Quest Laboratories FY26 net profit rises 10.7% to ₹1,501.74 lakh
Quest Laboratories Limited reported a net profit of ₹1,501.74 lakh for FY26, a 10.7% increase from the previous year. Revenue rose to ₹11,182.18 lakh. The auditors issued an unmodified opinion but noted an inability to verify inventory valuation due to insufficient records.
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Quest Laboratories Limited reported a net profit of ₹1,501.74 lakh for the financial year ended March 31, 2026, representing a 10.7% increase compared to the previous year's ₹1,356.64 lakh. Revenue from operations for the year stood at ₹11,182.18 lakh, up from ₹10,396.58 lakh in FY25. The Board of Directors approved the audited standalone financial results during its meeting held on May 29, 2026.
The company’s total income for FY26 was ₹11,436.23 lakh, compared to ₹10,820.97 lakh in the prior year. Total expenses increased to ₹9,625.58 lakh from ₹8,952.55 lakh in FY25. Profit before tax for the year was ₹1,810.65 lakh, slightly lower than the ₹1,868.42 lakh recorded in the previous year. The basic and diluted earnings per share for the year were ₹9.16, up from ₹8.28 in the previous year.
Auditor's Observations
The statutory auditors, C.H. Padliya & Co., issued an audit report with an unmodified opinion. However, the report included an emphasis of matter regarding the valuation of inventory. The auditors stated they could not verify the valuation of inventory as of the Balance Sheet date due to insufficient records provided. Management informed the auditors that physical verification was conducted during the year without noticing major discrepancies.
Financial Position
The company’s total assets as of March 31, 2026, stood at ₹11,115.04 lakh, a decrease from ₹12,164.87 lakh in the previous year. Equity share capital remained unchanged at ₹1,638.72 lakh, while other equity increased to ₹8,043.47 lakh from ₹6,541.73 lakh. Borrowings, both non-current and current, decreased significantly to ₹788.53 lakh from ₹3,025.78 lakh in the prior year.
Cash Flow and Investments
Net cash flow from operating activities was negative at ₹1,071.61 lakh, compared to a negative outflow of ₹2,332.54 lakh in FY25. The company generated a positive net cash flow from investing activities of ₹3,493.67 lakh, primarily driven by the sale of investments. Cash and cash equivalents at the end of the year stood at ₹10.48 lakh.
Key Financial Metrics for FY26
| Metric | Amount (₹ in lakh) | Previous Year (₹ in lakh) |
|---|---|---|
| Revenue from operations | 11,182.18 | 10,396.58 |
| Net profit | 1,501.74 | 1,356.64 |
| Total income | 11,436.23 | 10,820.97 |
| Total expenses | 9,625.58 | 8,952.55 |
| Earnings per share (Basic) | 9.16 | 8.28 |
Historical Stock Returns for Quest Laboratories
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.25% | -16.86% | -33.50% | +13.51% | +17.61% | -31.56% |
How will management address the auditor's concerns regarding inventory valuation records to prevent future audit qualifications?
With borrowings significantly reduced, what are the company's plans for utilizing its improved balance sheet leverage for future growth?
Will the positive cash flow from investing activities driven by asset sales continue, or has the company exhausted its saleable investments?
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