Quest Flow - Quest Flow

📊 BSE: 543982 🏢 Other Industrial Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The Defence & Marine segment grew over 100% YoY, increasing its revenue contribution from 20% in FY24 to 35% in FY25. The Oil & Gas segment contributed 25% of revenues, while the Power & Water vertical generated INR 11 crore, representing approximately 15% of FY25 revenue. Standalone revenue from operations for FY25 was INR 61.10 crore, a slight decrease of 3.2% from INR 63.14 crore in FY24.

Geographic Revenue Split

Domestic sales in India account for approximately 75% of revenue, while exports contributed roughly 25% in FY25. Export shipments were directed to the Middle East, Southeast Asia, and Europe. The company is targeting further expansion in North America and Latin America following its 45% stake acquisition in a Houston-based LLC.

Profitability Margins

Return on Equity (ROE) decreased from 23% in FY24 to 10% in FY25, and Return on Capital Employed (ROCE) fell from 21% to 12% due to a decrease in EBIT and PAT. However, H1 FY26 showed a recovery with a standalone PAT of INR 9.06 crore, up 44% from INR 6.28 crore in H1 FY25.

EBITDA Margin

EBITDA for H1 FY26 stood at INR 14.95 crore, representing a 22.8% increase from INR 12.17 crore in H1 FY25. This improvement is attributed to better absorption of fixed costs and operational efficiencies.

Capital Expenditure

The company invested $600,000 (approximately INR 5 crore) in November 2025 to secure a 45% ownership stake in Quest Flow Controls, LLC (USA). Production capacity was also augmented in FY25 to handle a growing order book of INR 50+ crore.

Credit Rating & Borrowing

The company maintains low leverage with a Debt-Equity Ratio of 0.07 in FY25, down 24% from 0.09 in FY24. Finance costs for H1 FY26 were INR 0.87 crore.

⚙️ Operational Drivers

Raw Materials

Key raw materials include steel, alloys, castings, and bought-out components such as actuator parts. Specific percentage of total cost for each is not disclosed.

Import Sources

Not disclosed in available documents, though the company maintains a global network for sourcing and exports to the Middle East and Europe.

Key Suppliers

The company utilizes a dual-vendor policy for critical inputs and onboarded new suppliers in FY25. Specific supplier names are not disclosed, though it maintains a royalty agreement with Meson.

Capacity Expansion

Current production capacity was augmented in FY25 and is reported as sufficient to handle double-digit revenue growth in FY26 with additional room for new orders.

Raw Material Costs

Raw material costs are subject to commodity price inflation (steel and alloys). The company mitigates this through bulk purchase agreements, rate contracts, and price escalation clauses in long-term contracts.

Manufacturing Efficiency

The company achieved an inventory turnover ratio of 3.46 in FY25, a 24% improvement from 2.79 in FY24, indicating improved manufacturing and supply chain synchronization.

📈 Strategic Growth

Expected Growth Rate

15%

Growth Strategy

Growth will be driven by the 'Flow 2030' vision, focusing on the integration of the US-based Quest Flow Controls LLC to access North American markets. The company is also leveraging the 'Atmanirbhar Bharat' policy, which mandates 50-60% indigenous content in defence procurement, and expanding its product portfolio into smart actuators and desalination technology.

Products & Services

Gate valves, Globe valves (SDNR), Check valves, Quick Closing valves, Remote Control Valve Systems, and Integrated Platform Management System (IPMS) valves.

Brand Portfolio

Quest Flow Controls (formerly Meson Valves India Limited).

New Products/Services

New product launches include smart actuators, IoT-enabled valves, and solutions for carbon capture and desalination, currently in the R&D pipeline.

Market Expansion

Targeting North American and Latin American markets through the Houston hub and exploring European distribution tie-ups to strengthen global reach.

Strategic Alliances

Acquired a 45% stake in Quest Flow Controls, LLC (USA) for $600,000 to combine Indian manufacturing with US domain expertise.

🌍 External Factors

Industry Trends

The global flow control market is growing at a 5% CAGR. Trends include a shift toward IoT-enabled valves, remote monitoring, and automation in manufacturing.

Competitive Landscape

Competition includes large global players; Quest competes through cost-effective Indian manufacturing combined with international engineering support.

Competitive Moat

The company possesses a moat through internal product class certification approved by major societies, which eliminates external audit delays. High switching costs exist in the naval segment due to specialized 'type-tested' system requirements.

Macro Economic Sensitivity

Highly sensitive to government infrastructure and defence spending; the 17% increase in the Union Budget 2024-25 capital expenditure is a key positive driver.