Shares of Quality Power Electrical Equipments Ltd hit the 5 percent upper circuit on Wednesday after the company signed a term sheet to acquire Winwin Speciality Insulators Ltd (WSIL).
The stock rose to Rs 1,190, compared with the previous close of Rs 1,133. The company has a market capitalization of Rs 8,835 crore and trades at a P/E ratio of 74.1, compared with the industry average of 36.3.
Rs 315 crore acquisition
Quality Power plans to acquire a 100 percent stake in WSIL at an enterprise value of around Rs 315 crore.
The transaction is subject to:
- Due diligence.
- Regulatory approvals.
- Customary closing conditions.
The company expects the acquisition to be completed within three months.
Expansion in high-voltage equipment
The acquisition is expected to strengthen Quality Power’s presence across the power transmission value chain.
WSIL operates a manufacturing facility at Atchutapuram SEZ in Visakhapatnam.
The facility has:
- Ceramic insulator manufacturing capacity of around 18,000 MTPA.
- Capability to produce ceramic insulators up to 1,200 kV.
- Polymeric insulator production capacity up to 400 kV.
- Compliance with IEC, ANSI and IS standards.
The plant is spread across 47.7 acres and has access to:
- Visakhapatnam Port.
- Gangavaram Port.
The company said the location provides export and logistics advantages, along with scope for future expansion.
Established brand with global presence
The acquisition will add the WS Insulators brand, which was established in 1961.
According to the company, the brand serves utilities, OEMs and EPC companies in around 55 countries.
The business also brings:
- Customer approvals.
- Type-test certifications.
- Utility qualifications.
- Field-performance records.
Growth strategy
Management said the transaction aligns with rising investments in:
- Transmission networks.
- Substations.
- HVDC corridors.
- Renewable energy evacuation infrastructure.
- Grid modernization projects.
The deal follows Quality Power’s acquisitions of:
- Mehru Electrical and Mechanical Engineers.
- Sukrut Electric Company.
Both transactions were completed in 2025.
Financial performance
Year-on-year performance
- Revenue increased 160.2 percent to Rs 281 crore, from Rs 108 crore.
- Operating profit rose 87.5 percent to Rs 30 crore, from Rs 16 crore.
- Net profit climbed 70 percent to Rs 51 crore, from Rs 30 crore.
Quarter-on-quarter performance
- Revenue declined 1.1 percent to Rs 281 crore, from Rs 284 crore.
- Operating profit fell 62 percent to Rs 30 crore, from Rs 79 crore.
- Net profit declined 19 percent to Rs 51 crore, from Rs 63 crore.
About the company
Quality Power Electrical Equipments Ltd manufactures high-voltage power transmission and energy transition equipment.
Its products include:
- Reactors.
- Transformers.
- Power quality systems.
- Grid connectivity equipment.
The company supplies utilities, OEMs and EPC players in domestic and overseas markets.
TL;DR
Quality Power Electrical Equipments hit the 5 percent upper circuit after signing a term sheet to acquire Winwin Speciality Insulators for Rs 315 crore. The acquisition will add high-voltage insulator manufacturing capabilities and strengthen the company’s position in the transmission equipment market.
AI Summary
- Quality Power plans to acquire Winwin Speciality Insulators for Rs 315 crore.
- The stock rose 5 percent following the announcement.
- WSIL has ceramic insulator capacity of 18,000 MTPA.
- The business serves customers across 55 countries.
- The transaction is expected to close within three months.
