Atul Auto Q1 FY27 Results (NSE: ATULAUTO)
Signal: Growth reaccelerated
The read
The operating trajectory strengthened materially: consolidated revenue rose 42.97% YoY on 42.56% volume growth and automobiles segment result rose 925.58% to 882 lakh, but gross margin fell approximately 230bps as materials reached 75.3% of revenue; the Ahmedabad-only manufacturing strategy is the key potential margin catalyst, while the current quarter does not yet demonstrate input-cost control.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹218.43 Cr | +42.97% | -9.17% |
| Net profit | ₹8.04 Cr | +290.29% | |
| EPS | ₹2.86 | +169.81% | |
| EBIT margin | N/A |
P&L walk
Revenue rose to 21,843 lakh, up 42.97% YoY but down 9.17% QoQ, led by 42.56% volume growth; gross margin compressed to approximately 28.8% from 31.0% as material costs increased to 75.3% of revenue from 69.3%, while PBT rose 231.38% to 1,077 lakh and PAT rose 290.29% to 804 lakh.
Segments
The automobiles business drove the inflection, with segment result rising to 882 lakh from 86 lakh YoY, while the NBFC business remained profitable at 195 lakh but declined 18.41% YoY; consolidation lifted PAT to 804 lakh versus standalone PAT of 674 lakh.
Key positives
- Consolidated revenue reached 21,843 lakh, up 42.97% YoY, closely supported by three-wheeler volume growth of 42.56% to 9,878 units.
- Automobiles segment result increased 925.58% YoY to 882 lakh from 86 lakh, driving the consolidated PBT increase from 325 lakh to 1,077 lakh.
- Employee costs rose 16.78% YoY to 2,282 lakh, and depreciation rose only 2.64% to 467 lakh, both substantially slower than revenue growth.
- Management plans to consolidate manufacturing at the Ahmedabad facility, which has approximately 60,000 vehicles per annum capacity and is expected to reduce fixed overheads and operating costs.
- The Rajkot land and building lease is intended to create steady recurring cash flow from an underutilized manufacturing asset.
Key concerns
- Gross margin compressed approximately 230bps YoY to 28.8% as net material cost increased to 75.3% of revenue from approximately 69.0%, indicating cost absorption despite strong volume growth.
- Consolidated finance costs rose 89.58% QoQ to 273 lakh, while the NBFC segment result declined 18.41% YoY to 195 lakh.
- Consolidated revenue declined 9.17% QoQ and PAT declined 56.11% QoQ from the Q4FY26 base, requiring monitoring of post-Q4 seasonality and demand momentum.
- EPS growth of 169.81% lagged PAT growth of 290.29%, reflecting the impact of non-controlling interest on attributable earnings.
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