Dolat Algotech Q1 FY27 Results (NSE: DOLATALGO)
Signal: Growth reaccelerated
The read
The recovery is extending beyond the Q2FY26 trough: consolidated revenue rose +26.9% YoY to ₹1403.98 million and PAT +38.7% to ₹538.64 million, while operating margin held above 60% for the second consecutive quarter after 34% in Q2FY26; however, Q1 standalone PAT of ₹538.18 million versus consolidated PAT of ₹538.64 million shows the subsidiary's ₹330.96 million income contributes little to group earnings.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹140.4 Cr | 26.9% | +11.5% |
| EBIT | ₹84.03 Cr | 28.9% | |
| Net profit | ₹53.82 Cr | 38.7% | |
| EPS | ₹3.06 | 39.1% | |
| EBIT margin | 60.33% |
P&L walk
Consolidated revenue of ₹1403.98 million grew +26.9% YoY and +11.5% QoQ; operating margin improved to 60.33% from 59.37% YoY but eased 36bps QoQ, while PAT rose +38.7% to ₹538.64 million as PBT grew +33.5% and other income remained immaterial at ₹4.51 million.
Segments
There is no reportable segment table, but the subsidiary contributed ₹330.96 million of total income while consolidated PAT exceeded standalone PAT by only ₹0.46 million, indicating that nearly all earnings remain with the parent and the subsidiary is not materially lifting group profitability.
Key positives
- Consolidated revenue reached ₹1403.98 million, +26.9% YoY and +11.5% QoQ, marking a clear recovery from ₹59 million in Q2FY26.
- PAT rose +38.7% YoY to ₹538.64 million, ahead of revenue growth, while net profit margin expanded to 38.37% from 35.20% YoY.
- Operating margin improved 96bps YoY to 60.33%; employee cost grew only +2.8% YoY and finance cost +4.5% YoY against revenue growth of +26.9%.
- Interest-service coverage improved to 7.79x from 6.31x YoY and debt-equity declined to 0.23x from 0.43x.
Key concerns
- The consolidated operating margin of 60.33% declined 36bps QoQ from 60.69%, so the Q3FY26-Q4FY26 margin recovery has not yet accelerated.
- The subsidiary contributed ₹330.96 million of total income but only ₹0.46 million of non-controlling-interest profit; consolidated earnings remain almost entirely dependent on the parent.
- Securities transaction tax rose +29.1% YoY to ₹442.27 million, remaining the largest disclosed expense and exposing profitability to trading-activity economics.
Research and educational content only. Not investment advice.