Stock jumps 6% after foraying into defence sector in Q3; Plans to enter oil and gas industry

Synopsis: Quest Flow Controls have surged by over 6% after the company’s Q3 FY26 updates pointed to movements in the API Monogram License, exports to the US & Russia, and a foray into the defence category by securing a submarine valve contract for Mazagon Dock, and the achievement of an order book exceeding Rs 100 crores.

The shares of this company, which specialises in assembling, manufacturing, purchasing, distributing, and servicing a diverse range of products, including valves, actuators, strainers, and remote control systems, across various industries, had its shares in momentum after the company reported its Q3 FY26 milestones with developments in segments like defence, oil & gas, and more.   

With the market cap of Rs 191 crore, the shares of Quest Flow Controls Ltd had hit their intraday high at Rs 189.70, gaining more than 6 per cent compared to their previous day’s closing price of Rs 178.10. The shares are trading at a PE of 31.2, whereas their industry PE is at 29.8. 

About the business updates:

API Monogram Licence

Quest Flow Controls’ Q3 FY26 business update indicates that it has maintained a progress rate for several developments across regulatory approvals, exports, defence participation, and capacity expansion. Among the key updates is the kick-start of the API Monogram License process, which is one of the critical certifications to participate in global oil and gas projects.

Considering the audit is planned for April-May 2026 and the certification is expected by June 2026, this can be one of the greatest drivers for the company to increase its bids for international tenders and position itself among a handful of Indian manufacturers of valves with global recognition.

Exports

The company made meaningful progress on the exports and defence front. During the quarter, Quest Flow completed two shipments to the US, executed its first supply to Russia with EAC/EACU certification, and appointed a channel partner in Thailand, which is a strong thrust on its international footprint. 

Defence and shipbuilding

In defence and shipbuilding, the company successfully developed and supplied its first submarine valve to Mazagon Dock and built fogway valve capability, placing it in that niche group of global manufacturers of such critical components. GOI’s Shipbuilding Financial Assistance Policy (SBFAP) mentions “40% local content mandatory for commercial ships that would be built in India,” which further structurally benefits domestic suppliers like Quest Flow.

Also read: NBFC stock jumps 3% after reporting 77% YoY growth in AUM to ₹55,000 Cr

Operations

At the operational level, the entity is still pursuing growth through scale and autonomy. Its Chakan facility, with a manufacturing space of 35,000 sq. feet, is strengthened with the emergence of new manufacturing processes, better testing facilities with four fully automatic test racks, and enhanced R&D talent with the addition of 18 new members.

The order books exceeded the Rs 100 crore milestone, ensuring robust revenue growth. Further, the strategy shift from royalty technology to indigenous R&D is likely to aid margins as well as flexibility in IPR compliance for the oil & gas, defence, and shipping segments.

Financials and more

The revenue from operations for the company stands at Rs 26.22 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 29.62 crores, down by about 11.5 per cent YoY. Similarly, the net profit stood at Rs 1.12 crore in Q2 FY26, down from Rs 3.97 crore in Q2 FY25.

The customer base for the company demonstrates credibility and an established industry network that stretches across oil and gas, power, chemicals, energy, shipbuilding, infrastructure, and engineering. Collaborations with IndianOil, L&T, Engie, Worley, Tata Group companies, HP, MAN Energy Solutions, and Cochin Shipyard indicate the ability to implement critical and high-specification flow control solutions by Quest Flow Controls.

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