Quest Capital Markets Ltd Reports Outstanding Quarterly Performance Amid Market Challenges

Quarterly Financial Highlights Demonstrate Strong Momentum

In the most recent quarter, Quest Capital reported net sales of ₹28.19 crores over the last six months, reflecting a marked improvement from prior periods. The company’s Profit Before Depreciation, Interest and Taxes (PBDIT) surged to a record ₹26.82 crores, while Profit Before Tax excluding other income (PBT less OI) also reached an all-time high of ₹26.83 crores. Net profit after tax (PAT) stood at ₹20.70 crores, with earnings per share (EPS) mirroring this figure at ₹20.70, underscoring the company’s enhanced operational efficiency and profitability.

These figures represent a substantial leap from the previous quarter and the last three months, where the financial trend was flat. The company’s financial trend score has improved dramatically from 0 to 32, categorised as outstanding, signalling a strong positive shift in business fundamentals.

Stock Price and Market Performance

Quest Capital’s stock price closed at ₹267.75, up 1.61% from the previous close of ₹263.50 on 12 Feb 2026. The stock traded within a range of ₹260.00 to ₹279.90 during the day, remaining closer to its 52-week low of ₹252.75 than its high of ₹425.90. This price action reflects cautious optimism among investors, balancing the company’s recent strong earnings with broader sector and market volatility.

Long-Term Returns Outperform Benchmarks

Despite short-term headwinds, Quest Capital has delivered impressive long-term returns relative to the Sensex. Over the past 10 years, the stock has appreciated by 856.25%, significantly outperforming the Sensex’s 267.00% gain. Even over five years, the stock’s return of 142.09% eclipses the benchmark’s 63.46%. However, recent performance has been mixed, with a year-to-date decline of 10.35% compared to the Sensex’s modest fall of 1.16%, and a one-year return of -29.52% against the Sensex’s positive 10.41%.

Financial Trend Shift: From Flat to Outstanding

The company’s financial trend parameter has shifted from flat to outstanding in the last quarter, a rare and significant development in the capital markets sector. This improvement is driven by a combination of higher sales, margin expansion, and disciplined cost management. Quest Capital’s PBDIT margin has expanded considerably, reflecting better control over operating expenses and increased revenue quality.

Such a turnaround is noteworthy given the challenging environment for capital markets firms, which have faced pressure from fluctuating market volumes and regulatory changes. Quest Capital’s ability to buck this trend and deliver record quarterly profits suggests a strategic repositioning and operational resilience.

Mojo Score and Rating Upgrade

MarketsMOJO’s proprietary Mojo Score for Quest Capital currently stands at 43.0, with a Mojo Grade of Sell. This represents an upgrade from the previous Strong Sell grade assigned on 4 August 2025. The improvement in rating reflects the company’s enhanced financial metrics and positive outlook, although caution remains due to valuation concerns and sector volatility.

Sector and Industry Context

Operating within the capital markets industry, Quest Capital’s recent performance contrasts with the broader sector’s mixed results. While some peers have struggled with margin compression and subdued deal flow, Quest Capital’s turnaround highlights its competitive positioning and ability to capitalise on market opportunities. The company’s market capitalisation grade remains modest at 4, indicating room for growth and investor interest.

Investor Takeaway: Balancing Optimism with Caution

Quest Capital’s recent quarterly results provide compelling evidence of a turnaround, with outstanding financial performance and improved profitability metrics. The company’s ability to generate higher net sales and expand margins in a challenging capital markets environment is encouraging for investors seeking growth opportunities in the sector.

However, the stock’s recent price volatility and the Mojo Grade of Sell suggest that investors should remain cautious. The company’s valuation, relative to its 52-week high, indicates potential upside but also risk, especially given the broader market uncertainties and sector-specific challenges.

Long-term investors may find Quest Capital’s strong historical returns attractive, but short-term traders should monitor quarterly updates and sector developments closely. The upgrade in financial trend and rating signals positive momentum, yet the company must sustain this performance to justify a higher rating and valuation premium.

Outlook and Future Prospects

Looking ahead, Quest Capital’s focus will likely remain on consolidating its recent gains, expanding its client base, and leveraging market opportunities to sustain revenue growth. Continued margin discipline and cost control will be critical to maintaining profitability in a competitive landscape.

Investors should watch for upcoming quarterly results and management commentary for indications of whether this outstanding trend can be maintained or improved. The company’s strategic initiatives and market positioning will be key determinants of its future trajectory.

Summary

In summary, Quest Capital Markets Ltd has demonstrated a remarkable turnaround in its financial performance for the quarter ended December 2025. With record net sales, PBDIT, PBT, and PAT figures, the company has shifted its financial trend from flat to outstanding. Despite a cautious market environment and a Mojo Grade of Sell, the improved fundamentals and long-term return profile make Quest Capital a stock to watch closely in the capital markets sector.

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