Dolat Algotech Q2 profit rose sixfold on fair-value gains

Dolat Algotech Limited reported consolidated profit of Rs 30.029 crore for the quarter ended 30 September 2026, compared with Rs 4.595 crore a year earlier, as net gains on fair-value changes rose to Rs 79.599 crore from Rs 37.430 crore. Revenue and profit, however, were lower than in the June 2026 quarter.

Why did Dolat Algotech’s September-quarter profit rise year on year?

Dolat Algotech’s September-quarter profit rose because fair-value gains increased by Rs 42.169 crore year on year. Net gain on fair-value changes was Rs 79.599 crore in the quarter ended 30 September 2026, against Rs 37.430 crore in the corresponding quarter of 2025. The company states that its primary business is trading in shares and securities.

Revenue from operations increased to Rs 99.356 crore from Rs 58.917 crore, while total income was also Rs 99.356 crore because other income was nil in both September quarters. Interest income changed marginally to Rs 19.675 crore from Rs 19.593 crore, whereas dividend income fell to Rs 0.082 crore from Rs 1.894 crore.

Profit before tax rose to Rs 41.397 crore from Rs 8.172 crore despite total expenses increasing to Rs 57.959 crore from Rs 50.745 crore. Securities Transaction Tax, or STT, rose to Rs 34.961 crore from Rs 27.255 crore, while finance cost declined to Rs 10.496 crore from Rs 11.394 crore. Total tax expense was Rs 11.368 crore, compared with Rs 3.577 crore a year earlier.

How did Dolat Algotech’s results compare with June 2026?

Dolat Algotech’s profit declined 44% sequentially from Rs 53.864 crore in the quarter ended 30 June 2026. Revenue from operations fell to Rs 99.356 crore from Rs 140.398 crore, and profit before tax decreased to Rs 41.397 crore from Rs 73.248 crore. The September quarter therefore improved markedly on the prior year but was below the immediately preceding quarter.

The principal sequential change was lower net gain on fair-value changes, which declined to Rs 79.599 crore from Rs 120.277 crore. Interest income eased to Rs 19.675 crore from Rs 20.121 crore, and other income was nil after Rs 0.451 crore in June. These movements reduced total income to Rs 99.356 crore from Rs 140.850 crore.

Expenses also fell, to Rs 57.959 crore from Rs 67.602 crore. STT declined to Rs 34.961 crore from Rs 44.227 crore and exchange and clearing expenses fell to Rs 3.831 crore from Rs 4.937 crore. Employee benefits expense nevertheless rose to Rs 3.423 crore from Rs 2.638 crore, while depreciation and amortisation increased to Rs 0.887 crore from Rs 0.668 crore.

Dolat Algotech disclosed a net profit margin of 30.22% for the September 2026 quarter, down from 38.37% in June but above 7.80% a year earlier. Its operating-profit margin was 53.12%, compared with 60.33% in June and 34.10% in the September 2025 quarter. The company defines net profit margin as profit after tax divided by revenue from operations plus other operating income.

What do Dolat Algotech’s first-half results show?

Dolat Algotech reported profit of Rs 83.893 crore for the six months ended 30 September 2026, compared with Rs 43.526 crore in the corresponding prior-year period. Revenue from operations rose to Rs 239.754 crore from Rs 169.519 crore, while profit before tax increased to Rs 114.645 crore from Rs 63.022 crore.

Fair-value gains were Rs 199.877 crore in the first half, up from Rs 129.255 crore a year earlier. Interest income increased to Rs 39.796 crore from Rs 38.057 crore, while dividend income declined to Rs 0.082 crore from Rs 2.206 crore. The gain on fair-value changes was the largest revenue line in both half-year periods.

First-half expenses rose to Rs 125.109 crore from Rs 106.497 crore. STT increased to Rs 79.189 crore from Rs 61.507 crore and employee benefits expense rose to Rs 6.060 crore from Rs 5.361 crore. Finance cost declined to Rs 21.280 crore from Rs 21.717 crore, while exchange and clearing expenses decreased to Rs 8.767 crore from Rs 9.116 crore.

The six-month net profit margin was 34.99%, compared with 25.68% in the prior-year period, and the operating-profit margin was 57.34%, compared with 50.59%. Basic and diluted earnings per share were Rs 4.76 for the six months, versus Rs 2.46 a year earlier, on equity share capital of Rs 17.600 crore in both periods.

What changed in Dolat Algotech’s financial position and cash flow?

Dolat Algotech’s total assets were Rs 1,384.171 crore at 30 September 2026, down from Rs 1,536.007 crore at 31 March 2026. Bank balances other than cash and cash equivalents fell to Rs 1,107.238 crore from Rs 1,164.067 crore, and other financial assets declined to Rs 94.235 crore from Rs 258.554 crore. Investments increased to Rs 166.125 crore from Rs 84.675 crore.

Debt securities stood at Rs 107.019 crore at 30 September, compared with nil at 31 March, while borrowings other than debt securities fell to Rs 0.500 crore from Rs 283.712 crore. Other financial liabilities declined to Rs 46.620 crore from Rs 107.700 crore. Total equity increased to Rs 1,215.124 crore from Rs 1,130.323 crore, including Rs 1,196.524 crore in other equity at the September reporting date.

Net cash used in operating activities was Rs 30.038 crore for the six months ended 30 September 2026, compared with net cash generated of Rs 24.118 crore in the prior-year period. Operating profit before working-capital changes and provisions was Rs 115.727 crore, but the cash-flow statement recorded a Rs 283.212 crore decrease in borrowings and a Rs 61.081 crore decrease in other financial liabilities.

Cash and cash equivalents in the cash-flow statement were Rs 94.291 crore at 30 September 2026, compared with Rs 52.462 crore a year earlier. This included Rs 92.352 crore in liquid funds and Rs 1.939 crore of cash and cash equivalents. The disclosed current ratio was 4.09 times, compared with 2.31 times at 30 June 2026 and 2.08 times a year earlier.

What does Dolat Algotech disclose about segments and the review?

Dolat Algotech says it has no separate reportable segments under Indian Accounting Standard 108 because it is primarily engaged in trading shares and securities. The September 2026 filing therefore does not provide revenue, expenses or profit by strategy, customer category or business segment. The consolidated results include subsidiary Dolat Tradecorp.

Dolat Tradecorp contributed total income of Rs 31.438 crore in the quarter ended 30 September 2026 and Rs 64.534 crore in the six months ended that date. The auditor said it did not review the subsidiary’s interim financial results and based its conclusion relating to the subsidiary on information furnished by management. The auditor’s conclusion on the consolidated results was not modified.

Dolat Algotech’s audit committee reviewed, and its board approved, the September-quarter results on 14 November 2026. The statutory auditor conducted a limited review, which the report says is substantially narrower than an audit. Comparative figures for the June 2026 quarter, September 2025 quarter and year ended 31 March 2026 were reviewed or audited by the predecessor auditor.

Conclusion

Dolat Algotech’s year-on-year earnings increase in the quarter ended 30 September 2026 was principally associated with a Rs 42.169 crore increase in fair-value gains, which lifted profit to Rs 30.029 crore from Rs 4.595 crore. The sequential picture differed, as fair-value gains fell by Rs 40.678 crore from the June 2026 quarter and profit declined by Rs 23.835 crore.

The next issue to watch is updated financial information on Dolat Tradecorp, which supplied Rs 64.534 crore of first-half total income but whose interim results were not reviewed by the consolidated auditor. Dolat Algotech also reports no separate segments under Indian Accounting Standard 108, leaving subsequent consolidated filings as the disclosed measure of changes in its trading and securities business.