Atul shares slide 4% as Q1 margin contracts; check details here

Atul shares fell 4 per cent after it reported a margin contraction in the June quarter of the current financial year (Q1-FY26)

Shares of Atul Ltd. slipped over 4 per cent on Friday after the company reported a margin contraction in the June quarter of the current financial year (Q1-FY26). However, net profit and revenue rose in the first quarter. 

 

The specialty chemicals stock fell as much as 4.15 per cent to ₹6,976 per share, the steepest intraday fall since May 9 this year. The stock pared gains to losses to trade 4 per cent lower at ₹6,986 apiece, compared to a 0.58 per cent decline in Nifty 50 as of 2:12 PM. 

 

Shares of the company fell for the fourth day and currently trade at 4.1 times the average 30-day trading volume, according to Bloomberg. The counter has remained flat this year, compared to a 5.5 per cent advance in the benchmark Nifty 50. Atul has a total market capitalisation of ₹20,515.31 crore.  

 

Atul Q1 results 

Atul reported year-on-year (Y-o-Y) gains in both revenue and profit, though margins came under mild pressure. Its consolidated revenue rose 11.8 per cent to ₹1,478 crore, compared to ₹1,322.05 crore in the same period last year. Net profit increased 14 per cent Y-o-Y to ₹128 crore, up from ₹111.80 crore in Q1FY25.

 

On the operational front, Ebitda (earnings before interest, tax, depreciation and amortisation) grew 5 per cent to ₹235.50 crore from ₹223.23 crore in the corresponding quarter of the previous year. However, the Ebitda margin contracted to 15.9 per cent from 16.9 per cent a year ago, indicating some pressure on operating efficiencies. 

About Atul

Atul has one of the biggest integrated chemical complexes in India with a well-diversified product portfolio of around 900 products and 400 formulations. Geographically, its sales are almost evenly distributed between domestic and exports. 

 

The company is part of the Lalbhai Group and operates primarily in the Life Science Chemicals and Performance and Other Chemicals segments. It serves a wide range of industries, including adhesives, agriculture, animal feed, automobiles, composites, construction, cosmetics, defence, dyestuffs, electrical and electronics, foam and furnishing, flavour and fragrance and food etc. 

 

Promoted by Kasturbhai Lalbhai, the company was incorporated on September 5, 1947. It is currently engaged in the manufacture of dyes and dye intermediates, agrochemicals, aromatics such as para-anisaldehyde, epoxy resins, and pharmaceutical intermediates.