Quadrant Future Tek Ltd

Segment reporting revision

• Typographical error identified in Segment Assets and Segment Liabilities in Q1 2026 segment reporting.
• Revisions are clerical/formatting corrections and do not impact revenue, profit, EPS, or other key financials.
• Only the revised segment reporting section reflects changes; all other disclosures remain unchanged.

Business & Segments

• Two segments: Specialty Cables and Train Control & Signalling (KAVACH).
• Indigenisation and Make in India focus with backward integrated Mohali manufacturing.

Operational Highlights

• Q1 FY27 revenue ₹406 Mn, up 41.3% YoY, led by Railways and Defence.
• Specialty Cables EBITDA ~₹41 Mn, up ~59% YoY.
• KAVACH order book ₹8,054 Mn; revenue visibility from onboard and trackside deployments.
• RDSO approval to commence passenger trials for KAVACH 4.0.
• MoU with RailTel to jointly market and implement KAVACH in India.
• Capacity: Specialty Cables ~1,900 MT per annum; room for higher utilization.
• Diversification into Solar, EV, and Submarine cables; BIS approval for Solar cables.
• R&D and Certifications: NABL lab; SIL-4, DGQA, BIS compliance.
• KAVACH 4.0 development: onboard hardware/software; field trials planned.

Financial Performance

• Income from operations ₹406 Mn; total income ₹410 Mn in Q1 FY27.
• Cost of materials ₹314 Mn; EBITDA −₹29 Mn; EBIT −₹65 Mn; PAT −₹91 Mn.
• Q1 FY27 EBITDA improved versus prior quarter, reflecting growth investments.

Capital & Liquidity

• IPO proceeds raised ~₹1,305 Mn from marquee investors; used for WC and EI capex.
• Balance sheet strengthened by IPO proceeds; total IPO proceeds to date ~₹2,900 Mn.

Strategic Outlook

• KAVACH 4.0 passenger trials approved; deployment contingent on certification.
• Indian Railways to invest heavily; trackside and onboard deployments expanding.
• MoU with RailTel positions Quadrant as preferred ATP deployment partner.
• Diversified revenue through Solar, EV, and submarine cables; export opportunities rising.
• Capacity expansion to ~1,900 MT/year; potential for higher utilization and operating leverage.
• R&D strengths to support KAVACH 4.0 and EI growth.

Governance

• Key leadership: Mohit Vohra (MD); Vishesh Abrol (WTD); Independent Chairman Amrit Randhawa.
• IPO proceeds and investments indicate governance oversight of capital allocation.

Issue overview

• IPO: equity shares; issue size 290 crore; deviation Nil.
• Objects include issue-related expenses, long-term working capital, EIS capex, loan repayment, GCP.
• Utilisation largely per offer document; no material deviation.

Utilisation of proceeds

• All objects utilised as disclosed; no material deviations observed.
• EIS: capital expenditure partially utilized; remaining funds idle due to delays.
• Total unutilized proceeds: 22.73; funds parked in fixed deposits.
• GCP: fully utilised; no residual GCP allocations.
• Approvals: all statutory approvals obtained; final KAVACH approval pending from RDSO.
• R&D and safety investments ongoing; FY26 net loss reported.

Governance and compliance

• Approvals obtained for stated objects; Railways field trials approved; KAVACH final approval pending from RDSO.
• KAVACH project risk; ongoing losses due to upfront R&D; final approval pending could affect viability.
• Delays in EIS deployment due to shift toward commercial approvals; management expects deployment in upcoming period.

General Corporate Purpose (GCP)

• GCP allocated amount fully utilized; board-approved reallocation to GCP.
• No remaining GCP funds; objective completed.

Fund utilisation deviation details

• Purpose: No deviation or variation in IPO funds for quarter ended 30-06-2026.
• Mode of fund raising: Public Issues.
• Date of raising funds: 10-01-2025; Amount raised: 2900.00 million.
• Monitoring agency: CARE.
• Deviation status: No deviation.
• Audit Committee: No comments.
• Auditors: No comments.
• Funds utilisation status: Partly utilised.
• Unutilised funds: 227.30 million as of 30-06-2026.
• Original vs modified allocations: Nil deviation reported.

Financial highlights

• Revenue from operations: Rs 405.88 million in Q1 FY27.
• Total income: Rs 410.35 million in the quarter.
• Profit after tax to equity holders: Rs 91.32 million.
• Basic EPS: Rs -2.29; Diluted EPS: Rs -2.26.
• Unaudited results reviewed by Audit Committee.

Cash loss & liquidity

• Quarter cash loss: Rs 25.71 million.
• Going concern basis maintained; management addressing cash losses.

IPO proceeds utilization

• IPO proceeds raised: Rs 2,900 million; utilised Rs 2,672.79 million.
• Unutilised IPO funds: Rs 227.21 million.
• Utilisation: Rs 1,497.22 million for working capital; Rs 243.75 million capex.
• Rs 236.06 million for loan prepayment; Rs 650.65 million for general corporate purposes.
• IPO-related expenses: Rs 272.32 million.

Corporate actions

• Re-appointment of M/s SDM & Associates as Cost Auditors for FY2026-27.

AGM planning

• 11th AGM on 25 Sep 2026; cut-off date 18 Sep 2026.
• Remote e-voting from 22–24 Sep 2026.
• Scrutinizer: M/s Girish Madan & Associates.

Other notable items

• Kutch Copper Ltd MTM demand: Rs 5.52 crore; under settlement.
• First quarter FY27 results prepared on going concern basis; cash loss emphasized by auditor.

Dematerialisation processing and listing status

• Dematerialisation requests processed; securities confirmed to depositories.
• Dematerialised securities listed on the stock exchanges where earlier issues are listed.
• Certificates received for dematerialisation mutilated and cancelled; depository name substituted as registered owner within timelines.

Business

• Specialty Cables and Train Control and Signalling are the two core businesses.
• KAVACH 4.0 development remains central to the rail safety strategy.

Operational

• RDSO approved passenger trials for KAVACH 4.0.
• Dedicated rail route and train were allocated for final field trials.
• Order book reached about ₹8,054 million in TCAS and ₹558 million in Specialty Cables.
• Specialty Cables revenue rose 70% sequentially in Q4 FY26, driven by Railways and Defence.

Financials

• Q4 FY26 revenue was ₹566 million, down 3% year-on-year and up 70% sequentially.
• FY26 revenue was ₹1,530 million, up 2% year-on-year.
• Q4 FY26 EBITDA was a loss of ₹59 million versus ₹35 million last year.
• FY26 EBITDA was a loss of ₹340 million versus profit of ₹26 million last year.
• FY26 PAT was a loss of ₹429 million versus loss of ₹197 million last year.
• Cash and financial assets fell to ₹1,001 million from ₹2,430 million.

Capital

• Current borrowings reduced to ₹46 million from ₹631 million.
• Equity share capital remained unchanged at ₹400 million.
• IPO proceeds of ₹2,671 million were largely deployed, leaving ₹228 million balance.
• ₹1,305 million was raised from marquee investors.

Outlook

• Management expects swift deployment after successful KAVACH trials and final certification.
• ₹244 million is earmarked for Electronic Interlocking development.
• Specialty Cables capacity of about 1,900 MT offers utilization upside.
• Expansion into solar, EV, and submarine cables is intended to diversify revenue.

Risks

• Railway approvals and successful field trials remain critical to KAVACH commercialization.
• Commodity price swings can affect cable margins, partly mitigated by backward integration.

Governance

• Mohit Vohra is Managing Director.
• Satish Gupta is Independent Chairman.
• The board includes multiple whole-time and independent directors.