Quest Laboratories Ltd. (QUESTLAB)
SME CapPharma stocks · SME cap · NSE
Quest Laboratories Ltd. manufactures pharmaceutical formulations including antibiotics, antimalarials, antispasmodics, and diabetes treatments, available as tablets, liquid orals, and ointments. It operates across 16 Indian states and 2 UTs, with international presence in Myanmar, Cambodia, Thailand, and recent order from Angola. The company focuses on in-house R&D and quality control.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 50/100Rev -30% YoY · PAT +48% YoY · margin expansion · +6% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹32.4 Cr | -30.3% | +5.8% |
| EBITDA | ₹4.1 Cr | +411.1% | -40.1% |
| Operating margin | 12.8% | +1104 bps | -979 bps |
| PAT | ₹2.9 Cr | +47.9% | -28.8% |
| PAT margin | 8.9% | +468 bps | -431 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Q1 FY26 revenue grew 52% YoY to INR 23.18 Cr, but declined 50.1% QoQ. EBITDA surged 114.3% YoY to INR 3.81 Cr, with margin expanding 470 bps to 16.4%. PAT increased 178% YoY to INR 4.10 Cr. Significant sequential declines raise questions about quarterly consistency.
While Q1 FY26 showed strong YoY growth in revenue and profitability, the substantial QoQ decline across all key financial metrics is concerning. Management's focus on capacity expansion and new product lines is positive, but the execution and ramp-up of these initiatives are critical to stabilize sequential performance and achieve stated margin recovery targets.
Product wise Revenue Bifurcation - FY25
Latest issuer-disclosed distribution across 5 reported categories.
Export Market Expansion
Initiated export sales in 2025, expanding domestic sales to achieve 30% growth. Expecting ₹25 crore annual business from Myanmar. Recently secured a ₹2.0 crore order from Angola.
Injectable Facility
USFDA-compliant injectable facility under construction with oncology, ampoule, vial & dry injection lines, targeting domestic and export markets.
Capsule Production Line
Capsule Production Line setup is in progress, with expected revenue of 10 to 12 Cr in the current year.
New Product Lines
Launching a new collagen product line to diversify the portfolio and meet growing market demand.
Injectable Facility
USFDA-compliant injectable facility under construction with oncology, ampoule, vial & dry injection lines. Land acquired at Plot 44, Pithampur on April 7, 2025.
Capsule Production
Capsule Production Line setup is in progress, with a capacity of 1 Million+ capsules per day from Q2 FY26.
Capex Plan
INR 30-35 crore total capex over 3 years, enhancing manufacturing capacity and efficiency.
Global Demand for Indian Pharma
India's pharmaceutical exports reached US$ 27.9 billion in FY24, growing 9.7% YoY, reflecting strong global demand.
Cost Efficiency
India's pharma sector benefits from low manufacturing costs (30%-35% lower than US/Europe) and cost-efficient R&D.
Government Initiatives
Government initiatives like PLI scheme (Rs. 15,000 crore outlay) and schemes for bulk drug parks boost manufacturing and investment.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison highlights the company's growth trajectory against the previous year, which is important for a growing business. However, QoQ comparison is crucial to assess sequential momentum and the significant drop in revenue and profits from Q4 FY25 to Q1 FY26.
Domestic Formulations Growth
Revenue from Operations increased 52.0% YoY in Q1 FY26.
Export Growth
Initiated export sales in 2025. Expecting ₹25 crore annual business from Myanmar. Recently received a ₹2.0 crore order from Angola (May 2025).
Launch Pipeline
20 cardiovascular and diabetic drugs are under registration. R&D is in progress for 6 collagen products and other formulations. Launching a new collagen product line.
Approvals & Certifications
Holds FDA Approvals for more than 900 formulations. Has 1300+ licensed products. Certified with GMP, GLP, ISO 9001:2015, and MSME Zed Bronze.
Manufacturing Capacity Expansion
Expanding manufacturing capacity with the addition of two new Advanced Manufacturing Systems, enhancing efficiency through cutting-edge technology and R&D.
EBITDA Margin Recovery
Focused expansion, aimed at driving EBITDA margin recovery back to the 18–20% range through enhanced capacity and product mix.
International Market Expansion
Initiating order engagements in Cambodia, Angola, Kenya, Nigeria, Benin, Togo, Niger, Mali, Burkina Faso and neighboring regions to expand market presence.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| QoQ Revenue Growth | Q1 FY26 revenue declined 50.1% QoQ. | Stabilization and sequential growth in revenue, indicating effective market penetration and order execution. |
| Injectable Facility Progress | Land acquired, pharma consultant engaged for plant design. | Timely commissioning and ramp-up of the USFDA-compliant injectable facility and its contribution to revenue. |
| Capsule Production Revenue | Expected revenue of 10-12 Cr in current year. | Achievement of stated revenue targets from the new capsule production line. |
| EBITDA Margin | Q1 FY26 EBITDA Margin at 16.4%. | Progress towards management's target of 18-20% EBITDA margin recovery. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
36Bearishfull bear SMA stack · SMA20 -5.0% / mo · MACD − · near 52W low · sector +2.2pp vs Nifty (3M)
Technical chart
QUESTLABdaily · 1Y · AUTO-22.4%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 41.
- Price < SMA20 < SMA50 < SMA200 — full bearish stack.
- SMA20 falling (~5.2% over last month) — short-term momentum negative.
- RSI(14) at 41 — falling, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- Within 5% of 52-week low — testing support.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 74 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 74 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 17.1%.
- Fair-value margin of safety is positive at 79.3%.
- Valuation contributes 29/30 to the score.
Main drags
- Penalty bucket subtracts 7 points.
- Quality is weaker at 9/20; verify the latest quarterly trend.
- Cash flow is weaker at 5/10; verify the latest quarterly trend.
Healthcare valuation: PE/EVEBITDA with regulatory and pipeline checks
Healthcare valuation needs both earnings quality and regulatory/pipeline context.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 66th percentile of the scored universe and 54th percentile within Pharma. Main check: results consistency is weak at 50/100.
Healthy Trust Lite: Promoter holding is 66.8%. Key concern: Operating cash flow is negative at ₹-11 Cr.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Pharma: 54th pctile, median 70 · SME: 85th pctile, median 64
3 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 66.8%.
- ▸Promoter pledge is zero.
- ▸FCF yield is 17.1%.
- ▸Debt/equity is 0.08.
Trust risks
- ▸Operating cash flow is negative at ₹-11 Cr.
- ▸ROCE trend is -15.6%.
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
- ▸OPM spread across recent quarters is 30.5%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 9.33
- P/B
- 1.45
- EV/EBITDA
- 7.79
- Market Cap
- 140.00Cr
Profitability
- ROE
- 16.80%
- ROCE
- 18.40%
- ROA
- 13.51%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 30.00%
- EPS 5Y
- 87.00%
- Revenue 3Y
- 22.00%
- EPS 3Y
- 44.00%
Balance Sheet
- Debt/Equity
- 0.08
- Interest Coverage
- 9.00×
- Altman Z
- 8.46
- Book Value
- 59.10
Cash Flow
- FCF Yield
- 17.14%
- FCF Positive Y
- 2/5
- OCF
- -11.00 Cr
- EPS TTM
- 9.17
Shareholding
- Promoter Hold
- 66.78%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 2%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
Business-comparable names in Pharma, ranked by similarity
Peers
Business-comparable peers in Pharma — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.