Quest Capital Markets Reports Mixed Q2 Results with Revenue Dip and Profit Growth

Quest Capital Markets Limited , a prominent player in the Indian financial sector, has announced its unaudited financial results for the second quarter and half-year ended September 30, 2025, revealing a mixed performance with a slight dip in revenue but an increase in profitability.

Financial Highlights

The company reported a total revenue from operations of Rs 416.35 lakhs for Q2 FY2026, compared to Rs 446.90 lakhs in the previous quarter, marking a decrease of about 6.8%. However, for the half-year ended September 30, 2025, the total revenue stood at Rs 863.25 lakhs.

Despite the revenue decline, Quest Capital Markets demonstrated improved profitability. The net profit for Q2 FY2026 was Rs 272.84 lakhs, up from Rs 229.47 lakhs in Q1 FY2026, representing an increase of approximately 18.9%. For the six-month period, the company achieved a net profit of Rs 602.84 lakhs.

Key Financial Metrics

Particulars (Rs. in lakhs)	Q2 FY2026	Q1 FY2026	H1 FY2026
Revenue from Operations	416.35	446.90	863.25
Net Profit	272.84	229.47	602.84
Earnings Per Share (Rs.)	0.76	1.54	2.30

The company's balance sheet remains robust, with total assets standing at Rs 92,523.88 lakhs as of September 30, 2025. The earnings per share (EPS) for the quarter was Rs 0.76, compared to Rs 1.54 in the previous quarter.

Management Commentary

The Board of Directors approved the results at a meeting held on November 11, 2025. The financial statements were reviewed by the Audit Committee and underwent a limited review by V. Singhi Associates, Chartered Accountants.

Investor Insights

While the quarter-on-quarter revenue decline may raise some concerns, the improved profitability suggests effective cost management and operational efficiency. Investors may want to keep an eye on the company's ability to maintain this profit growth trend in the face of revenue challenges.

The company's strong asset base and consistent dividend policy (as evidenced by the Rs 250 lakhs paid in dividends during the half-year) may provide some reassurance to long-term investors.

Quest Capital Markets continues to operate in a single reportable segment, as per Ind AS 108 - 'Operating Segments', which may indicate a focused business strategy.

As the financial landscape evolves, Quest Capital Markets' performance in the coming quarters will be crucial in determining its ability to navigate market challenges and capitalize on growth opportunities in the Indian financial sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.02%	-2.38%	+4.61%	-13.57%	-28.42%	+35.46%

Quest Capital Markets Limited has acquired a 0.23% stake in PCBL Chemical Limited, India's largest carbon black manufacturer, through the conversion of warrants. This move strengthens Quest Capital Markets' position within the PCBL promoter group and provides PCBL with additional capital for debt repayment and working capital needs.

Transaction Details

Aspect	Details
Acquirer	Quest Capital Markets Limited
Target Company	PCBL Chemical Limited
Shares Acquired	12,00,000 equity shares
Price per Share	Rs. 280.00
Total Transaction Value	Rs. 33.60 crores
Acquisition Method	Conversion of warrants allotted on preferential basis
Acquisition Date	November 3, 2025
Post-Issue Stake	0.2299% of PCBL's paid-up share capital

About PCBL Chemical Limited

PCBL Chemical Limited, established in 1960, has a rich history in the chemical industry. The company has expanded its manufacturing footprint across India with facilities in West Bengal, Gujarat, Kerala, and Tamil Nadu.

Financial Metric	FY 2024-25
Turnover (Rs. crores)	5,904.63
Consolidated Revenue (Rs. crores)	8,404.00

Transaction Implications

Related Party Transaction: Quest Capital Markets falls under the promoter group of PCBL Chemical Limited, making this a related party transaction conducted on an arm's length basis.
Use of Proceeds: The funds raised will be utilized for debt repayment of PCBL and its subsidiaries, as well as for working capital and general corporate purposes.
Regulatory Compliance: The transaction complies with relevant sections of the Companies Act, 2013, and applicable SEBI regulations.
Strategic Growth: This acquisition aligns with PCBL's business requirements and growth objectives, potentially strengthening its market position in the chemical industry.

Industry Context

PCBL Chemical Limited operates in the chemical industry, with a focus on carbon black manufacturing. The company's recent acquisition of Aquapharma Chemical has also positioned it as a significant player in the performance chemicals space, particularly in phosphonate production.

This transaction reflects ongoing consolidation and strategic investments within India's chemical sector, as companies seek to strengthen their market positions and financial capabilities in a competitive global environment.

Conclusion

The acquisition by Quest Capital Markets Limited demonstrates continued confidence in PCBL Chemical Limited's growth prospects. As PCBL expands its operations and diversifies its product portfolio, this infusion of capital could play a crucial role in supporting its strategic initiatives and maintaining its leadership position in the carbon black market.