In Week of Mar 28, 2026, Atul Ltd (Dyes & Pigments) is outperforming Nifty 500 with +14.8% relative strength. Fundamentals: Average. On a 8-week streak.
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
Based on Q3 FY26 (December 2025) earnings • Updated Feb 22, 2026
What: ₹54.76 cr capex in 9M FY26 completed with full ramp-up expected in FY27
Impact: +₹200 Cr revenue
“The company's fixed assets increased to ₹2,822.72 crores in FY25 from ₹2,767.96 crores in FY24, indicating ongoing capital expenditure to expand production capacity.”
What: Sustainable lower tax rate of 19.63% vs 27.90% in FY25
“The tax rate for the quarter stood at 19.63%, notably lower than the previous quarter's 21.15% and the full-year FY25 rate of 27.90%”
Earnings deceleration risks from management commentary
Trigger: Continued employee cost inflation
Impact: -200 bps margin impact
Management view: Employee costs surged significantly to ₹166.73 crores in Q3 FY26 from ₹121.12 crores in Q2 FY26, representing a 37.65% sequential increase.
Monitor: Employee cost to revenue ratio
Trigger: Continued decline in other income
Impact: -50 bps margin impact
Management view: Other income declined sharply to ₹38.59 crores in Q3 FY26 from ₹48.50 crores in Q2 FY26, reducing its contribution to overall profitability.
Monitor: Other income to PAT ratio
Key quotes from recent conference calls
“The company's fixed assets increased to ₹2,822.72 crores in FY25 from ₹2,767.96 crores in FY24, indicating ongoing capital expenditure to expand production capacity. — Management Commentary”
“Operating profit (PBDIT excluding other income) reached ₹247.06 crores in Q3 FY26, but the corresponding margin of 15.70% represents a sequential contraction of 154 basis points from Q2 FY26's 17.24%. — Management Commentary”
“This represents the company's strongest quarterly sales performance on record, indicating sustained demand across its life science chemicals and performance chemicals segments. — Management Commentary”
“The financial trend assessment remains 'Positive' based on Q3 FY26 results, driven by record quarterly sales of ₹1,573.62 crores, half-yearly profit growth of 38.46%, and the highest half-yearly ROCE of 12.64%. — Management Commentary”
Forward-looking targets from management for Next 2-4 quarters
Key Milestones
• Capacity expansion ramp-up
• Margin stabilization
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +11% | +3% | Decelerating |
| PAT (Net Profit) | +40% | -6% | Stable |
| OPM | 16.0% | 0 bps | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Feb 22, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Atul Ltd's latest quarterly results (Dec 2025) show
Atul Ltd's profit is growing with an stable trend.
Atul Ltd's revenue growth trend is decelerating.
Atul Ltd's operating margin is stable.
Atul Ltd's long-term compounding rates
Atul Ltd's earnings growth is stable with mixed signals on a sequential basis.
Atul Ltd's trailing twelve month (TTM) performance
Atul Ltd appears significantly overvalued based on our fair value analysis.
Atul Ltd's current PE ratio is 30.9x.
Atul Ltd's current PE is 30.9x.
Atul Ltd's price-to-book ratio is 3.1x.
Atul Ltd is rated Average with a fundamental score of 43.52/100. This score is calculated from objective financial metrics
Atul Ltd has a debt-to-equity ratio of N/A.
Atul Ltd's return ratios over recent years
Atul Ltd's operating cash flow is positive (FY2025).
Atul Ltd's current dividend yield is 0.40%.
Atul Ltd's shareholding pattern (Dec 2025)
Atul Ltd's promoter holding has increased recently.
Atul Ltd has been outperforming Nifty 500 for 8 consecutive weeks, indicating consistent outperformance.
Atul Ltd is an established outperformer with 8 weeks of consecutive Nifty 500 outperformance.
Atul Ltd has 2 key growth catalysts identified from recent earnings analysis
Atul Ltd has 2 key risks worth monitoring
In Q3 FY26 (December 2025), Atul Ltd's management highlighted
Atul Ltd's management has provided the following forward guidance for Next 2-4 quarters
Based on quantitative research signals, here is why Atul Ltd may be worth studying
Atul Ltd investment thesis summary:
Atul Ltd's forward outlook based on current data signals
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.
