New Product Or Brand Launch
Expected: Q3 FY26MEDIUM confidence
What: New Products: 3
“Commercialised the production of three new products: Toluloxy benzyl amine hydrochloride, Dichloroprop-P and Chlorsulfuron.”
Atul Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +11.1%Strong12w Streak
In , Atul Ltd (Dyes & Pigments) is outperforming Nifty 500 with +11.1% relative strength. Fundamentals: Strong. On a 12-week streak.
Atul Ltd Key Facts
- PE Ratio
- 29.6x
- Price/Book
- 3.21x
- Market Cap
- ₹20,072 Cr
- PAT Growth YoY
- +62%
- Revenue Growth YoY
- +15%
- OPM
- 17.0%
- RS vs Nifty 500
- +11.1%
PE: Mid ContractionMax Opportunity
What's Happening
📈PE contracting while earnings accelerate — market hasn't priced in the growth
🎯Earnings accelerating with expanding margins — double tailwind
🌐FII stake decreased 1.3% this quarter
💰Trading 52% below estimated fair value — significant discount
Earnings Acceleration Triggers
1. New Product Or Brand Launch
Q3 FY26MEDIUM
2. Operating Leverage Inflection
CurrentMEDIUM
3. Regulatory Approval Or License Win
CurrentLOW
Key Risks
1. Impact of product mix on profitability
MEDIUMSector-Specific Signals
Captive Power Plant Capacity73 MW
Production Sites80
Number of Brands1400
Industries Served300
Key Numbers
PAT Growth YoY
+62%
Accelerating
Revenue YoY
+15%
Stable
Operating Margin
17.0%
+200 bps YoY
PE Ratio
29.6
PEG Ratio
0.00
EV/EBITDA
19.0
Current Price
₹6,818
Dividend Yield
0.37%
Fundamental Score
61/100
Strong
3Y PAT CAGR
+11%
Market Cap
20.9K Cr
Valuation
Significantly Undervalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Atul Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Operating Leverage Inflection
Expected: CurrentMEDIUM confidence
What: Capacity Increase: 830 TPA / 475 TPM
“Increased capacity of Multigrip Resin by about 830 TPA, and the RACL plant by about 475 TPM.”
Regulatory Approval Or License Win
Expected: CurrentLOW confidence
What: CEP Granted: Valacyclovir
“Atul Bioscience received the CEP for Valacyclovir.”
PAT growth of 40% YoY
HIGH confidence
What: PAT growth of 40% YoY
“PAT 164 182 (10%) 117 40% 478 369 30% PAT% 10% 12% (2%) 8% 2% 10% 9% 1%”
What Are the Key Risks for Atul Ltd?
Earnings deceleration risks from management commentary
Impact of product mix on profitability
MEDIUMTrigger: Profitability in Life Science Chemicals was driven by improved product mix.
Management view: Focusing on improved product mix in Pharmaceuticals and Crop Protection.
Monitor: commodity
What Is Atul Ltd's Management Saying?
Key quotes from recent conference calls
“Q2 revenue improved quarter-over-quarter, led by increased domestic sales of Liquid Epoxy Resins (LER), dyes, pigments and 2,4-D products. [Previous Revenue Growth Drivers guidance]”
“Commercialised the production of three new products: Toluloxy benzyl amine hydrochloride, Dichloroprop-P and Chlorsulfuron. [Initiative: New Product Commercialisation]”
“Executed a 13.2 MW hybrid power agreement under a group captive arrangement with M/s Torrent Urja 39 Pvt Ltd [Initiative: Hybrid Power Agreement]”
“Higher sales and an improved product mix in the Pharmaceuticals and Crop Protection sub-segments have driven better profitability [Risk (commodity): MEDIUM]”
What Did Atul Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹1,574 cr
YoY +11%QoQ +1%
Why: Revenue growth was driven by an 11% year-over-year increase compared to Q3 2024-25.
Revenue showed steady year-over-year growth but remained relatively flat on a sequential basis.
EBITDA
₹286 cr
YoY +19%Margin 18%
Why: EBITDA grew 19% year-over-year but declined 9% sequentially from Q2 FY26.
Margins compressed by 200 basis points compared to the previous quarter.
PAT
₹164 cr
YoY +40%QoQ -10%
Why: PAT increased significantly year-over-year by 40% but saw a 10% sequential decline.
The year-over-year performance remains strong despite the quarter-on-quarter dip.
Other Highlights
• 9-month PAT grew 30% to ₹478 cr
• EPS for Q3 stood at ₹55
• Life Science Chemicals PBIT margin maintained at 20%
What Sector Metrics Matter for Atul Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Captive Power Plant Capacity
73 MW
QoQ -27 MW
Production Sites
8
YoY 0QoQ 0
Why: Maintained current infrastructure.
Number of Brands
140
YoY 0QoQ 0
Why: Stable brand portfolio.
Industries Served
30
YoY 0QoQ 0
Why: Broad market presence maintained.
Number of Customers
4,000
YoY 0QoQ 0
Why: Customer base remains stable.
Products and Formulations
900 + 400
YoY 0QoQ 0
Why: Product portfolio remains consistent.
Countries Present
88
YoY 0QoQ 0
Why: Global footprint maintained.
Effluent Treatment Capacity
32 MLD
YoY 0QoQ 0
Why: Environmental infrastructure maintained.
What Is Atul Ltd's Management Guidance?
Forward-looking targets from management
Capex Plan
₹1200 Cr
Capex Plan
₹1,200 cr
Surplus funds available for future expansion
Management Tone: BULLISH
How Fast Is Atul Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +15% | +5% | Stable |
| PAT (Net Profit) | +62% | +11% | Accelerating |
| OPM | 17.0% | +200 bps | Expanding |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Other Top Dyes & Pigments Stocks Beating Nifty 500
Frequently Asked Questions: Atul Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Atul Ltd's latest quarterly results?
Atul Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: +62.3% (accelerating)
- Revenue Growth YoY: +15.0%
- Operating Margin: 17.0% (expanding)
Is Atul Ltd's profit growing or declining?
Atul Ltd's profit is growing with an accelerating trend.
- PAT Growth YoY: +62.3% (latest quarter)
- PAT Growth QoQ: +28.7% (sequential)
- 3-Year PAT CAGR: +10.8%
- Trend: Accelerating — latest quarter growth stronger than prior
What is Atul Ltd's revenue growth trend?
Atul Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +15.0%
- Revenue Growth QoQ: +6.1% (sequential)
- 3-Year Revenue CAGR: +5.0%
How is Atul Ltd's operating margin trending?
Atul Ltd's operating margin is expanding.
- Current OPM: 17.0%
- OPM Change YoY: +2.0% basis points
- OPM Change QoQ: +1.0% basis points
What is Atul Ltd's 3-year profit and revenue CAGR?
Atul Ltd's long-term compounding rates
- 3-Year Profit CAGR: +10.8%
- 3-Year Revenue CAGR: +5.0%
Is Atul Ltd's growth accelerating or decelerating?
Atul Ltd's earnings growth is accelerating with mixed signals on a sequential basis.
- YoY Acceleration: +22.1% bps
- Sequential Acceleration: +38.6% bps
What is Atul Ltd's trailing twelve month (TTM) performance?
Atul Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹689 Cr
- TTM PAT Growth: +38.1% YoY
- TTM Revenue: ₹6,000 Cr
- TTM Revenue Growth: +12.4% YoY
- TTM Operating Margin: 16.5%
Is Atul Ltd overvalued or undervalued?
Atul Ltd appears significantly undervalued based on our fair value analysis.
- Valuation Signal: Significantly Undervalued
- Current PE: 29.6x
- Price-to-Book: 3.2x
What is Atul Ltd's current PE ratio?
Atul Ltd's current PE ratio is 29.6x.
- Current PE: 29.6x
- Market Cap: 20.1K Cr
- Dividend Yield: 0.37%
How does Atul Ltd's valuation compare to its history?
Atul Ltd's current PE is 29.6x.
- Current PE: 29.6x
- Valuation Assessment: Significantly Undervalued
What is Atul Ltd's price-to-book ratio?
Atul Ltd's price-to-book ratio is 3.2x.
- Price-to-Book (P/B): 3.2x
- Book Value per Share: ₹2113
- Current Price: ₹6818
Is Atul Ltd a fundamentally strong company?
Atul Ltd is rated Strong with a fundamental score of 60.61/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +15.0% (10% weight)
- PAT Growth YoY: +62.3% (10% weight)
- PAT Growth QoQ: +28.7% (10% weight)
- Earnings accelerating (5% weight)
- Margins expanding (10% weight)
- PEG Ratio: 0.0x vs sector median (15% weight)
- EV/EBITDA: 19.0x vs sector median (15% weight)
Is Atul Ltd debt free?
Atul Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹183 Cr
What is Atul Ltd's return on equity (ROE) and ROCE?
Atul Ltd's return ratios over recent years
- FY2024: ROCE 9.0%
- FY2025: ROCE 13.0%
- FY2026: ROCE 15.0%
Is Atul Ltd's cash flow positive?
Atul Ltd's operating cash flow is positive (FY2026).
- Cash from Operations (CFO): ₹1,000 Cr
- Free Cash Flow (FCF): ₹128 Cr
- CFO/PAT Ratio: 148% (strong cash conversion)
What is Atul Ltd's dividend yield?
Atul Ltd's current dividend yield is 0.37%.
- Dividend Yield: 0.37%
- Current Price: ₹6818
Who holds Atul Ltd shares — promoters, FII, DII?
Atul Ltd's shareholding pattern (Mar 2026)
- Promoters: 45.2%
- FII (Foreign): 7.5%
- DII (Domestic): 25.9%
- Public: 21.4%
Is promoter holding increasing or decreasing in Atul Ltd?
Atul Ltd's promoter holding has remained stable recently.
- Current Promoter Holding: 45.2% (Mar 2026)
- Previous Quarter: 45.2% (Dec 2025)
- Change: 0.00% (stable)
How long has Atul Ltd been outperforming Nifty 500?
Atul Ltd has been outperforming Nifty 500 for 12 consecutive weeks, indicating strong sustained outperformance.
Is Atul Ltd a new momentum entry or an established outperformer?
Atul Ltd is an established outperformer with 12 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Atul Ltd?
Atul Ltd has 4 key growth catalysts identified from recent earnings analysis
- New Product Or Brand Launch — Commercialisation of Toluloxy benzyl amine hydrochloride, Dichloroprop-P and Chlorsulfuron.
- Operating Leverage Inflection — Increased capacity of Multigrip Resin and RACL plant.
- Regulatory Approval Or License Win — Atul Bioscience received the CEP for Valacyclovir.
- PAT growth of 40% YoY — Driven by improved performance in Life Science Chemicals and Performance and Other Chemicals segments.
What are the key risks in Atul Ltd?
Atul Ltd has 1 key risk worth monitoring
- [MEDIUM] Impact of product mix on profitability — Profitability in Life Science Chemicals was driven by improved product mix.
What did Atul Ltd's management say in the latest earnings call?
In Q3 FY26, Atul Ltd's management highlighted
- "Q2 revenue improved quarter-over-quarter, led by increased domestic sales of Liquid Epoxy Resins (LER), dyes, pigments and 2,4-D products. [Previous ..."
- "Commercialised the production of three new products: Toluloxy benzyl amine hydrochloride, Dichloroprop-P and Chlorsulfuron. [Initiative: New Product ..."
- "Executed a 13.2 MW hybrid power agreement under a group captive arrangement with M/s Torrent Urja 39 Pvt Ltd [Initiative: Hybrid Power Agreement]"
What is Atul Ltd's management guidance for growth?
Atul Ltd's management has provided the following forward guidance
- Revenue outlook: Not Given
- Margin outlook: Not Given
- Capex plan: ₹1200 Cr for Surplus funds available for future expansion
- Management tone: bullish
What sector-specific metrics matter most for Atul Ltd?
Atul Ltd's most important sub-sector-specific KPIs from the latest concall
- Captive Power Plant Capacity: 73 MW (QoQ -27 MW)
- Production Sites: 8 (YoY 0) (QoQ 0) — Maintained current infrastructure.
- Number of Brands: 140 (YoY 0) (QoQ 0) — Stable brand portfolio.
- Industries Served: 30 (YoY 0) (QoQ 0) — Broad market presence maintained.
- Number of Customers: 4,000 (YoY 0) (QoQ 0) — Customer base remains stable.
- Products and Formulations: 900 + 400 (YoY 0) (QoQ 0) — Product portfolio remains consistent.
Is Atul Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Atul Ltd may be worth studying
- Earnings growth is accelerating — PAT YoY +62.3%
- Operating margins are expanding — OPM at 17.0%
- Valuation: appears significantly undervalued
- Cash flow is positive — CFO ₹1,000 Cr
What is the investment thesis for Atul Ltd?
Atul Ltd investment thesis summary:
Research Signals (Bull Case)
- Earnings accelerating — strongest growth trend
- Revenue growing at +15.0% YoY
- Margins expanding
- Appears significantly undervalued
- Growth catalyst: New Product Or Brand Launch
Risk Factors (Bear Case)
- Key risk: Impact of product mix on profitability
What is the future outlook for Atul Ltd?
Atul Ltd's forward outlook based on current data signals
- Earnings Trend: accelerating
- Revenue Trend: stable
- Margin Trend: expanding
- Valuation: Significantly Undervalued
- Key Catalyst: New Product Or Brand Launch
- Key Risk: Impact of product mix on profitability
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.