Algoquant Fintech Q2 profit falls 64% as fair-value gains retreat

Algoquant Fintech Limited reported unaudited consolidated profit of Rs 5.88 crore for the quarter ended 30 September 2026, down 64% from Rs 16.48 crore in the preceding quarter, as net gains on fair-value changes fell to Rs 16.61 crore from Rs 69.20 crore despite higher fee, commission and interest income.

Why did Algoquant Fintech’s Q2 profit fall sequentially?

Algoquant Fintech’s profit fell because a Rs 52.59 crore sequential reduction in net gain on fair-value changes outweighed higher fee, commission and interest income. Net gain on fair-value changes was Rs 16.61 crore in the quarter ended 30 September 2026, compared with Rs 69.20 crore in the quarter ended 30 June 2026, a decline of about 76%.

Total income declined to Rs 39.72 crore from Rs 77.88 crore over the two quarters, while total expenses fell to Rs 31.78 crore from Rs 55.76 crore. Profit before tax was Rs 7.94 crore, down from Rs 22.11 crore, and tax expense declined to Rs 2.05 crore from Rs 5.63 crore.

Lower expenses partly offset the revenue decline: operating expenses fell to Rs 18.42 crore from Rs 34.44 crore and employee-benefit expense fell to Rs 3.88 crore from Rs 13.43 crore. Finance costs, however, increased to Rs 5.99 crore from Rs 3.05 crore in the same comparison.

How did Algoquant Fintech’s operating income change in Q2?

Algoquant Fintech’s fee and commission income rose to Rs 11.77 crore in the September 2026 quarter from Rs 5.17 crore in the June 2026 quarter, while interest income increased to Rs 11.27 crore from Rs 3.50 crore. Both income lines expanded even as fair-value gains, the largest disclosed revenue contributor in each quarter, retreated.

Fee and commission income was also above Rs 29.02 lakh in the quarter ended 30 September 2025, while interest income was Rs 2.40 crore a year earlier. The September 2026 quarter’s Rs 16.61 crore net gain on fair-value changes was below Rs 46.48 crore in the prior-year quarter, and total income declined to Rs 39.72 crore from Rs 51.28 crore.

For the half year ended 30 September 2026, fee and commission income was Rs 16.94 crore, compared with Rs 7.80 crore in the prior-year half, while interest income reached Rs 14.77 crore from Rs 4.92 crore. Net gain on fair-value changes declined to Rs 85.81 crore from Rs 92.96 crore, but total income rose to Rs 117.60 crore from Rs 105.79 crore.

Algoquant Fintech reported one operating segment under Indian Accounting Standard (Ind AS) 108: trading in financial instruments and stockbroking. The filing therefore does not provide separate segment revenue or profit figures for fees, interest income or fair-value movements.

What were Algoquant Fintech’s half-year profit and expenses?

Algoquant Fintech’s consolidated profit for the half year ended 30 September 2026 was Rs 22.36 crore, compared with Rs 10.73 crore for the half year ended 30 September 2025. Profit before tax increased to Rs 30.05 crore from Rs 15.46 crore, while total tax expense rose to Rs 7.69 crore from Rs 4.73 crore.

Total expenses for the six-month period declined to Rs 87.54 crore from Rs 90.33 crore despite finance costs increasing to Rs 9.04 crore from Rs 2.13 crore. Employee-benefit expense declined to Rs 17.31 crore from Rs 22.71 crore, operating expenses decreased to Rs 52.86 crore from Rs 56.65 crore, and other expenses were Rs 6.25 crore versus Rs 6.57 crore.

Basic and diluted earnings per equity share were Rs 0.21 for the September 2026 quarter, against Rs 0.59 in the June 2026 quarter and Rs 0.22 in the September 2025 quarter. Algoquant Fintech stated that interim earnings per share were not annualised; paid-up equity share capital was Rs 28.11 crore, with a face value of Rs 1 per share.

Algoquant Fintech’s board approved the unaudited consolidated results on 14 November 2026 after audit committee review. The statutory auditor’s limited-review conclusion stated that nothing had come to its attention indicating that the statement lacked required disclosures or contained a material misstatement.

What do Algoquant Fintech’s balance sheet and cash flows show?

Algoquant Fintech’s total assets rose to Rs 374.34 crore at 30 September 2026 from Rs 275.19 crore at 31 March 2026, while total liabilities increased to Rs 217.51 crore from Rs 140.72 crore. Total equity increased to Rs 156.83 crore from Rs 134.47 crore, including other equity of Rs 128.72 crore compared with Rs 106.36 crore.

Bank balances other than cash and cash equivalents increased to Rs 200.58 crore from Rs 129.99 crore, investments rose to Rs 75.06 crore from Rs 53.60 crore, and derivative financial instruments increased to Rs 15.26 crore from Rs 2.59 crore. Borrowings rose to Rs 44.77 crore from Rs 30.83 crore, while other financial liabilities were Rs 156.42 crore versus Rs 85.83 crore.

Cash and cash equivalents fell to Rs 2.85 crore at 30 September 2026 from Rs 26.73 crore at 31 March 2026. For the half year, net cash used in operating activities was Rs 16.06 crore, compared with net cash generated of Rs 22.97 crore a year earlier; the filing records a Rs 70.58 crore increase in bank balances other than cash equivalents as a working-capital movement.

Net cash used in investing activities was Rs 17.67 crore in the half year, compared with Rs 14.71 crore a year earlier, including Rs 11.55 crore of net investment purchases. Net cash generated from financing activities was Rs 9.84 crore, against net cash used of Rs 3.05 crore in the prior-year period, as net borrowing proceeds were Rs 13.94 crore.

Conclusion

Algoquant Fintech’s September 2026 quarter combined a sequential decline in profit with growth in fee, commission and interest income. The reduction in net gains on fair-value changes to Rs 16.61 crore from Rs 69.20 crore was the principal change, reducing total income by Rs 38.16 crore quarter on quarter and leaving profit at Rs 5.88 crore.

The next disclosed development is Algoquant Fintech’s Rs 52.50 lakh post-quarter investment in subsidiary AQ Capital Services Private Limited through its rights issue of 52,500 equity shares at Rs 100 each. Algoquant Fintech said its ownership percentage did not change; subsequent results will show any effect alongside movements in fair-value gains, borrowings and operating cash flow.