Atul Auto Limited (ATULAUTO) Q2 FY27 Financial Results: PAT ₹804 Cr & Revenue ₹21,843 Cr

Investor Takeaways

Overall Tone: Positive

Key Financial Highlights

*Note: EPS is not provided in the data. However, PAT of ₹8.04 Cr for the quarter implies EPS based on shares outstanding not disclosed. Therefore, EPS is marked as "Not available" per rules.

What Changed

Atul Auto Limited demonstrated robust financial performance in the latest filing, with consolidated revenue increasing 43% YoY to ₹218.43 Cr and profit after tax jumping 290% to ₹8.04 Cr. This growth was underpinned by a 42.5% YoY rise in three-wheeler sales to 9,878 units during Q1 FY2026-27, signaling strong demand and execution in the core agricultural and commercial vehicle segment. The standalone business also showed improvement, with revenue rising to ₹206.93 Cr (+44.7% YoY) and profit before tax increasing 34.2% to ₹9.02 Cr. The quarterly trend reveals a consistent upward trajectory over the past four quarters, with revenue and profit before tax expanding steadily from ₹135.08 Cr and ₹0.76 Cr in Q1FY25 to ₹194.99 Cr and ₹7.12 Cr in Q3FY25, before accelerating in the latest period. Operating profit margins improved from 5.59% in Q1FY25 to 8.54% in Q3FY25, indicating better cost control and pricing power. The company’s ability to scale operations while maintaining margin expansion across standalone and consolidated metrics reflects improving operational leverage. With revenue growth outpacing profit growth in earlier quarters and now reversing into strong PAT expansion, the company is transitioning into a more profitable growth phase. The positive sentiment is supported by both volume-driven growth and margin improvement, suggesting sustainable momentum in the near term.

Peer Comparison

Atul Auto is trading at a higher P/E multiple compared to Cummins India (74.38) and significantly higher than HAL (33.73), suggesting market expectations of higher future growth. However, its P/E is lower than BEL (62.03) only in relative terms, but still reflects premium valuation. The company’s market capitalization is modest compared to large-cap peers, placing it in the small-cap category. While peer ROE and ROCE are not available, the company’s PAT growth of 290% stands out as exceptional relative to peers, many of whom operate in more mature or cyclical segments with slower growth. This suggests Atul Auto may be valued for its growth trajectory in the agricultural vehicle space, where demand is tied to rural income and government support.

Risks & Concerns

No specific risks identified in this filing.

Quarterly Trend

The quarterly trend shows a consistent upward trajectory in revenue and profitability over the last four quarters. Revenue grew from ₹135.08 Cr in Q1FY25 to ₹194.99 Cr in Q3FY25, while profit before tax increased from ₹0.76 Cr to ₹7.12 Cr, reflecting strong operational scaling. Operating profit margins improved from 5.59% in Q1FY25 to 8.54% in Q3FY25, indicating effective cost management and pricing discipline. The latest consolidated figures of ₹218.43 Cr revenue and ₹8.04 Cr PAT suggest this upward trend continued into the current fiscal year, with acceleration in growth momentum. The company has demonstrated consistent improvement in both top-line expansion and margin performance, supporting the positive outlook.

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About Atul Auto Limited (ATULAUTO)

Automobile and Auto Components · Automobile · Listed on NSE

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