How has been the historical performance of Algoquant Fin?

Revenue and Profitability Trends

Algoquant Fin’s net sales surged from ₹156.41 crores in March 2024 to ₹234.70 crores in March 2025, marking a robust increase of approximately 50%. This growth in top-line revenue was accompanied by a rise in total operating income, which matched net sales figures as there was no other operating income reported in either year. Despite the revenue growth, the company’s operating profit margin (excluding other income) declined from 27.99% to 20.55%, reflecting increased expenditure pressures.

Total expenditure excluding depreciation rose sharply from ₹112.63 crores to ₹186.46 crores, driven primarily by higher employee costs and manufacturing expenses. Employee costs increased by nearly 37%, while manufacturing expenses almost doubled, indicating expanded operational activities or increased input costs. Other expenses also rose moderately.

Operating profit (PBDIT) excluding other income improved modestly from ₹43.78 crores to ₹48.24 crores, while the overall operating profit including other income edged up to ₹48.28 crores from ₹44.09 crores. Interest expenses decreased significantly from ₹10.19 crores to ₹6.53 crores, easing the financial burden and contributing to a higher gross profit before depreciation and tax.

Profit before tax increased from ₹30.72 crores to ₹37.12 crores, and profit after tax rose from ₹24.58 crores to ₹31.89 crores, reflecting a healthy bottom-line growth of nearly 30%. The profit after tax margin, however, saw a slight contraction from 15.72% to 13.59%, consistent with the margin pressure observed at the operating level.

Balance Sheet and Financial Position

The company’s shareholder funds strengthened considerably from ₹68.90 crores in March 2024 to ₹100.95 crores in March 2025, supported by an increase in equity capital and reserves. Equity capital nearly doubled, reflecting possible capital infusion or share issuance, while reserves grew by over 45%, signalling retained earnings accumulation.

Algoquant Fin maintained a debt-free position in terms of long-term borrowings, with zero secured or unsecured loans reported in both years. Short-term borrowings were reduced by more than half, from ₹61.46 crores to ₹29.50 crores, indicating improved liquidity management and reduced reliance on external financing.

Total liabilities decreased substantially from ₹300.02 crores to ₹210.29 crores, driven by lower current liabilities and non-current liabilities. The company’s total assets correspondingly declined from ₹300.02 crores to ₹210.29 crores, reflecting a leaner asset base.

Non-current investments nearly tripled from ₹10.55 crores to ₹31.90 crores, suggesting strategic deployment of funds into longer-term assets. Current assets decreased from ₹283.05 crores to ₹186.55 crores, largely due to a reduction in cash and bank balances and short-term loans and advances. Cash and bank balances dropped sharply from ₹205.91 crores to ₹117.62 crores, while short-term loans and advances also halved.

Net current assets improved from ₹39.74 crores to ₹62.89 crores, indicating better working capital management despite the overall reduction in current assets.

Cash Flow Analysis

Cash flow from operating activities showed a remarkable turnaround, rising from a negative ₹10 crores in March 2024 to a positive ₹60 crores in March 2025. This improvement was supported by a positive change in working capital and higher profit before tax. Conversely, cash flow from investing activities turned negative at ₹33 crores, compared to a positive inflow of ₹18 crores the previous year, reflecting increased investment outlays.

Financing activities saw a higher cash outflow of ₹37 crores versus ₹7 crores in the prior year, possibly due to debt repayments or dividend payments. Overall, the company recorded a net cash outflow of ₹11 crores in March 2025, compared to a marginal inflow of ₹1 crore in March 2024. Closing cash and cash equivalents declined from ₹13 crores to ₹2 crores, signalling tighter liquidity at the year-end.

Summary of Historical Performance

In summary, Algoquant Fin has exhibited strong revenue growth and improved profitability over the last fiscal year, despite some margin compression. The company’s balance sheet has strengthened with increased equity and reduced debt, while cash flow from operations has turned positive, signalling enhanced operational efficiency. However, the decline in cash reserves and increased investing outflows warrant close monitoring for liquidity management going forward.

Investors should weigh these factors alongside sector trends and peer performance to assess Algoquant Fin’s potential as part of a diversified portfolio.

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