Algoquant Fintech Limited Financial Year 2025-26
1.1 Global Economic Environment
The global economy remained resilient during the financial year, although growth continued to be influenced by inflationary pressures, changing monetary policies, geopolitical tensions, trade-related developments and volatility in energy and commodity markets. In 2026, the global economy is undergoing a moderate recovery, with the International Monetary Fund projecting global growth at around 3.1%. The outlook remains constrained by trade tariffs, geopolitical uncertainties and disruptions in energy markets. The U.S. economy continues to benefit from strong AI-driven investments estimated at around US $650 billion, while the Federal Reserve has maintained its policy rate in the range of 3.5%-3.75%, reflecting a cautious approach amid continuing uncertainty. Growth in Europe is expected to remain modest at around 1.1%, supported by policy easing and increased defence spending, while Chinas growth is expected to remain in the range of 4.5% - 5% indicating a gradual shift towards more measured and sustainable growth.
Against this backdrop, India continues to maintain its position as one of the fastest-growing major economies. The Reserve Bank of India has revised its FY2026-27 GDP growth projection to 6.9% taking into account external headwinds and the evolving global environment. Retail inflation is projected at around 4.6% for FY2026-27, primarily due to supply-side pressures and energy costs, while remaining within the RBIs tolerance band. Indias macroeconomic position is further supported by a narrowing current account deficit of around 0.8% and a projected fiscal deficit of 4.4% for FY2025-26. High-frequency indicators have also remained encouraging, with GST collections increasing by 8.2% year-on-year and industrial output registering a 5.2% increase, supported largely by manufacturing activity.
Looking ahead, Indias economic outlook remains supported by strong domestic fundamentals and structural growth drivers. Rapid digitalisation, continued infrastructure development, growing domestic consumption and strategic free trade agreements are expected to support economic activity and strengthen Indias resilience to external uncertainties. While global trade conditions, geopolitical developments, energy prices and monetary policies may continue to present challenges, Indias diversified economy and improving domestic capabilities provide a favourable foundation for sustained growth over the medium to long term.
1.2 Indian Economy Overview
Indias capital markets remained resilient in 2026 despite heightened global volatility, supported by strong domestic investor participation and steady inflows. Retail participation continued to grow, with demat accounts crossing 21.6 crore, reflecting the continued shift of household savings towards financial assets. Monthly SIP inflows also remained strong at over ?‚?30,000 crore, providing consistent liquidity to the markets. The banking sector continued to maintain healthy fundamentals, with bank credit expected to grow by around 13%, supported by demand from the retail, MSME and infrastructure segments. Asset quality also improved, with gross NPAs falling below 3%, while capital adequacy levels remained comfortably above regulatory requirements. NBFCs continued to witness steady growth, particularly in rural and MSME-focused segments, despite relatively tighter liquidity conditions.
Growth of the Indian economy Real GDP growth (%) - annual comparison for five financial years. Base: FY2022-23 prices
| FY 21-22 | FY22-23 | FY23-24 | FY 24-25 | FY 24-25 |
| 7.6 | 9.2 | 6.4 | 6.2 | 7.7 |
Growth of the Indian economy quarter by quarter Quarterly real GDP growth shows the pace of expansion through FY2025-26. (A bar chart shows Q1 FY25-26 at 6.8%, Q2 FY25-26 at 8.3%, Q3 FY25-26 at 8.0%, and Q4 FY25-26 at 7.8%) Source- www.mospi.gov.in
Equity markets remained volatile during the year, largely due to Foreign Institutional Investor (FII) outflows, elevated valuations and changes in global yields. However, strong participation from Domestic Institutional Investors (DIIs) helped absorb these outflows and supported overall market stability. Market leadership also gradually shifted towards domestic cyclical sectors, with PSU banks, capital goods, automotive and defence companies benefiting from stronger earnings visibility and continued government focus on capital expenditure. Meanwhile, the fintech ecosystem continued to expand rapidly, with UPI transactions reaching a record 22.64 billion in March 2026. Regulatory initiatives, including digital KYC, are further supporting financial inclusion, improving access to credit and strengthening transparency across the financial system. Overall, strong domestic liquidity and healthy corporate earnings provide a positive foundation for the Indian capital markets, notwithstanding the near-term volatility in global markets.
Algoquant Fintech Limited (hereafter referred to as Your Company) has emerged as the torchbearer in the field of algo trading. We offer a variety of financial services, specializing in high-frequency and strategy-based trading across all Indian exchanges, including those for equities, commodities, and currencies. We provide automation in financial transactions across a wide range of asset classes led by different specific technology solutions. We have established ourselves as a true financial giant and are the frontrunners in providing algo trading solutions to clients both in India and abroad. We aim to cater to the new age retail and institutional customers grow and multiply their investments.
During the financial year under review, the Company continued to focus on strengthening its core operations while responding to changing market conditions and evolving customer requirements.
The Companys strategic priorities during the year were focused on strengthening its core business, leveraging opportunities arising from the favourable long-term outlook for the financial services sector, enhancing operational efficiency through technology and automation, improving customer experience and strengthening risk-management and governance frameworks to support sustainable long-term growth.
The key strategic focus areas include:
3.1 Strengthening Core Business The Company continues to focus on strengthening its core business capabilities and enhancing productivity across its principal business verticals. The Company seeks to leverage the favourable long-term economic outlook and the growing participation of investors in financial markets to expand and strengthen its financial services operations.
3.2 Leveraging Market Opportunities The Company remains focused on capitalising on the growing allocation of discretionary income towards financial services and the increasing participation of investors across market segments. The Company seeks to leverage these structural trends to create sustainable growth opportunities in its core business and financial-instrument-related services.
3.3 Customer-Centric Growth The Company continues to focus on understanding evolving customer requirements and delivering technology-enabled products and services that are responsive to changing market needs. The Company aims to enhance customer engagement, improve service delivery and provide efficient and convenient solutions to its customers.
3.4 Technology and Digital Transformation Technology remains a key strategic priority for the Company. The Company continues to leverage its technology capabilities to implement automated and digitalised processes, improve operational efficiency, reduce turnaround time and strengthen internal controls. The Company also utilises Risk Management Systems (RMS), risk-monitoring tools and technology-enabled solutions to support effective risk management and operational discipline.
The Company is also focused on leveraging algorithmic and quantitative trading solutions, wherever appropriate to its business activities, to enhance efficiency, support informed decision-making and strengthen its technology-driven capabilities.
3.5 Operational Efficiency The Company continues to evaluate its cost structure, business processes and operating model with a view to improving productivity and ensuring efficient utilisation of resources. Increased adoption of automation and digital processes is expected to support process standardisation, reduce manual intervention and improve overall operational effectiveness.
3.6 Risk, Governance and Regulatory Compliance The Company remains committed to maintaining robust governance, regulatory compliance and risk-management systems commensurate with the nature and scale of its operations. The Company continues to monitor regulatory developments and evolving market conditions and seeks to strengthen its internal systems and controls to ensure prudent and sustainable business growth. The Company also recognises that regulatory developments can contribute to increased investor engagement and broader participation in financial markets, thereby creating opportunities for the financial services sector.
The Company is a technology driven trading entity. Involved in Business activities of trading in securities/financial instruments. We are one of the leaders in Low-risk arbitrage and high frequency trading in the Indian Capital Markets. There is no Segment distribution of business of Your Company.
5.1 Financial Performance The financial performance of the Company during FY 2025-26 reflects the combined impact of business volumes, operating performance, cost management, financing costs, market conditions and other factors relevant to its business.
| Particulars | Standalone FY 2025-26 | Standalone FY 2024-25 | Consolidated FY 2025-26 | Consolidated FY 2024-25 |
| Revenue from Operations | 23,546 | 23,454.52 | 23,545.98 | 23,470.18 |
| Other Income | 4.15 | 4.12 | 4.16 | 4.12 |
| Total income from Operations | 23,550.15 | 23,458.64 | 23,550.14 | 23,474.30 |
| Total Expenses | 19,467.48 | 19,678.63 | 19,401.88 | 19,762.78 |
| Profit before Taxation | 4,082.67 | 3,780.01 | 4,148.26 | 3,711.52 |
| Less: Tax Expenses | 808.27 | 522.08 | 808.27 | 522.08 |
| Profit after Tax | 3,274.40 | 3,257.93 | 3,339.99 | 3,189.44 |
| Earnings Per Share | 1.16 | 1.16 | 1.19 | 1.13 |
5.2 Revenue Revenue from operations increased by 0.39%. The movement in revenue was influenced by changes in business volumes, service mix, market conditions etc.
5.3 Expenditure Total expenditure decreased by 1.07% during the year, reflecting the Companys continued focus on cost optimisation, operational efficiency and prudent financial management.
5.4 Profitability Profit before Tax stood at 4,082.67 lakhs compared with 3,780.01 lakhs in the previous year. Profit after Tax stood at 3,274.40 lakhs compared with 3,257.93 lakhs in the previous year.
5.5 Cash Flow and Liquidity The Companys liquidity position remained comfortable during the year. The Company continued to monitor operating cash flows, working capital requirements, financing requirements, debt obligations and liquidity buffers. The Company remains focused on maintaining adequate liquidity to meet its operational and financial obligations.
The Companys capital structure as at March 31, 2026 comprised equity shareholders funds. During the year, the Company undertook 1:2 stock split and 8:1 bonus issue. These corporate actions were undertaken with the objective of improving the accessibility of the Companys equity shares, broadening investor participation and supporting greater liquidity in the market. The Company continues to assess its capital requirements in light of business growth, regulatory requirements, liquidity considerations and long-term strategic objectives.
The following key ratios provide an assessment of the Companys financial performance and position. Significant changes should be accompanied by a clear explanation of the reasons for such change.
| Performance | FY 2025-26 | FY 2024-25 | Explanation for Significant Change |
| Interest Coverage Ratio | 6.78 Times | 6.79 times | NA |
| Current Ratio | 1.72 Times | 1.73 times | NA |
| Net Profit Margin (%) | 13.90% | 13.89% | NA |
| Debtors Turnover | NA | NA | NA |
| Inventory Turnover | NA | NA | NA |
| Debt Equity Ratio | 0.22 Times | 0.29 times | NA |
| Return on Net Worth (%) | 27.69 | 32.00% | NA |
| Operating Profit Margin (%) | 50.01% | 52.60% | NA |
Opportunities Trading in Financial Instruments services will have more opportunities if the long-term Economic outlook is favourable. Growing percentage of discretionary income going to the financial services industry. This places us in a sweet spot to leverage the growth opportunity the sector presents. Regulatory changes would encourage increased engagement from investors of all types. Strong Tech Expertise- We are providing hi-tech solutions to our esteemed client. We implement RMS and ensure adoption of automated solutions and digitalized processes. Our algo trading strategy platform is based on algorithmic and quantitative trading solutions and risk monitoring tools making use of technology to support best practices and procedures.
Threats Short-term economic slowdown impacting investor sentiments and business activities. Other assets are becoming more appealing as investment opportunities due to market changes.
Risk management remains an integral part of the Companys business strategy and decision-making framework. The Company follows a structured approach to identify, assess, monitor and mitigate material risks arising from its operations. The Company has laid down procedures to inform Board Members about the risk assessment and minimization procedures.
The Company considers human capital to be a key pillar of growth. Its skilled and professional management team is a strong driving force. The Company ensures a safe, conducive, and productive work environment. The HR policies continually strive towards attracting, retaining, and developing the best talent required for the business to grow. To provide a constant and consistent connection as well as uninterrupted services, the Company has used technology to promote regular communication in its staff personnels. There were 250 employees working in the company as on the financial year ended on March 31, 2026.
Our focus remained to continuously invest in personnel, technology and improve the size of balance sheet. We are on track to achieve several milestones as per our internal forecasts. The roadmap appears equally encouraging and we are ready to march to the next leg of growth that will demonstrate our growing capabilities at scale as well as expertise in several complex trading strategy. The industry is supportive, and the demand scenario continues to be favourable. Our objective is to continue on this profitable growth journey and deliver sustained value for our stakeholders.
The Company has adequate internal control procedures commensurate with the size of the Company and the nature of its business. These systems are designed to ensure that all the assets of the Company are safeguarded and protected against any loss and that all the transactions are properly authorized recorded and reported. The Audit Committee of the Board of Directors actively reviews the adequacy and effectiveness of internal control systems and suggests improvements to strengthen the same.
The Board of Directors has framed a procedure which ensures the orderly and efficient conduct of its business, safeguarding of its assets, to provide greater assurance regarding prevention and detection of frauds and accuracy and completeness of the accounting records of the company. Further, your Company has adequate internal financial control with reference to its financial statements.
The Company has established internal financial controls with reference to its financial statements, commensurate with the size and complexity of its operations.
The internal financial control framework includes controls relating to maintenance of accounting records; authorisation and approval of transactions; safeguarding of assets; prevention and detection of fraud; accuracy and completeness of financial information; appropriate recording of transactions; preparation of financial statements; compliance with applicable accounting standards; and timely identification and correction of financial reporting errors.
The adequacy and operating effectiveness of internal financial controls are reviewed through management processes, internal audit and other assurance mechanisms.
Based on the assessments carried out during the year, management believes that the Companys internal financial controls were adequate and operating effectively as at March 31, 2026, subject to the observations, if any, reported by the statutory auditors.
Certain Statements in the "Management Discussion and Analysis" describing the Companys objectives, expectations or predictions may be forward looking Actual results could differ materially from those expressed or implied due to various risk & uncertainties. Important factors that could make a difference to the Companys operations include changes in Govt. regulations, tax regimes, economic developments and other factors such as litigation. The company does not undertake to update these statements.
| By order of Board of Directors | |
| For Algoquant Fintech Limited | |
| sd/- | sd/- |
| Devansh Gupta | Dhruv Gupta |
| Managing Director | Whole Time Director |
| DIN:06920376 | DIN:06920431 |
| Place: New Delhi | |
| Date: 29-08-2026 |
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