Dolat Algotech Limited has published a newspaper advertisement on April 2, 2026, confirming the postal ballot notice for seeking shareholder approval for material related party transactions (RPTs) worth Rs. 30,021.05 crores for the financial year 2026-27. The company issued the postal ballot notice dated March 27, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

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The company has fulfilled its regulatory obligation by publishing the postal ballot advertisement in Financial Express on April 2, 2026, covering both English (All editions) and Gujarati (Ahmedabad/Gandhinagar edition) newspapers. The advertisement was signed by Sandeepkumar G. Bhanushali, Company Secretary & Compliance Officer, and communicated to both BSE Limited and National Stock Exchange of India Limited.

Proposed Related Party Transactions

The postal ballot covers two ordinary resolutions seeking approval for material related party transactions involving the company and its subsidiary.

Company-Level Transactions

The first resolution seeks approval for transactions between Dolat Algotech Limited and eight promoter group companies:

The eight related parties include Jigar Commodities & Derivatives Private Limited, L C Raheja Forex Private Limited, Nirpan Securities Private Limited, Nirshilp Commodities and Trading Private Limited, Shailesh Shah Securities Private Limited, Purvag Commodities & Derivatives Private Limited, and Vaibhav Stock & Derivatives Broking Private Limited.

Subsidiary Transactions

The second resolution covers transactions between the company's subsidiary, Dolat Tradecorp, and Nirpan Securities Private Limited for an aggregate value not exceeding Rs. 500 crores during FY 2026-27.

E-Voting Schedule and Process

The company has engaged National Securities Depository Limited (NSDL) to facilitate remote e-voting for shareholders. The postal ballot notice was dispatched electronically on April 1, 2026, to eligible shareholders.

Transaction Rationale and Regulatory Compliance

The proposed transactions represent significant percentages of the company's annual consolidated turnover, with values reaching 5665.45% for the primary related party. The loan facilities are designed to efficiently manage working capital and meet margin requirements with stock exchanges, offering cost-effective funding with mutually agreed interest rates expected to be lower than comparable bank borrowings.

The transactions require shareholder approval as they exceed the materiality thresholds specified under Schedule XII of the SEBI Listing Regulations. The Audit Committee has reviewed and approved these transactions, confirming they are conducted at arm's length and in the ordinary course of business. Results will be announced within two working days of the e-voting conclusion, with May 2, 2026, being the deemed date of resolution passage if approved by requisite majority.

Dolat Algotech Limited has received a rating reaffirmation from CRISIL Ratings, which maintained its 'CRISIL A1+' rating on the company's Rs 350 crore commercial paper program. The rating reflects the group's established position in capital markets business, supported by robust risk management frameworks and adequate financial strength.

Rating Rationale and Key Strengths

CRISIL's rating decision is anchored on several fundamental strengths of the Dolat group. The company has built an established track record in capital markets over more than four decades, with strong risk management systems providing a competitive edge. The group's proprietary algorithmic trading software, developed by experienced professionals, offers advantages through low system latency and minimal human intervention.

The rating agency highlighted the group's adequate capitalisation, with consolidated networth growing consistently through internal accruals. The management maintains a conservative approach with low gearing levels and sufficient liquidity buffers.

Operational Performance and Challenges

The group's financial performance shows mixed trends across recent periods. For fiscal 2025, the group reported profit after tax of Rs 405 crore with return on equity of 15.0%, compared to Rs 386 crore and 16.3% respectively in fiscal 2024.

However, for the six months ended September 30, 2025, PAT moderated to Rs 127 crore compared to Rs 241 crore in the corresponding period of the previous fiscal, primarily due to regulatory changes and market volatility.

Regulatory Environment and Risk Factors

CRISIL identified several key challenges facing the group. The company's high reliance on proprietary trading as a single revenue stream creates vulnerability to regulatory changes and market volatility. Recent regulatory modifications include higher securities transaction tax effective February 1, 2026, and new RBI guidelines requiring 100% collateral for bank guarantees in proprietary trading from April 1, 2026, up from the previous 50% requirement.

The rating agency noted that these changes may impact the group's earnings profile and require exploration of alternative funding sources. Additionally, SEBI has introduced various measures affecting derivatives trading, including increased contract sizes, upfront premium collections, and additional margin requirements.

Business Model and Risk Management

Dolat Algotech operates through sophisticated algorithmic trading systems with automated risk management protocols. The group executes risk-neutral, delta-hedged strategies with real-time monitoring systems to minimize human intervention and errors. The management team, led by promoters with over three decades of capital market experience, maintains conservative trading parameters and adequate liquidity buffers.

The company's standalone performance shows networth of Rs 1,085 crore as on December 31, 2025, with the group maintaining minimum liquidity policy of Rs 250 crore for operational requirements.