Atul Auto Q2 result: Profit falls 27% despite 34% revenue growth

What happened

Atul Auto reported a 34% year-on-year rise in revenue to ₹268 crore for Q2 FY27, up from ₹200 crore. However, net profit fell 27% to ₹6.7 crore from ₹9.2 crore a year earlier.

Confirmed

Global impact / market context

Rising revenue with falling profit means Atul Auto is keeping less profit per sale, as EBITDA margin dropped to 5.2% from 9.2%. That pressures internally generated cash and may limit how much the three-wheeler maker can fund capital spending without borrowing.

Analyst inference

The shares ended 2.07% lower at ₹411 on the NSE on October 30, showing investors reacted to weaker quarterly profit despite higher sales. Volume growth, including 11,916 three-wheelers sold in the quarter, did not offset the cost pressure implied by thinner margins.

Analyst inference

What to watch

1. Atul Auto attributed its first-half performance to higher three-wheeler sales volumes and contributions from its automobile and financial services businesses, with H1 profit after tax up about 44%. Confirmed
2. Watch whether the company can restore profit per sale, since EBITDA margin of 5.2% in Q2 was well below the 9.2% reported a year earlier. Analyst inference
3. Track whether input costs, which are not itemised in the article, keep compressing profitability even as three-wheeler sales volumes continue to grow. Analyst inference

Evidence

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