Algoquant Fintech Ltd Forensic Report - SOIC x StockScans Report

as of Sep 2026

Algoquant Fintech's audit record is clean on its face. But the surrounding disclosures carry a consistent pattern: related-party limits that dwarf the company's own turnover, promoter pledges that surged from 1.5% to 32.4% in one year, and borrowing authorisations raised to ₹1,000 crore while actual borrowings stayed small.

Key findings

  1. Related-party limits sought for FY2026-27 dwarf the company's own turnover Major - For FY2026-27, the company seeks approval for related-party transactions of ₹500 crore each with promoter-directors Mr. Dhruv Gupta and Mr. Devansh Gupta, representing 212.35% of annual consolidated turnover. A further ₹400 crore is sought with Algoquant Financials LLP, the promoter holding 51.62% of equity, of which ₹395 crore is allocated to inter-corporate loan/deposit/corporate guarantee. The company also seeks a special resolution under Section 185 for loans and guarantees, and authorisation under Sections 179 and 186 for loans and investments up to ₹1,000 crore. The company's AOC-2 filings for FY2023-24 through FY2025-26 each assert arm's-length compliance without substantiation.
  2. Promoter brothers hold consolidated control while pledges surged to 32.4% Major - Promoter and promoter group shareholding stood at 73.68%, unchanged year-on-year, but promoter pledges rose to 32.42% from 1.49% one year earlier. Four fresh pledge events occurred between 3 September 2025 and 11 December 2025 totalling ₹41.19 crore. Mr. Dhruv Gupta was re-designated to Whole-time Director for five years from 1 June 2025 at ₹96,00,000 per annum plus bonus, having drawn nil remuneration prior. Mr. Devansh Gupta was re-appointed Managing Director for three years from 1 April 2025 at ₹6,00,000 per month, increasable to ₹10,00,000. The Company Secretary and Compliance Officer position went vacant twice, after resignations effective 31 May 2025 and 8 February 2026.
  3. Borrowing authorisations raised to ₹1,000 crore while actual borrowings remain small Major - Shareholder borrowing authorisation was raised from ₹100 crore in April 2021 to ₹1,000 crore at the 61st AGM in October 2024 and again at the 62nd AGM on 29 September 2025, while reported group borrowings stood at ₹30.83 crore as at 31 March 2026. The company's overdraft and revolving facilities are secured by assets of the holding company and related parties, including mortgage of properties owned by Algoquant Financials LLP and Devansh Real Estate Private Limited, and personal guarantees of directors, rather than the company's own assets. A ₹20 crore revolving facility is secured by property owned by Dhruv Devansh Investment & Finance LLP, a related party.
  4. An NCLT scheme and accounting choices have repeatedly reshaped reported profit Major - The Composite Scheme of Arrangement, sanctioned by NCLT Ahmedabad on 3 October 2024 with appointed date 1 April 2023, restated comparatives under pooling-of-interest method. Restatement changed FY2024 revenue from 64.17 crore to 156.28 crore and PAT from 9.95 crore to 24.82 crore. The Scheme cancelled 41,72,350 shares held by Algoquant Investments Private Limited, with the difference transferred to Capital Reserves, which are not distributable as dividends. The capital reserve balance is negative at ₹194.02 lakh as at 31 March 2025 and 31 March 2026. The company recognised unused MAT credit of ₹4.18 crore as at 31 March 2026, while in FY2021-22 it had declined to recognise deferred tax assets on ₹18.71 crore of losses and ₹10.45 crore of prior period MAT credits citing conservative recognition.
  5. Operating cash flow swung from negative to strongly positive, with no dividends paid Major - Operating cash flow was ₹-10.28 crore in FY24, then ₹60.38 crore in FY25 and ₹60.00 crore in FY26, against PAT of ₹24.58 crore, ₹31.89 crore and ₹33.40 crore respectively. No dividend was recommended for FY2025-26 or FY2024-25, and no transfer to reserves was made. The company incurred cash losses of ₹4.47 crore in FY2022-23. Promoter pledges stood at 32.4% as of the latest period, with fresh pledge events including ₹18.44 crore on 3 September 2025 and ₹11.24 crore on 17 November 2025.
  6. Group shape changed from standalone to a layered holding structure with three new subsidiaries Minor - Algoquant Fintech had no subsidiaries from FY2020-21 through FY2022-23, with Mandelia Investments Private Limited as holding company. Algoquant Financials LLP became the ultimate holding entity effective 9 February 2021. Three subsidiaries were incorporated in quick succession: Growth Global Securities (IFSC) Private Limited on 2 November 2022, AQ Capital Services Private Limited on 27 November 2024, and Algoquant Global Securities Private Limited on 13 June 2025. As of 31 March 2026, the group comprised Algoquant Financials LLP as ultimate parent, three subsidiaries, and two fellow subsidiaries.
  7. Entire ₹100 lakh investment in a subsidiary impaired after surrendering NSE IFSC memberships Minor - During the year ended 31 March 2026, management approved surrender of memberships held by wholly owned subsidiary Growth Global Securities (IFSC) Private Limited with NSE IFSC Limited, and recognised an impairment loss of ₹100.00 lakh on its investment. The impairment was recognised during the quarter/year ended 31 March 2026.

What to watch

Bottom line: This is a disclosed and audited record with real cash generation, operating cash flow has covered profit in each of the last two years. The risk sits in the gap between authorisation and actuals: related-party limits and borrowing powers that run to ₹1,000 crore against a turnover of roughly ₹235 crore, with facilities secured by promoter-group assets rather than the company's own. Watch the 3 September 2026 AGM votes, and whether the advance income-tax delays finally stop.