Quest Capital's ₹343 cr investment write-down erased its ₹23.5 cr profit
The core business grew, but a portfolio loss larger than the company's market cap swung the year to a ₹270 cr loss.
— 2 earlier stories on Quest Capital Markets Ltd. →What's new
- Net profit rose to ₹23.53 crore for FY26, up from ₹19.63 crore the prior year.
- A ₹343.35 crore investment write-down created a total loss for the year of ₹270.20 crore.
- Board recommended a final dividend of ₹2.50 per share and approved reappointment of two independent directors.
Why this matters
The operating business is growing, but the investment portfolio's volatility dominates the balance sheet. The write-down is larger than Quest Capital's entire ₹274 crore market cap, meaning the portfolio can swing more than the equity can absorb. The dividend signals the board views the loss as a non-cash accounting event.
What we're watching
- How portfolio valuations move in coming quarters to offset the FY26 hit.
- Whether the board rebalances the volatile asset base relative to operating earnings.
- Shareholder approval for the ₹2.50 dividend at the AGM.
The full read
Quest Capital Markets is a ₹274 crore company that earned ₹23.53 crore from its business this year, up 20% from ₹19.63 crore. The rest of the story is a ₹343.35 crore negative adjustment on its investment portfolio, which erased the profit and left a total loss of ₹270.20 crore. The write-down is larger than the company itself. The board is paying a ₹2.50 per share dividend, a sign that operating cash generation remains intact. The filing lays bare the risk for a small-cap investment house: a profitable core offers no protection when the assets swing harder than the equity can absorb.
Questions answered
- How did a profitable company post a massive annual loss?
- The company's operations delivered a net profit of ₹23.53 crore. Separately, it booked a ₹343.35 crore downward adjustment on its investment holdings, creating a total loss for the year of ₹270.20 crore.
- How does the investment loss compare to the company's size?
- The ₹343.35 crore write-down is larger than Quest Capital's entire market capitalization of ₹274 crore. The portfolio's value swings exceed the size of the equity itself.
- Why declare a dividend after such a large loss?
- The board recommended ₹2.50 per share. This points to stable underlying cash flow from operations, as the portfolio loss is a non-cash accounting adjustment.
- What was the core business performance?
- Net profit grew 20% year-on-year, from ₹19.63 crore to ₹23.53 crore. That is the operational result before accounting for the volatile investment portfolio.
Story so far
All notes on QUESTCAP →- 29 May 2026 · 8:13 PM IST Quest Capital's ₹343 cr investment write-down erased its ₹23.5 cr profit
- 1d ago Quest Capital's ₹23.53 cr profit gets wiped by a ₹343 cr investment swing
- 1d ago Quest Capital's ₹30.6 cr operating profit wiped out by ₹270 cr portfolio loss