Quadrant Future Tek Limited reported a net loss of ₹429.42 million for the financial year ended March 31, 2026, widening from a loss of ₹196.75 million in the previous year. Revenue from operations for the year increased to ₹1,529.67 million from ₹1,506.12 million in FY25. The board approved the audited financial results for the quarter and year ended March 31, 2026, at its meeting held on May 27, 2026. The company published the audited financial results in newspapers, Business Standard (English) and AJ DI Awaaz (Punjabi), on May 29, 2026, pursuant to Regulation 30 and 47 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company's statutory auditors, M/s. Sanmarks & Associates, issued an unmodified opinion on the financial results. However, the auditors drew attention to an emphasis of matter, noting that the company incurred a cash loss of ₹310.22 million during the year. This indicates that operational revenues were insufficient to meet operational cash expenditures, representing an aggravation of the financial position compared to the previous year where financial loss was absorbed by non-cash charges.

Quarterly Performance

For the quarter ended March 31, 2026, the company reported a net profit of ₹11.41 million, compared to a profit of ₹15.80 million in the same quarter of the previous year. Revenue for the quarter stood at ₹565.57 million, declining from ₹585 million in the corresponding quarter of the prior year. EBITDA for the quarter swung to a loss of ₹58 million, compared to a gain of ₹12 million in the same period last year, reflecting increased pressure on operating profitability. The board also re-appointed M/s. Anand Narang & Associates, Chartered Accountants, as internal auditors for the financial year 2026-27 based on the Audit Committee's recommendation.

The table below summarises the key quarterly metrics on a year-on-year basis:

Financial Performance for FY26

The full-year financial results reflect a significant deterioration in profitability, driven by rising total expenses. Total expenses for the year increased to ₹2,140.78 million from ₹1,791.48 million in the prior year, outpacing the modest growth in revenues. The following table presents the key annual financial metrics:

Segment Performance

The company operates in two reportable segments: Cable Division and TCS Division (Train Collision Avoidance System). The Cable Division reported a segment profit before exceptional items of ₹44.94 million for the year, while the TCS Division reported a loss of ₹602.27 million. The TCS division's performance significantly impacted the overall profitability, with the division incurring losses across interest, depreciation, and operational costs.

The trading window for designated persons and their immediate relatives remains closed since April 1, 2026, in accordance with the company's Code of Conduct for Prevention of Insider Trading. The window will reopen 48 hours after the declaration of financial results.

Quadrant Future Tek delivered a robust sequential revenue growth of 70% in Q4FY26, primarily driven by sustained momentum in its Specialty Cables business. The company reported this performance alongside the commencement of passenger trials for its Kavach 4.0 Automatic Train Protection System, following approval from Indian Railways (RDSO). This milestone marks the final stage in the approval process ahead of commercial deployment, supported by the allocation of a dedicated rail route and train for field trials.

Kavach 4.0 Trial Progress

The transition to passenger trials represents the last procedural step before the commercial launch of the Kavach 4.0 system. Indian Railways has assigned a specific locomotive and track section for real-world testing. An Independent Safety Assessment (ISA) interim report has already been issued, confirming satisfactory progress in implementing quality and safety management processes in adherence to CENELEC SIL-4 standards.

Order Book and Strategic Position

Quadrant Future Tek maintains an active order book of ₹8,054 million in its Train Collision Avoidance System (TCAS) segment. The company has secured multiple orders from RailTel and Indian Railways’ locomotive production units for deploying KAVACH systems on low-density railway sections and on-board locomotives. This order intake reinforces the company's end-to-end capabilities in design, manufacturing, installation, and commissioning.

Business Overview and Growth Drivers

The company operates across two primary verticals: Specialty Cables and Train Collision Avoidance Systems. Its manufacturing facility in Basma, Mohali, is backward integrated with in-house labs and a 2.5 MeV Electron Beam Accelerator. The facility has a production capacity of 1,900 MT per annum for Specialty Cables and the capability to manufacture ~2,200 locomotives and ~4,500 station units per annum for TCAS. The company’s competitive edge includes in-house design and manufacturing for both hardware and software, meeting CENELEC SIL-4 safety standards.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE0LRY01011/d1f9675aadea43ad.pdf