Algoquant Fin Q1 FY27 Results (NSE: ALGOQUANT)
Signal: Earnings grew
The read
The earnings inflection continued for a third consecutive quarter: consolidated EBITDA margin expanded to 33.6% from 17.2% a year earlier as EBITDA grew 179.0% versus revenue growth of 42.9%, but ₹6920.00 lakh of fair-value gains represented 88.9% of operating revenue, leaving the durability of the recovery dependent on trading gains rather than fee growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹77.87 Cr | 42.9% | +0.8% |
| EBIT | ₹25.16 Cr | 205.0% | |
| Net profit | ₹16.48 Cr | 271.2% | |
| EPS | ₹0.59 | 268.7% | |
| EBIT margin | 33.6% |
P&L walk
Consolidated revenue rose to ₹7787.04 lakh, +42.9% YoY and +0.8% QoQ, while EBITDA grew 179.0% YoY and margin expanded to 33.6% as operating expenses grew only 14.1% and employee costs 5.9%; PAT fell 1.9% QoQ because the previous quarter included a similar high-profit base.
Segments
The company reports one operating segment, but subsidiaries dragged consolidated PAT to ₹1647.97 lakh versus standalone PAT of ₹1652.05 lakh; two subsidiaries reported a combined net loss of ₹4.09 lakh.
Key positives
- Consolidated revenue reached ₹7787.04 lakh, up 42.9% YoY, reversing the 18.2% YoY decline reported in Q1FY26.
- EBITDA grew 179.0% YoY versus revenue growth of 42.9%, a 136.1 percentage-point growth gap, while EBITDA margin expanded 1640bps to 33.6%. Employee benefits rose only 5.9% YoY and depreciation declined 7.6% YoY, supporting the margin expansion.
- PAT rose 271.2% YoY to ₹1647.97 lakh with other income of only ₹0.86 lakh; EPS increased 268.7% to ₹0.59 and broadly tracked PAT.
Key concerns
- Net gain on fair-value changes of ₹6920.00 lakh grew 48.9% YoY and comprised 88.9% of operating revenue, making reported earnings highly exposed to trading and mark-to-market volatility.
- Fees and commission income declined 6.2% YoY to ₹516.68 lakh despite total revenue growth of 42.9%, indicating limited evidence of broad-based broking revenue momentum.
- Two subsidiaries reported a combined net loss of ₹4.09 lakh, resulting in consolidated PAT of ₹1647.97 lakh versus standalone PAT of ₹1652.05 lakh.
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