Monitoring Agency Report for the Quarter ended 31st March, 2026 in respect to funds raised through Initial Public Offer (IPO) by the Company
QUADFUTURE · price
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CARE Ratings Limited, the monitoring agency for Quadrant Future Tek's Rs. 290 crore IPO (January 2025), has flagged several concerns for Q4 FY26. The company did not obtain board approval during Q4FY26 for General Corporate Purpose (GCP) utilization, which was only ratified on April 8, 2026. The critical KAVACH railway safety project remains pending RDSO approval, causing ongoing losses of Rs. 44.08 crore in 9MFY26 (vs Rs. 19.68 crore loss in FY25). Rs. 22.73 crore of IPO funds for Electronic Interlocking System development remain unutilized with delayed timelines. The company reallocated Rs. 2 crore from other objects to GCP. Out of Rs. 290 crore raised, Rs. 267.12 crore (92%) has been utilized with Rs. 22.88 crore parked in fixed deposits. Frequent changes in key managerial personnel were also noted.
The pending KAVACH approval and continued losses from train control operations are significant concerns. Shareholders should monitor whether RDSO approval is obtained and if the company can achieve profitability from its IPO-funded projects. The procedural delays in board approvals, while rectified, indicate governance gaps.