According to the latest financial results approved by the Board on August 11, 2026, Quest Capital Markets experienced a significant decline in profitability during Q1 FY2026. The company's standalone net profit dropped 52.8% to ₹72.51 lakh compared to ₹153.63 lakh in the corresponding quarter of the previous year. This substantial profit decline reflects challenging market conditions or operational challenges faced by the company during the quarter, with the results reviewed by the Audit Committee and subjected to a limited review by statutory auditors V. Singhi & Associates who issued an unmodified opinion. The Earnings Per Share (EPS) declined to ₹0.73 from ₹1.54 in Q1 FY25, representing a 52.6% decrease in per-share profitability.
As reported in the latest financial results, the company's revenue from operations declined 46.9% to ₹115.07 lakh in Q1 FY2026 compared to ₹216.80 lakh in the same quarter of the previous financial year. This significant revenue contraction indicates reduced business activity or market demand during the quarter, contributing to the overall decline in profitability. The company also recorded dividend income of ₹5.44 lakh which increased from ₹1.18 lakh in the corresponding period of FY25, partially offsetting some of the revenue decline. Total expenses increased slightly to ₹15.06 lakh from ₹12.10 lakh in Q1 FY25, driven by higher employee benefits expense of ₹7.29 lakh compared to ₹5.81 lakh and administrative costs of ₹6.96 lakh versus ₹5.48 lakh in the previous year.
According to the detailed financial data, the company's income from venture capital fund dropped significantly to ₹0.27 lakh from ₹10.94 lakh in the corresponding period of FY25, representing a substantial decline in this key revenue stream. Additionally, profit on sale of right entitlements contracted to ₹109.35 lakh from ₹204.65 lakh in Q1 FY25, indicating reduced activity in this segment. Despite these operational challenges, the company maintained minimal net gain on fair value changes at ₹0.01 lakh. The tax expense for the quarter was ₹27.50 lakh, comprising entirely of deferred tax with no current tax provision.
In a significant corporate development, the Board approved the appointment of Mr. Alok Kalani (DIN: 03082801) and Mr. Gopal Rathi (DIN: 00553066) as Additional Directors (Non-Executive, Non-Independent) effective August 11, 2026, pending shareholder ratification via postal ballot. Mr. Kalani brings over three decades of experience in corporate finance and governance as Executive Director (Corporate Finance) at the RP-Sanjiv Goenka Group, while Mr. Rathi has over 21 years of experience in acquisitions and corporate strategy as a Chartered Accountant heading Strategy and M&A at the same group. The cut-off date for determining voting eligibility was fixed as August 7, 2026, with M/s. K. Arun & Co., Practicing Company Secretaries, Kolkata, appointed as the scrutinizer to conduct the e-voting process in compliance with SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The RBI granted approval via letter dated July 30, 2026, for their tenure until July 1, 2031.
As reported in the latest results, the company's operating profit margin (OPM) improved to 87.83% in Q1 FY2026 from 94.47% in the corresponding quarter of the previous year, despite the overall profit decline being primarily driven by the significant revenue contraction rather than operational improvements. Despite the operational slowdown in core business segments, the company recorded a substantial total comprehensive income of ₹24,901.72 lakh, largely fueled by unrealized gains in other comprehensive income. The profit before tax declined 51.3% to ₹100.01 lakh from ₹205.27 lakh in Q1 FY25, reflecting the impact of reduced revenue and higher expenses on the company's bottom line performance.
