |
| Watch: promoter bridge 9% cost in Q2 finance costs | post-quarter approval | Borrowings Rs.39.80 Cr vs Rs.35.48 Cr; finance costs Rs.2.93 Cr — no bridge cost yet | Partially answered |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 consolidated revenue growth +20% | Q1 FY27 earnings call, Aug 10, 2026 ("We have guided to 20% at this moment… Maybe at Q3, we can look at revising") | H1 +32.09% YoY; Q2 +32.45% YoY | On Track |
| FY27 EBITDA margin "high teens or around 20%" | Q1 FY27 earnings call, Aug 10, 2026 ("Please model us at 20% or high teens EBITDA. We will always try to deliver better") | 28.62% company-basis (27.32% ex-Ind AS 29); H1 27.04% | On Track |
| Group revenue growth +50% | Q1 FY27 earnings call / Q4 FY26 call | Not yet testable | Too Early |
| Winwin completion by Mar 31, 2027 (up to Rs.272.34 Cr) | Board meeting Sept 23, 2026; board letter Oct 31, 2026 | Shareholder approval secured Oct 19, 2026; regulatory approvals pending | On Track |
| QIP up to Rs.700 Cr | Board meeting Sept 23, 2026; EGM Oct 19, 2026 | Approved; preferential listing to precede QIP | On Track |
| Growth "despite continued volatility in raw material prices" | Board meeting, Oct 31, 2026 | Revenue +32.45% YoY with the gross cost-of-production ratio improving to 58.6% of revenue from 63.7% | Confirmed |
| Q3 FY27 aluminium pass-through flagged (~6-month lag, 20–25% hedged) | Prior concall commentary | Not testable in Q2; Q2 margin did not show the spike | Too Early |
| Backlog "provides execution visibility into FY2028" | Prior concall | Order book now above Rs.2,000 Cr per board letter (from Rs.194.55 Cr… i.e. Rs.1,945.5 Cr at Jun 30) | Confirmed |
Key Numbers, Quarter by Quarter
| Metric | Prior quarters | Q2 FY27 |
|---|---|---|
| Order book (consolidated) | Rs.1,945.5 Cr (Jun 30, 2026); Rs.1,406 Cr (Mar 31, 2026) | > Rs.2,000 Cr (board letter; excludes pending WSIL orders); exact figure not disclosed |
| Capacity utilization | >100% (FY26) | Not disclosed in the filing |
| Endoks constant-currency EBITDA margin | ~32% (FY26) | Not disclosed in the filing |
Key Investment Insights
Key Positives
- Consolidated revenue grew 32.45% YoY to Rs.2,725.28 Cr and 17.13% QoQ
- EBITDA grew 70.28% YoY to Rs.840.4 Mn-equivalent Rs.84.04 Cr with margin up ~607 bps YoY to 28.62% (27.32% ex-Ind AS 29)
- PAT (net of NCI) grew 80.07% YoY to Rs.633.27 Cr; normalized PAT Rs.60.17 Cr, +71.1% YoY
- H1 revenue growth of 32.09% is running ahead of management's FY27 +20% growth guidance
- EBITDA margin of 28.62% exceeds management's stated 'high teens or around 20%' guidance
- Consolidated order book surpassed Rs.2,000 Cr (from Rs.1,945.5 Cr at Jun 30, 2026), excluding pending WSIL joint orders
- Gross cost-of-production ratio improved to 58.6% of revenue from 63.7% YoY
- New capacity commissioned in October 2026: Global Coil Factory, Sangli and Endoks PCS facility, Niğde
Risk Factors
- H1 FY27 CFO/PAT of 0.064x and CFO/EBITDA of 0.048x reflect weak cash conversion
- FCF was negative Rs.56.51 Cr in H1 FY27 on a Rs.103.20 Cr inventory build and Rs.84.30 Cr cash drawdown
- NCI absorbs 32.99% of consolidated PAT (Rs.208.91 Cr), trimming owners' PAT growth to 74.44% from 80.07%
- Purchase of traded goods jumped Rs.74.77 Cr YoY, a mix shift that mechanically lowers the materials ratio
- Effective tax rate fell to 17.44% from 23.21% QoQ, flattering PAT growth; Ind AS 29 net monetary gain of Rs.3.83 Cr added Rs.3.16 Cr to PAT
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.