DOLATALGO - Dolat Algotech

📊 NSE: DOLATALGO 🏢 Finance & Investments 📅 Last Updated: 12/13/2025 21:38

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 40.64% YoY to INR 529.90 Cr in FY25. Standalone revenue grew 38.74% to INR 423.81 Cr. The company reports no separate segments as it is primarily engaged in trading shares and securities.

Geographic Revenue Split

Not disclosed in available documents; operations are primarily focused on the Indian capital markets through the National Stock Exchange (NSE).

Profitability Margins

Consolidated Net Profit Margin was 40.77% in FY25 (INR 216.06 Cr PAT), compared to 41.87% in FY24 (INR 157.75 Cr PAT). Standalone PAT margin for FY25 was 50.83% (INR 215.44 Cr PAT).

EBITDA Margin

Core profitability, indicated by the inverse of the cost-to-income ratio, was 39.7% in 6MFY25, improving from 37.5% in FY24 and 36.2% in FY23.

Capital Expenditure

Not disclosed in absolute INR Cr; however, the company maintains significant investments in physical infrastructure and hardware for high-frequency trading (HFT).

Credit Rating & Borrowing

Rated by CRISIL Ratings; gearing remains low historically at 0.1x to 0.2x. Specific borrowing costs and interest rate percentages were not disclosed.

⚙️ Operational Drivers

Raw Materials

Not applicable for financial services; capital is the primary resource with a consolidated group networth of INR 2,728 Cr as of September 30, 2024.

Import Sources

Not applicable for financial services.

Key Suppliers

Not applicable; primary dependencies include stock exchanges (NSE) and technology vendors for HFT infrastructure.

Capacity Expansion

Not applicable in MT/MW; growth is driven by capital deployment and algo-trading model efficiency. Networth grew 7.5% from March 2024 to September 2024.

Raw Material Costs

Not applicable for financial services.

Manufacturing Efficiency

Cost-to-income ratio of 60.3% in 6MFY25, reflecting operational efficiency in proprietary trading desks.

Logistics & Distribution

Not applicable for financial services.

📈 Strategic Growth

Expected Growth Rate

Not disclosed

Growth Strategy

Growth is achieved by capturing market inefficiencies using highly complex, in-house developed algo-trading models and expanding delta-hedged derivative strategies in the Futures & Options segment.

Products & Services

Proprietary trading in shares, securities, commodities, and financial products; risk-neutral delta-hedged derivatives trading (Futures & Options); equity arbitrage; and institutional broking.

Brand Portfolio

Dolat Algotech, Dolat Capital, Dolat Tradecorp.

Market Expansion

Not disclosed in available documents; growth is linked to the overall expansion of stock trading volumes in India.

Market Share & Ranking

The group is a pioneer in algo strategies with considerable market volume in the derivatives segment at the National Stock Exchange (NSE); specific ranking not disclosed.

🌍 External Factors

Industry Trends

The industry is seeing a shift towards larger digital and bank-based brokers for retail, while proprietary trading remains competitive with high barriers related to HFT infrastructure.

Competitive Landscape

Intense competition in proprietary trading requires significant ongoing investments in physical infrastructure and best-in-class trading systems.

Competitive Moat

Sustainable moat derived from 40+ years of promoter experience, an established track record in risk management, and proprietary algo-trading models.

Macro Economic Sensitivity

Sensitive to India's economic growth, international business environment policies, and geopolitical tensions affecting commodity prices.

Consumer Behavior

Not applicable as the business is primarily proprietary and does not cater to retail broking.

Geopolitical Risks

Geopolitical tensions and rising commodity prices are noted as factors that could adversely affect the capital market industry.

⚖️ Regulatory & Governance

Industry Regulations

Excluding SEBI matters: Impacted by national fiscal policies and tax amendments from the Union Budget 2024-25.

Environmental Compliance

Not applicable for financial services.

Taxation Policy Impact

Impacted by increased tax rates for Long-Term Capital Gains (LTCG), Short-Term Capital Gains (STCG), and Securities Transaction Tax (STT) as per the Union Budget 2024-2025.

⚠️ Risk Analysis

Key Uncertainties

High reliance on a single revenue stream (proprietary trading) and vulnerability to regulatory changes that could impact derivative volumes and profitability.