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Quadrant Future Tek Ltd
NSE: QUADFUTURE BSE: 544336 INE0LRY01011 Industrials Industrial Products 🔎 Screen
₹1,384 Cr
Market Cap
P/E
PEG
-15.8%
ROCE
-15.4%
ROE
0.09
D/E
-28.7%
OPM
+31.1%
% from 52W High
57
α RS
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📈 Price History
Ratio Health
Excellent
Good
Average
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By Category
Shareholding
About

Incorporated in 2015, Quadrant Future- Tek Ltd manufactures specialty cables and develops train control & signalling systems

✓ Strengths 2
  • Company has reduced debt.
  • Company is almost debt free.
! Concerns 5
  • Stock is trading at 5.37 times its book value
  • Company has low interest coverage ratio.
  • Company has a low return on equity of -10.4% over last 3 years.
  • Company has high debtors of 160 days.
  • Working capital days have increased from 183 days to 392 days
Key Ratios Snapshot
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📈 Growth Pattern
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Mixed quarter: strong 70% QoQ revenue recovery driven by Specialty Cables, but overall EBITDA still negative (-₹5.9 Cr) and YoY revenue declined 3% quarter Investor Presentation One-Pager? Mar 2026
Revenue
₹56.6 Cr
+70% QoQ, -3% YoY
EBITDA Margin
-10.4%
Improved from -30.3% in Q3 but still negative
PAT
₹1.1 Cr
vs -₹14.7 Cr loss in Q3
KAVACH Order Book
₹805.4 Cr
Strong visibility for next fiscal
What Went Right
  • Revenue grew 70% QoQ to ₹56.6 Cr, led by Specialty Cables traction in Railways & Defence
  • Specialty Cables EBITDA improved 94% QoQ to ₹5.2 Cr, demonstrating margin recovery in the core business
  • KAVACH order book stands at ₹805.4 Cr, providing multi-year revenue visibility
  • RDSO approval received to commence passenger trials for KAVACH 4.0, final certification stage
  • IPO proceeds of ₹267.1 Cr deployed, strengthening balance sheet (net debt reduced significantly)
What to Watch
  • Overall EBITDA remained negative at -₹5.9 Cr due to high fixed costs and continued investment in TCAS division
  • Revenue declined 3% YoY in Q4, indicating uneven demand in legacy cable business
  • Full-year cost of materials jumped 77% YoY to ₹189.4 Cr, outpacing revenue growth and compressing gross margins
  • Inventory ballooned to ₹105.4 Cr (₹44.5 Cr as of Mar-25), tying up working capital and raising execution risk
  • PAT of ₹1.1 Cr is negligible relative to the scale of operations; adjusted for deferred tax benefit (₹12.5 Cr credit), underlying pre-tax loss widened to -₹11.4 Cr
Investor Lens
The thesis remains anchored to KAVACH commercialization, which took a step forward with passenger trial approval, but execution risk persists until final RDSO certification and revenue conversion. Meanwhile, the Speciality Cables business is showing mixed signals – QoQ recovery is encouraging, but YoY decline and elevated inventory suggest demand isn't stable. The negative EBITDA and bloated working capital are concerns; investors should watch free cash flow and order book conversion in the next two quarters. The core opportunity in railway modernisation is intact, but near-term financials remain under pressure from upfront TCAS costs.
From investor presentation · AI-generated analysis · Not investment advice
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📊 MIXED Revenue jumps 70% QoQ but falls 3% YoY; operating loss deepens
Revenue
Revenue of ₹56.6 Cr in Mar 2026 is down 3.3% YoY from ₹58.5 Cr, but up 70% QoQ from ₹33.3 Cr in Dec 2025. The sequential recovery is notable, but year-on-year decline indicates underlying weakness.
Profitability
Net profit fell 27.8% YoY to ₹1.1 Cr (EPS ₹0.28) from ₹1.5 Cr (EPS ₹0.40). The profit is entirely driven by a huge tax credit (tax rate -110%), as PBT was a loss of ₹11.4 Cr. Without this tax benefit, the quarter would have been deeply loss-making.
Margins
Operating profit margin turned deeply negative at -10.25%, compared to 2.10% in Mar 2025 and -31.79% in Dec 2025. The operating loss of ₹5.8 Cr signals severe cost or margin pressure even as revenue grew sequentially.
Cash Flow
Balance Sheet
Borrowings are low at ₹24 Cr against reserves of ₹218 Cr, giving a debt-to-equity ratio of just 0.09. Total assets of ₹321 Cr are well covered by equity, indicating a strong balance sheet with minimal leverage.
Key Risks
1. Operating losses continue despite revenue growth, eroding core profitability. 2. Net profit is entirely dependent on tax credits, which are non-recurring. 3. Revenue is still below year-ago levels, indicating demand or market share challenges.
Outlook
The strong QoQ revenue recovery provides a positive signal, but the company must translate this into operating profits. Sustained improvement in margins and a return to YoY growth will be critical for long-term health.
Generated by AI · Mar 2026 results · Not investment advice
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