Quest Flow Controls Ltd Management Discussions

INDUSTRY STRUCTURE AND DEVELOPMENTS

The global flow-control industry

Industrial valves are the mechanical devices that regulate the flow, pressure and direction of fluids and gases within a process system. Demand for them is a direct function of capital expenditure across energy, oil & gas, petrochemicals, water and wastewater, power, marine and defence — which makes the industry a reliable proxy for global industrial investment. Grand View Research sizes the global industrial valves market at USD 80.4 billion in 2025, growing to USD 126.4 billion by 2033 at a CAGR of 6.2%.

Independent estimates of market size vary materially with methodology and scope, and the Company therefore treats the range, rather than any single figure, as the meaningful indicator. The table below sets out third-party projections in the public domain; the dispersion in the growth rates shown — from roughly 4% to over 12% — is itself an indication of how differently the industry is defined between houses, and none of these estimates is adopted by the Company.

Source	Base year	Forecast	CAGR
Grand View Research [1]	2025: USD 80.4 bn	USD 126.4 bn by 2033	6.2%
IMARC Group [2]	2025: USD 82.9 bn	USD 136.0 bn by 2034	5.70%
Research Nester [3]	2025: USD 88.36 bn	USD 133.29 bn by 2035	4.40%
Precedence Research [4]	2025: USD 86.67 bn	USD 273.49 bn by 2035	12.18%

Asia-Pacific is the largest regional market, accounting for 36.3% of global industrial valve revenue in 2025, driven by industrialisation, energy infrastructure build-out and manufacturing growth across China, India, Japan and South Korea.

The Indian market

India is among the fastest-growing valve markets globally. TechSci Research values the Indian industrial valves market at USD 3,736.73 million in 2024, projected to reach USD 5,897.18 million by 2030 at a CAGR of 7.74% — a growth rate meaningfully ahead of the global average.

Four policy-led demand pools are of direct relevance to your Company:

(a) Defence indigenisation and naval modernisation

The Union Budget 2026-27 allocated ?7.85 lakh crore to the Ministry of Defence, 15.19% above the prior years budget estimates. Of the capital acquisition budget, ?1.39 lakh crore — 75% — is earmarked for procurement from domestic industry. [6] Indian defence production reached an all-time high of ?1,50,590 crore in FY 2024-25, 18% above the preceding year and 90% above FY 2019-20, with the private sectors share rising to 23%. Defence exports reached ?23,622 crore in the same year. [7]

For a qualified indigenous supplier of naval flow-control equipment, this is a structurally protected and expanding addressable market rather than a cyclical one.

(b) Shipbuilding and the maritime economy

The Shipbuilding Financial Assistance Policy 2.0 raised the shipbuilding support outlay to ?18,090 crore from ?4,000 crore, alongside ?1,200 crore for Shipbuilding Capability Development Centres and ?610 crore for ship technology R&D.

A ?25,000 crore Maritime Development Fund — with government contribution of up to 49% — is expected to catalyse investment of up to ?1.5 lakh crore by 2030, as India pursues a place among the top five global shipbuilding nations by 2047.

(c) Gas, LNG and cryogenic infrastructure

The International Energy Agency projects Indias natural gas demand to rise nearly 60% by 2030 to about 103 bcm annually, with LNG imports required to more than double to around 65 bcm. The transmission pipeline network, already 40% longer than in 2019, is projected to expand a further 50% by 2030. Each regasification terminal, pipeline and city-gas network built creates demand for cryogenic and low-emission valve technology of exactly the type the Company has now qualified.

2. COMPANY OVERVIEW

Quest Flow Controls Limited ("QFCL") manufactures and supplies critical flow-control solutions for technically demanding applications across shipbuilding, submarine and naval defence, oil & gas, petrochemical, chemical, energy and power sectors. The Company has built capability across a broad range of ferrous and non-ferrous valves and specialised flow-control products, supported by in-house manufacturing, testing and research and development.

The Company operates its manufacturing facility at Chakan, Pune, with a dedicated research and development facility and global sales operations based in Pune, and an established operating presence in the United States. The Company currently serves customers across more than ten countries.

Over successive years QFCL has moved progressively away from conventional valve applications toward specialised, engineered and certification-intensive work — particularly in naval, submarine, cryogenic and high-temperature service. That transition is the central fact of the Companys business profile. It has lengthened qualification cycles and raised the engineering content of each order, but it has also placed the Company in segments where the number of qualified suppliers is small and the barriers to entry are real.

Product portfolio

- Butterfly Valves · Triple Offset, Double Offset, Resilient Cartridge Seated and Resilient Flexible Seated

- Ball Valves · Top Entry, Floating, Trunnion Mounted, Four Way, Three Way L-Port, Side Entry and Three Piece

- Gate Valves, Globe Valves and Check Valves

- Special Purpose Valves · Storm Valves, Quick Closing Valves, Self Closing Valves and Strainers

Materials worked include Nickel Aluminium Bronze, Gun Metal, super-austenitic stainless steel, stainless steel, carbon steel, low-temperature carbon steel and aluminium alloys. The breadth of this portfolio allows the Company to address diverse operating environments and reduces dependence on any single product category or end-market.

3. OPPORTUNITIES AND THREATS

Opportunities

- Naval and submarine flow control. The Company holds approval from the Defence Machinery Design Establishment (DMDE) and has supplied across multiple Indian Navy programmes. In a segment with few qualified domestic suppliers, existing approvals convert directly into invitation to bid on successive platforms.

- Cryogenic and LNG applications. Entry into low-emission certified cryogenic service at approximately ·196?C opens participation in Indias LNG terminal and gas infrastructure build-out.

- Naval spares and aftermarket. An installed base across naval platforms creates a recurring requirement for spares, scheduled maintenance and emergency support · revenue that is less capital-cycle dependent than new-build work.

- North American market access. The Houston platform provides local presence in one of the worlds largest and most demanding markets for engineered flow and marine systems.

- Backward integration. Bringing substantially all casting requirements in-house is the single highest-return operational initiative available to the Company, and is expected to deliver an accretion of approximately 3% to Profit After Tax margin once fully implemented.

- Sector diversification. Presence across defence, oil & gas, water, power and process industries reduces dependence on any one capital cycle.

Threats

- Metal price volatility. Nickel Aluminium Bronze, super-austenitic and specialised stainless grades are subject to price movement that can compress margin on fixed-price orders. Inventory positioning and supplier relationships are the principal mitigations, and both consume working capital.

- Extended procurement and execution cycles. Defence and shipbuilding orders are governed by government procurement schedules and yard readiness. Slippage in a customers programme translates directly into deferred revenue recognition for the Company.

- Import competition. Limited domestic availability in certain marine valve categories encourages buyers to import, introducing price-based competition.

- Regulatory and trade policy change. Changes in manufacturing, export-import or environmental regulation can affect operations and compliance cost, particularly for a company expanding its export footprint.

4. SEGMENT-WISE AND PRODUCT-WISE PERFORMANCE

The Company operates in a single reportable business segment — the manufacture, import, export, trading of and consultancy in respect of all types of valves and fittings — from which it derives substantially all of its revenue.

Within that single segment, management monitors performance across four application groups: Naval, Defence and Marine; Oil, Gas and Petrochemical; Power and Process; and Water and Wastewater. During the year under review the naval, defence and marine group represented the Companys principal area of order intake and strategic focus.

5. BUSINESS PERFORMANCE AND STRATEGIC DEVELOPMENTS

Financial Year 2025-26 was a year of investment and consolidation rather than of earnings growth, and the Company presents it as such.

Revenue from operations for the year was broadly in line with the preceding year. At the operating level the Company traded close to break-even, and the reported result for the year was a loss. That outcome reflects a set of deliberate choices — absorbing the cost of newly commissioned capacity, of new product qualification and of a broader employee base ahead of the revenue those investments are built to earn — together with the effect of non-operating and associate-level items that do not reflect the health of the core manufacturing business. Elevated working capital consumption during the year, arising from higher receivables and inventory build against a growing order book, also weighed on the result.

Operational milestones during the year

The Companys order intake during the year demonstrated both the breadth of its qualification and its entry into new customers and applications. Among the developments announced publicly or recorded in the Companys investor material:

- Garden Reach Shipbuilders & Engineers Limited (GRSE) awarded the Company an order valued at ?23.55 crore for the supply of critical valves and spares for a naval project

- BHEL Engineering Services Division, Bengaluru awarded an order valued at ?19.89 crore for remote-control valves for the naval Integrated Platform Management System (IPMS) programme,

- Mazagon Dock Shipbuilders Limited (MDL) · execution of a four-way submarine valve order, and supply of a DN800 motorised butterfly valve.

- First cryogenic ball valve order, first order from NPCIL and first Russian order fulfilled

- High-temperature Triple Offset Butterfly Valve order executed, extending the Companys qualified service envelope at the upper end of the temperature range.

- Divestment of H2O Dynamics India Limited for ?7.35 crore in March 2026, sharpening the Companys focus on its core valve manufacturing business.

The Companys bookings crossed ?100 crore during FY 2025-26, and its order book stood in excess of ?100 crore as at March 2026 per the Companys April 2026 investor presentation. Management regards the pipeline, rather than the reported result for the year, as the clearest available evidence that the demand thesis behind the years investment is intact.

6. DEFENCE, NAVAL AND SUBMARINE BUSINESS

The defence and naval segment is the Companys principal strategic growth area, and the area in which its accumulated qualification is least easily replicated.

QFCL has developed specialised capability for naval applications including hull valves for warships, non-ferrous Triple Offset Butterfly Valves, tank gauging systems, ballast control systems and remote-control valve systems. The Company holds approval from the Defence Machinery Design Establishment (DMDE).

During the year the Company executed a four-way submarine valve order from Mazagon Dock Shipbuilders Limited. The Companys investor material further records its first indigenous submarine supply for an Indian Navy submarine programme, undertaken with a special approval from the Indian Navy.

The Companys performance credentials in this segment include supplies to L3Harris for Indian Navy IPMS programmes covering the P17A, SVL and ASW programmes, with more than 1,200 valves supplied across those programmes, and supplies to L&T Shipbuilding and other leading yards.

Established approvals, a growing installed base and application-specific engineering experience together provide the foundation for the Companys participation in future naval modernisation and indigenous submarine programmes. Qualification in these segments is slow and exacting by design; each approval, once earned, is a durable position that a competitor cannot shortcut.

7. TYPE TESTING, CERTIFICATION AND COMPETITIVE ADVANTAGE

A key differentiator of the Company is its accumulated experience in type testing and product validation. Type testing validates the design, materials and manufacturing process of a valve family, and provides assurance that identically designed and sized valves will meet the applicable industry standard. It is expensive, slow and, once completed, difficult for a competitor to bypass.

The Companys April 2026 investor presentation records 76 completed type test with a further many in process, and a 100% pass rate on new product lifecycle testing. Lifecycle validation includes 31,000 cycles completed on high-performance butterfly valves and 52,000 cycles on centric butterfly valves, with pneumatic actuator response of five seconds on opening and closing. [12]

Management estimates that obtaining certain type approvals can take approximately two to three years. The Companys accumulated approvals and technical know-how therefore represent a material entry barrier in specialised valve applications, and support both customer retention and repeat business.

8. NEW PRODUCT DEVELOPMENT AND TECHNOLOGY

The Company continued during the year to extend its capability into technically demanding applications.

The most significant development was entry into cryogenic valve service. The Company executed its first low-emission certified cryogenic application order for the Adani Dhamra LNG Terminal, involving service temperatures of approximately –196?C. Cryogenic qualification is a distinct engineering discipline, and its achievement opens participation in the LNG and industrial gas infrastructure now being built across India.

At the opposite end of the temperature range, the Company executed a high-temperature Triple Offset Butterfly Valve order, with supply operating at temperatures up to 527?C. Taken together, the two developments materially widen the service envelope within which the Company can be considered a qualified supplier.

The Company has also continued to widen its qualified portfolio for naval and strategic applications, including IPMS-compatible valves, type-tested alloy steel valves and Quick Closing Valve systems.

9. INDIA–UNITED STATES STRATEGIC EXPANSION

International expansion is a core component of the Companys growth strategy, and the establishment of a United States operating platform was the most consequential strategic step taken in recent years.

The Company strengthened its presence in the United States through its 45% acquisition of QFC LLC, Houston, Texas, completed in September 2025. The US entity provides a local platform for sales and assembly, and is intended to serve customers across the United States, Canada and Latin America. The American market for engineered flow and marine systems is among the largest and most demanding in the world, and it rewards suppliers present within it rather than selling into it from a distance.

The strategy pairs the Companys Indian manufacturing base with a local commercial and assembly platform. It is intended to improve proximity to customers, shorten delivery timelines, strengthen after-sales support and establish credibility in qualification processes with American buyers. A local sales organisation has been established, with Regional Sales Managers appointed across the United States and Canada, while the Houston assembly operation is being developed on a phased basis.

Shareholders should note that the US entity is at an early stage of its development, and that associate-level losses attributable to it weighed on the consolidated result for the year under review. Management regards this as the expected cost profile of an early-stage market entry rather than as an indication of the platforms eventual contribution.

10. INTERNATIONAL MARKET OPPORTUNITIES

The Company has historically supplied international markets including Germany, the United States and Russia, and continues to develop its international customer base. Its identified target segments in the United States are Navy and Marine, Oil & Gas, Water and Wastewater, and Refinery and Petrochemical applications — segments matched to the Companys existing non-ferrous marine valves, Triple Offset Butterfly Valves, Ball Valves and specialised products.

The Company is pursuing additional international certifications including API, WRAS/NSF, TRCU, CE/PED, ATEX, SIL and UL approvals, which would further broaden market access once obtained. API certification is expected in FY 2026-27.

Export engagement also provides the Company with growth avenues that are not dependent on any single domestic capital cycle, and management regards geographic diversification as a risk-management measure as much as a growth measure.

11. MANUFACTURING INFRASTRUCTURE AND CAPACITY

The Company has substantially expanded its manufacturing and testing infrastructure over recent years.

Parameter	Earlier	Current
Manufacturing footprint	7,500 sq. ft.	35,000 sq. ft.
Stated production capacity	3,000 valves p.a.	30,000 valves p.a.
Shift pattern	Single 12-hour shift	Three shifts
Testing equipment	—	Multiple Units Added

The facility at Chakan, Pune now covers 35,000 sq. ft., with a fourfold capacity expansion completed and 400 testing equipments added; a dedicated research and development facility has been established at Baner, Pune. [12] Material-handling facilities, EOT cranes and new CNC machinery have been commissioned, and operations now run across three shifts covering machining, assembly and testing.

This expansion provides a scalable platform to support increasing order volumes while improving the Companys ability to execute technically complex products. It also carries a fixed-cost burden that is absorbed most efficiently at higher utilisation — which is why the conversion of order book into throughput is managements principal operating priority for the year ahead.

12. TRACK RECORD AND CUSTOMER RELATIONSHIPS

The Company has developed an established customer base across defence, shipbuilding, oil & gas, energy and industrial applications. Performance certificates on record demonstrate successful supply and operating installations across a number of critical applications, including:

- More than 2,100 valves supplied for a 150 KTA Carbon Black Plant at Dahej, including a DN1200 triple offset butterfly valve

- Ball valves supplied to the ISRO Propulsion Complex, Mahendragiri, and 54 ball valves supplied for the Chandrayaan programme

- Monel valves supplied for HPCLs Visakh Refinery

- 600 valves supplied to an L&T Shipbuilding project

- More than 1,200 valves supplied across L3Harris Indian Navy IPMS programmes

- DN1500 gate valve supplied to Cochin Shipyard for the TDV project

Customer and project references above are drawn from the Companys performance certificates and investor presentation. Experience across projects of this nature provides the Company with application knowledge and reference credentials that are directly usable in future customer acquisition.

13. NAVAL SPARES AND AFTERMARKET OPPORTUNITY

Beyond new-build supply, the Company is developing opportunities in the naval spares and maintenance market. Its installed base across naval platforms creates a recurring requirement for spare parts, emergency supply, scheduled maintenance and inventory support.

The Companys approach includes developing direct relationships with naval establishments and maintaining inventory positions to support recurring requirements. Aftermarket business typically carries a more stable revenue profile than project work and deepens customer engagement across the operating life of a platform — a characteristic of particular value to a company whose new-build revenue is exposed to procurement cycles.

14. FUTURE OUTLOOK

The Companys priority for FY 2026-27 is conversion: converting the order pipeline into executed revenue, converting the capacity that has been built into throughput, and converting the backward integration programme into margin. Alongside this, closer discipline will be applied to items sitting outside core operations, so that the reported result reflects the strength of the operating business rather than obscuring it.

The key pillars of the growth strategy are expected to be:

- Deepening presence in defence and naval applications and expanding submarine valve capability

- Increasing participation in oil & gas, refinery and petrochemical projects

- Scaling exports through the United States platform and broadening the international certification portfolio

- Developing specialised products for cryogenic and high-temperature service

- Improving utilisation of the expanded manufacturing capacity

- Building recurring aftermarket and naval spares revenue

- Restoring working capital discipline, with particular attention to receivable collection cycles

The external environment remains favourable. India is projected to remain the worlds fastest-growing major economy, with sustained policy focus on defence, energy security, water security and infrastructure development. The Company sits at the confluence of these national priorities, and its expanded infrastructure, engineering capability, type-test credentials and growing customer base provide a platform from which to pursue the resulting opportunities.

15. RISKS AND CONCERNS

- Project and order execution risk. Large industrial, defence and shipbuilding projects involve extended execution cycles and customer-specific requirements. Delay in a customers programme may defer order execution and revenue recognition irrespective of the Companys own readiness.

- Raw material price risk. The Companys products use specialised metals and alloys including stainless steel, carbon steel and Nickel Aluminium Bronze. Volatility in these prices may compress margin, particularly on fixed-price orders with long execution periods.

- Working capital risk. Scaling manufacturing and international operations requires additional inventory and receivable funding. Elevated working capital consumption during the year under review is a matter of active management attention, and shortening the collection cycle is an explicit operating priority.

- Certification risk. Entry into certain markets requires additional certification. The timing and cost of obtaining such approvals may affect the pace of the Companys international expansion.

- International expansion risk. The United States expansion exposes the Company to foreign exchange movement, local regulation, customer acquisition risk, competitive conditions and the successful ramp-up of the Houston operation. Early-stage losses at the associate level have already affected the consolidated result.

- Defence procurement cycle risk. Naval and defence opportunities are linked to government procurement programmes and shipbuilding schedules, which can involve long development and approval cycles outside the Companys control.

- Competition. The Company operates against established domestic and international manufacturers. Maintaining product quality, delivery performance, technical credentials and competitive pricing will remain essential.

- Customer and programme concentration. A meaningful share of order intake is derived from a limited number of large defence and shipbuilding customers. Diversification across sectors and geographies is the Companys structural response to this exposure.

16. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

The Companys internal control systems are commensurate with the nature of its business and the size and complexity of its operations. These systems are tested and certified by the Statutory Auditor as well as the Internal Auditor and cover all offices, the manufacturing facility and key business areas.

Periodical reports, significant audit observations and follow-up actions are reported to the Audit Committee, which is headed by an Independent Director — an arrangement that ensures independence of function and transparency in the process of supervision and oversight. The Audit Committee reviews the adequacy and effectiveness of the Companys internal control environment and monitors the implementation of audit recommendations, including those relating to the strengthening of risk management policies and systems.

The Company conducts its business with integrity and a high standard of ethical behaviour, and in compliance with the laws and regulations governing its business.

17. MATERIAL DEVELOPMENTS IN HUMAN RESOURCES AND INDUSTRIAL RELATIONS

The Companys growth strategy is supported by a technically experienced management and operating team, with leadership experience spanning shipbuilding, marine, defence, offshore, naval, manufacturing, sales, quality, procurement and supply-chain operations.

The Company employed a workforce of more than 100 persons during the year across manufacturing, engineering, quality, sales and support functions. The employee base was deliberately broadened during the year ahead of the revenue the Companys expanded capacity is built to earn, and the cost of that decision is reflected in the result for the year.

The Company continues to emphasise the development and facilitation of optimum human performance, and to invest in the leadership capacity required to steer a more complex and diversified organisation. It believes in timely compliance with all statutory payments, particularly those relating to employees. The Companys Policy on Prevention of Sexual Harassment ensures a safe environment and dignity and respect for all employees. Industrial relations during the year under review remained cordial.

As the Company expands into specialised applications and international markets, continued investment in engineering talent, quality systems and technical expertise will remain a priority.

18. CAUTIONARY STATEMENT

Certain statements made in this Management Discussion and Analysis Report relating to the Companys objectives, projections, outlook, expectations, estimates and intentions may constitute "forward-looking statements" within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied.

Several factors could make a significant difference to the Companys operations, including economic conditions affecting demand and supply, government regulation and taxation, movements in raw material prices, foreign exchange fluctuation, the timing of government and defence procurement decisions, the progress of customer shipbuilding and infrastructure programmes, the timing of certification approvals, epidemic or pandemic conditions, and natural calamities — over which the Company has no direct or indirect control.

Addressable-opportunity figures and market projections referenced in this Report represent managements assessment or third-party estimates and should not be interpreted as assured, contracted or committed revenue. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

19. SOURCES AND REFERENCES

References cited in this Report are set out below. Market and policy data are drawn from published third-party and Government of India sources; Company data is drawn from the Companys investor presentation, stock exchange filings and audited financial statements.

Industry and market data

[1] Grand View Research, "Industrial Valves Market Size & Share Report, 2026-2033" — global market USD 80.4 bn (2025), USD 126.4 bn by 2033, CAGR 6.2%; Asia-Pacific 36.3% share (2025). https://www.grandviewresearch.com/industry-analysis/industrial-valves-market

[2] IMARC Group, "Industrial Valves Market Size, Share, Industry Report, 2034" — USD 82.9 bn (2025) to USD 136.0 bn (2034), CAGR 5.70%. https://www.imarcgroup.com/industrial-valves-market

[3] Research Nester, "Industrial Valves Market Size & Share, Growth Analysis 2035" — USD 88.36 bn (2025) to USD 133.29 bn (2035), CAGR 4.4%. https://www.researchnester.com/reports/industrial-valves-market/5209

[4] Precedence Research, "Industrial Valves Market Size to Reach Around USD 273.49 Billion by 2035" — USD 86.67 bn (2025) to USD 273.49 bn (2035), CAGR 12.18%. https://www.precedenceresearch.com/industrial-valves-market

[5] TechSci Research, "India Industrial Valves Market Size, Growth and Outlook 2030F" — USD 3,736.73 mn (2024) to USD 5,897.18 mn (2030), CAGR 7.74%. https://www.techsciresearch.com/report/india-industrial-valves-market/3549.html

Government of India policy and defence data

[6] Press Information Bureau, Ministry of Defence, "Ministry of Defence allocated an all-time high of Rs 7.85 lakh crore in Union Budget 2026-27" — capital acquisition ?1.85 lakh crore, of which ?1.39 lakh crore (75%) earmarked for domestic industry. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2221612

[7] Press Information Bureau, Ministry of Defence, "Defence production soars to an all-time high of Rs 1.51 lakh crore in FY 2024-25" — production ?1,50,590 crore, +18% YoY; private sector share 23%; defence exports ?23,622 crore. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2154551

[8] Research and Information System for Developing Countries (RIS), "Shipbuilding Financial Assistance Policy 2025: A Maritime Transformation" — SBFAP 2.0 outlay ?18,090 crore; Maritime Development Fund ?25,000 crore; top-five shipbuilding nation target by 2047. https://www.ris.org.in/en/node/4155

[9] International Energy Agency, "Indias natural gas demand set for 60% rise by 2030, supported by upcoming global LNG supply wave" — demand to ~103 bcm by 2030; LNG imports to ~65 bcm. https://www.iea.org/news/india-s-natural-gas-demand-set-for-60-rise-by-2030-supported-by-upcoming-global-lng-supply-wave

Discussion on Financial Performance with respect to operational performance:

FINANCIAL PERFORMANCE:

The highlight of the financial performance of the Company for the year ended March 31, 2026 is summarized as follows:

STANDALONE:

(Amount in lakhs)

Particulars	FY 2025-26	FY 2024-25
Revenue from Operations	5,857.57	6,110.33
Other Income	769.99	47.63
Total Income	6,627.56	6,157.96
Cost of Material Consumed	4,719.27	3,735.45
Changes In Inventories	-997.57	41.23
Employee Benefits Expenses	841.40	604.34
Financial Cost	67.13	81.41
Depreciation and amortisation expenses	485.58	343.53
Other Expenses	1,191.81	559.56
Total Expenses	6,307.63	5,365.52
Profit/(Loss) before Tax	319.94	792.44
Less: Exceptional items	259.08	-
Profit/(Loss) before Tax	60.85	792.44
Provision for Taxation (Net)	45.35	164.84
Profit/(Loss) after tax	15.51	627.60
Other Comprehensive income for the financial year	-	-
Total Comprehensive income/(loss) for the financial year	-	-
Earnings per Equity Share (?) - Face value of 10/- each	0.15	6.18

CONSOLIDATED:

Amount in lakhs)

Particulars	FY 2025-26	FY 2024-25
Revenue from Operations	6,236.26	6721.24
Other Income	787.67	73.11
Total Income	7,023.93	6794.34
Cost of Material Consumed	4,193.98	3623.81
Purchase of Stock-m-trade	677.95	692.76
Changes In Inventories	-986.01	-142.12
Employee Benefits Expenses	983.20	691.57
Financial Cost	67.13	81.41
Depreciation and amortisation expenses	500.32	344.26
Other Expenses	1,360.91	608.37
Total Expenses	6,797.49	5900.06
Profit/(Loss) before Tax	226.44	894.28
Less: Exceptional items	259.08	-
Profit/(Loss) before Tax	-32.64	894.28
Provision for Taxation (Net)	51.16	209.88
Profit/(Loss) after tax	-83.81	684.41
Profit/(Loss) from Associate	-344.43	-4.90
Profit/(Loss) for the period	-428.23	679.51
Other Comprehensive income for the financial year	-	-
Total Comprehensive income/(loss) for the financial year	-	-
Earnings per Equity Share (?) - Face value of 10/- each	-4.21	6.69

Material Developments in Human Resources / Industrial Relations front, including number of People Employed:

Your Company follows a policy of building strong teams of talented professionals. People remain the most valuable assets of your Company. The Company recognizes people as its best employees and the Company has kept a sharp focus on Employee Engagement. The Companys Human Resources is commensurate with the size, nature, and operations of the Company.

Details of Key Financial Ratios, along with detailed Explanations Thereof:

Description	As at March 31, 2026	As at March 31, 2025	Variance	Remark
Current Ratio	2.35	4.79	-51%	This is primarily due to an increase in Trade Payables as at balance sheet date
Debt-Equity Ratio	0.06	0.07	-10%	N.A.
Debt Service Coverage Ratio	1.30	5.33	-76%	Decrease in debt service coverage ratio due to Increase in debt Repayment
Return on Equity Ratio	0.002	0.004	-47%	Decrease in ratio due to substantial decrease in profit after tax
Inventory turnover ratio	2.99	2.77	8%	Increase in Production and Decrease In sales
Trade Receivables Turnover Ratio	1.33	2.29	-42%	Attributable to an increase in trade receivables during the year.
Trade payables Turnover Ratio	2.41	5.21	-54%	This is primarily due to an increase in Trade Payables as at balance sheet date
Net Capital turnover ratio	1.15	1.28	-10%	On account of Decrease in turnover and increase in current liability
Return on Capital employed	-0.04	0.12	-136%	Decrease in Return on CE is due to increase in expenses during the year.

Forward-Looking Statement:

Certain statements made in the Management Discussion and Analysis Report relating to the Companys objectives, projections, outlook, expectations, estimates, and others may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, whether expressed or implied. Several factors could make a significant difference to our operations. These include climatic and economic conditions affecting demand and supply, government regulations and taxation, any epidemic or pandemic, and natural calamities over which we do not have any direct/indirect control.

Cautionary Statement:

This report contains forward- looking statements based on the perceptions of the Company and the data and information available with the company. The company does not and cannot guarantee the accuracy of various assumptions underlying such statements and they reflect Companys current views of the future events and are subject to risks and uncertainties. Many factors like change in general economic conditions, amongst others, could cause actual results to be materially different.

For and on behalf of the Board of Directors

Quest Flow Controls Limited

(FORMERLY KNOWN AS MESON VALVES INDIA LIMITED)

Sd/-

Brijesh Madhav Manerikar

Chairman & Managing Director

Place: Pune

Date: 02.09.2026