Quadrant Future Tek is a research-focused company that develops advanced train control and signalling systems as part of the Indian Railways' KAVACH project. These systems are designed to provide the highest levels of safety and reliability for rail passengers. The company also operates a specialty cable manufacturing facility equipped with an Electron Beam Irradiation Centre. These specialty cables are used in railway rolling stock and the naval defense industry. The company's product portfolio includes railway rolling stock cables, naval defense and marine cables, solar PV cables, automotive cables, connectors, and junction boxes.

Quadrant Future Tek manufactures specialty cables designed for industrial applications where fire safety, lightweight properties, and long-term performance are critical. The company uses in-house developed low-smoke, fire-resistant polymers for cable insulation and sheathing, which are enhanced through electron beam radiation treatment. This process improves the mechanical and thermal properties of the cables.
The company operates a 2.5 MeV electron beam industrial accelerator at its cable manufacturing facility.
This technology enhances the mechanical strength, abrasion and thermal resistance, flame propagation resistance, and deformation resistance of the specialty cables. It also extends the cables' lifespan compared to chemically cross-linked alternatives.
Quadrant Future Tek holds several national and international certifications for its specialty cables division, including accreditations from NQA (National Quality Assurance) Certification Limited and ROHS (Restriction of Hazardous Substances) Certification Private Limited.
As a technology and innovation-focused company, Quadrant adheres to IRIS/TS standards (International Railway Industry Standard) and maintains stringent quality systems for its specialty cables. The in-house testing facility is equipped to perform tests for its Train Control and Signaling Division, meeting internationally recognised standards such as Deutsches Institut für Normung (DIN), International Union of Railways (UIC), British Standard (BS), Underwriters Laboratories (UL) and Conformité Européene (CE).
The manufacturing facility is ISO 9001:2015 certified for quality management systems and ISO 14001:2015 certified for environmental management systems.
Quadrant Future Tek has designed and developed both the hardware and software for the KAVACH prototype, which has been implemented by Indian Railways. The KAVACH system complies with Safety Integrity Level-4 (SIL-4) as per the European Committee for Electrotechnical Standardisation (CENELEC) standards and is adopted by the Research Designs & Standards Organisation (RDSO).
The company has seen a consistent increase in profit after tax (PAT). PAT increased from Rs 1.94 crore in FY22 to Rs 13.90 crore in FY23 to Rs 14.71 crore in FY24.
Quadrant Future Tek relies on a single manufacturing facility. Any disruption or sudden shutdown of operations in the facility could negatively affect its business' finances and overall performance.
The company received a purchase order from Chittaranjan Locomotive Works (CLW) on December 12, 2024, for the supply, installation, testing, and commissioning of On-board Kavach equipment for 1,200 locomotives, totalling Rs 978.61 crore (including taxes). Any failure to meet delivery deadlines or fulfil maintenance obligations could adversely affect the company's financial performance and operations.
The company, its directors and its promoters are involved in certain ongoing legal proceedings, including some criminal cases. Any adverse judgment in any of these cases could be detrimental to the company's business prospects.
A major portion of the company's revenue comes from a small number of customers. The top 10 customers contributed Rs 62.31 crore (95.66%) for the six months ending September 30, 2024, and Rs 130.81 crore (86.20%), Rs 145.36 crore (95.13%), and Rs 100.25 crore (96.16%) in FY24, FY23, and FY22, respectively to the revenue from operations. A loss of any of these clients or a reduction in business from any of them could adversely affect the company's operations and finances.
The company's current operations in specialty cables, revenue generation and future plans in Train Control Products and Solutions are significantly dependent on Indian Railways and the Defence (naval) sector. These sectors contributed Rs 28.72 crore (44.09%) for the six months ending September 30, 2024, and Rs 105.61 crore (69.60%), Rs 112.10 crore (73.36%), and Rs 59.29 crore (56.87%) in FY24, FY23, and FY22, respectively to the revenue from operations. Any sudden or adverse changes within these sectors could negatively affect the company's operations and finances.
The software and programming development within the Train Control & Signalling division is highly complex, with the risk of undetected defects or errors. Since it has yet to complete the necessary field trials required by the RDSO, failure to pass these trials could disqualify the product and require additional investment for corrections, potentially damaging the company's financial standing.
As of the six months ending September 30, 2024, the company's indebtedness amounted to Rs 98.01 crore. Any inability to repay or service these loans could adversely affect the company's financial position.
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