Dolat Algotech Limited, the Gandhinagar-based algorithmic trading and financial services company, reported a 17.6% year-on-year increase in consolidated net profit for the quarter ended March 31, 2026, with PAT rising to ₹46.81 crore from ₹39.79 crore in Q4 FY25. Revenue from operations grew 10.5% year-on-year to ₹125.89 crore from ₹113.91 crore, reflecting sustained trading activity and volumes across Indian equity markets.
Q4 FY26 key numbers
Total income for the quarter was ₹125.92 crore against ₹113.93 crore in Q4 FY25. EBITDA came in at approximately ₹76.3 crore against ₹68.6 crore in Q4 FY25 — an 11.2% improvement — with EBITDA margin holding nearly flat at 60.61% versus 60.21%, a remarkably stable margin profile for an algorithmic trading business. Profit before tax was ₹64.53 crore against ₹55.92 crore in Q4 FY25 — a 15.4% year-on-year improvement. Total tax expense was ₹17.71 crore, producing the ₹46.81 crore net profit.
The expense structure reflects the nature of the business — Securities Transaction Tax was ₹32.83 crore in Q4, transaction charges ₹6.01 crore, and finance costs ₹11.11 crore. Employee benefits expense of ₹2.40 crore is notably low — consistent with a highly automated algorithmic trading operation that requires minimal headcount relative to revenue.
Full year FY26: The year the market normalised
The full-year numbers tell a story of normalisation after an exceptional FY25. Full-year consolidated revenue from operations was ₹403.58 crore against ₹529.90 crore in FY25 — a 23.8% decline. Full-year net profit was ₹129.33 crore against ₹216.06 crore in FY25 — a 40.1% decline. Full-year profit before tax was ₹181.97 crore against ₹300.94 crore in FY25.
The full-year decline is entirely a function of market conditions — FY25 was an exceptional year for Indian equity markets with elevated volumes, high volatility, and strong derivatives activity that directly feed Dolat Algotech’s revenue. FY26 saw normalisation of market volumes, particularly in the options segment after SEBI’s regulatory interventions to reduce speculative F&O activity. Securities Transaction Tax for the full year was ₹122.81 crore against ₹118.49 crore — a marginal increase despite lower revenues, reflecting the shift toward more STT-intensive instruments in the trading mix.
What the Q4 trajectory means
The sequential improvement from Q3 to Q4 — revenue up from ₹108.17 crore to ₹125.89 crore and profit up from ₹38.99 crore to ₹46.81 crore — is the more relevant forward signal. After several quarters of declining year-on-year comparisons against FY25’s elevated base, Dolat Algotech’s Q4 FY26 print shows both revenue and profit growing year-on-year. The 60.61% EBITDA margin — virtually unchanged from Q4 FY25’s 60.21% — confirms the business model’s structural efficiency is intact regardless of volume levels.
Dolat Algotech operates in a segment where scale matters enormously — the fixed costs of technology infrastructure, co-location, and regulatory compliance are largely invariant to volumes, meaning incremental trading revenue flows to the bottom line at high margins once those costs are covered.
This article is for informational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making any investment decisions.