Atul Auto Q2 Consolidated Revenue Jumps 34%, Profit Slips 17% as Costs Climb

Atul Auto, the Rajkot-based three-wheeler maker, reported a 34% year-on-year rise in consolidated revenue for the July-September quarter. Profit fell, as costs rose faster than sales.

Consolidated Q2 FY27

Consolidated revenue from operations was ₹268.3 crore, up from ₹200.2 crore a year earlier and 22.8% above the June quarter's ₹218.4 crore. Total income, including other income of ₹1.9 crore, was ₹270.2 crore.

Profit before tax fell 22.5% to ₹9.0 crore from ₹11.6 crore. Net profit was ₹6.8 crore, down 17.3% from ₹8.3 crore a year ago and about 15% below the first quarter's ₹8.0 crore. Profit attributable to owners of the company was ₹6.7 crore against ₹9.2 crore. Basic and diluted earnings per share (face value ₹5) were ₹2.41, against ₹3.30 a year earlier and ₹2.86 in Q1.

Costs explain the squeeze. Materials consumed rose to about 78% of revenue from about 75.5% a year ago. Employee costs rose about 19% to ₹24.5 crore, and other expenses rose about 37% to ₹18.3 crore. Finance costs fell to ₹2.05 crore from ₹2.64 crore, a partial offset.

Consolidated first half

For April-September, consolidated revenue rose 37.9% to ₹486.7 crore from ₹353.0 crore. Profit before tax grew 33% to ₹19.8 crore, and net profit rose 44% to ₹14.9 crore from ₹10.3 crore. Profit attributable to owners was ₹14.6 crore, up about 21% from ₹12.1 crore. Half-year EPS was ₹5.27 against ₹4.37.

The filing does not show profit growth for the half in isolation from the weak comparative base: the first half of last year included a loss share of ₹1.8 crore for non-controlling interests, which has since turned to a small profit.

Volumes and segments

The company sold 11,916 three-wheelers in the quarter, up about 29% from 9,248 a year ago and 21% from 9,878 in Q1. First-half volumes were 21,794 units, up about 35% from 16,177. Full-year FY26 sales were 38,449 units.

The automobile business drove the growth. Its gross segment revenue rose 37.5% to ₹257.9 crore, though its pre-tax profit slipped 6% to ₹9.2 crore from ₹9.8 crore. The non-banking finance (NBFC) segment's revenue fell 14% to ₹12.3 crore, and it posted a pre-tax loss of ₹0.24 crore, against a profit of ₹1.76 crore a year ago and ₹1.95 crore in Q1. For the half, the NBFC segment earned ₹1.7 crore, against ₹4.2 crore last year.

Balance sheet and cash flow

Consolidated total assets were ₹799.8 crore at September 30, against ₹768.8 crore at March 31. Equity stood at ₹496.3 crore. Total borrowings fell to about ₹108.8 crore from about ₹144.4 crore at March-end, with ₹35.6 crore repaid in the half.

Inventories rose to ₹132.5 crore from ₹91.8 crore, reflecting stock build-up. Net operating cash flow was ₹31.7 crore, against an outflow of ₹19.1 crore a year earlier, helped by a sharp rise in payables and other liabilities. The company paid ₹8.3 crore in dividends. Cash and equivalents ended at ₹22.6 crore.

Standalone results

On a standalone basis, revenue from operations rose 37.4% to ₹259.4 crore from ₹188.8 crore, but profit before tax fell 43% to ₹9.2 crore from ₹16.1 crore, and net profit fell 44% to ₹6.9 crore from ₹12.2 crore. EPS was ₹2.48 against ₹4.39. Materials cost rose to about 83% of revenue from about 78.5%, and other expenses rose to ₹18.5 crore from ₹13.9 crore. Other income was ₹2.9 crore, including ₹1.3 crore in interest income and ₹0.8 crore in subvention income.

For the half year, standalone revenue rose 40.5% to ₹466.4 crore, while profit before tax fell 20% to ₹18.2 crore and net profit fell 21% to ₹13.6 crore. EPS was ₹4.90 against ₹6.21.

The standalone balance sheet remains debt-free, with total assets of ₹632.7 crore and equity of ₹475.8 crore. Standalone cash fell to ₹2.0 crore from ₹19.5 crore at March-end. The company invested ₹18.3 crore in a subsidiary, spent ₹10.6 crore on capital expenditure and paid the ₹8.3 crore dividend.