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.
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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.
Also Read: Sapphire Foods Share Price Jumps 6% As KFC India Operator Swings To Profit: Should You Buy?
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