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 Limited has filed a writ petition before the Hon'ble High Court of Punjab & Haryana at Chandigarh challenging an order issued by the Regional Director (Northern Region), Ministry of Corporate Affairs. The petition was filed on May 20, 2026, and contests the order dated January 30, 2026, which concerns adjudication proceedings initiated by the Registrar of Companies regarding private placement compliance under Section 42 of the Companies Act, 2013.

The company disclosed that the Regional Director's order upheld a penalty under Section 42(6) of the Companies Act, 2013, while the penalty under Section 42(10) was set aside. The Board believes the order is erroneous and that filing the writ petition is in the best interests of the company and its stakeholders. The legal matter is currently pending adjudication before the High Court.

Financial Implications

The company has outlined the potential financial impact resulting from the litigation. The quantifiable financial exposure is subject to the outcome of the writ petition. The company stated that it does not expect any material impact on its day-to-day operations while the petition is pending disposal.

Litigation Details

The opposing parties in the litigation include the Union of India through the Ministry of Corporate Affairs, the Regional Director (Northern Region-II), and the Registrar of Companies & Adjudication Officer (Punjab & Chandigarh). The dispute centers on the penalty upheld by the Regional Director, which the company is now seeking to overturn through the High Court.