Shares of Atul Ltd. jumped over 4% as the market opened on Monday, extending gains for the second consecutive session after the chemicals company reported a sharp improvement in its June-quarter performance. The rally followed strong growth across profit, revenue and operating margins in the first quarter of FY27.
The stock had already gained more than 4% on Friday following the earnings announcement and closed at Rs 6,407.5 and is currently trading at Rs 6,735 apiece on the NSE, gaining close to 332 points around 10 am today.
Investors are tracking the significant improvement in profitability, with operating earnings growing considerably faster than revenue during the quarter and a change in management.
Q1 Profit Nearly Doubles
Atul's consolidated net profit surged 91.9% year-on-year to Rs 245 crore in the quarter ended June 30, compared with Rs 128 crore in the corresponding period last year.
Revenue from operations rose 25% to Rs 1,848 crore from Rs 1,478 crore in the year-ago quarter.
The improvement was sharper at the operating level. Earnings before interest, taxes, depreciation, and amortization (Ebitda) jumped 66.9% year-on-year to Rs 393 crore, compared with Rs 236 crore a year earlier.
Ebitda margin expanded substantially to 21.3% from 15.9% in the corresponding quarter, marking an improvement of about 540 basis points. The margin expansion, coupled with higher revenue, supported the near-doubling of the company's bottom line.
Also Read: Atul Q1 Results: Net Profit Jumps 92%, Revenue Rises 25% To Rs 1,848 Crore.
Share Price Performance
Over a week, the stock has gained 9.4%; however, it remained muted over the past month.
In 2026, the stock rose around 8%, including the recent rally.
The stock traded between Rs 5,560 and Rs 7,180 a piece during the past 52 weeks, and currently has a market cap of Rs 19,708.3 crore as at the end of Friday's session.
The stock is trading at a price-to-earnings multiple of 213.4 times.
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