ATUL
Large CapAtul Limited
Industrials
Atul Limited is an integrated chemical company with robust in-house infrastructure and a comprehensive product portfolio. It serves 32 diverse industrial sectors across 88 countries, operating 8 production sites and offering 900+400 products and formulations under 142 brands.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 100/100Rev +15% YoY · PAT +62% YoY · margin expansion · +6% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,670 Cr | +15.0% | +6.1% |
| EBITDA | ₹281 Cr | +26.0% | +13.8% |
| Operating margin | 17.0% | +200 bps | +100 bps |
| PAT | ₹211 Cr | +62.3% | +28.7% |
| PAT margin | 12.6% | +368 bps | +221 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Atul Limited reported a strong FY26 with revenue up 12% to ₹6,274 cr, driven by 10% volume growth. PBT surged 30% to ₹901 cr and PAT increased 38% to ₹689 cr, while EBITDA margin expanded 200 bps to 20%.
FY26 results show robust financial improvement, largely volume-driven, with healthy margin expansion. However, the substantial unrealized sales potential from past capex and existing capacity (₹1,700 cr) requires close monitoring for execution. Declining sales in some JVs and the rapidly growing trade deficit with China present areas of concern.
Net Revenue by Segment (2025-26)
Latest issuer-disclosed distribution across 2 reported categories.
Volume-led Growth
Revenue growth of 12% was predominantly from improved volumes by ~10%, with ~8% from recently completed projects.
Digitalisation Initiatives
Stabilised ERP across group entities, automated real-time MIS, implemented 'golden batch' analysis in one plant, and energy management in two plants.
New Product Development
Launched 11 new products in sulphur colors liquid range, secured registrations for three in-house developed products, and launched four new products in Crop Protection – Retail.
Capacity Utilisation & Debottlenecking
Increased capacity utilisation in Atul Products Ltd and Amal Ltd, debottlenecked production capacity by 20% in Rudolf Atul Chemicals Ltd.
Unrealised Sales Potential from Projects
₹ 600 cr sales yet to realise from new projects and ₹ 1,100 cr from existing capacity.
DPD Ltd Phase-2 Expansion
Phase-2 expansion project in DPD Ltd, UK, was inaugurated on June 20, 2025.
Polymers - LER Plant Utilisation
Management aims to step up utilisation of the 50 KT LER plant.
Crop Protection - Debottlenecking
Management plans to debottleneck capacities in two key products in Crop Protection – Bulk Actives.
Domestic Market Growth
Revenue in India grew by 14% (12% volume and 2% price) in 2025-26.
Indian Chemical Industry Growth
India ranked 6th in global production and 3rd in consumption in 2024, with a 7.5% CAGR in consumption (2019-2024).
Strong Liquidity Position
Treasury funds (net of borrowings) increased to ₹ 1,578 cr in 2025-26, providing liquidity for ongoing and future growth opportunities.
Growing Trade Deficit with China
The trade deficit with China in Chapter 29 chemicals is growing very rapidly, reaching (10.4) US$ b in 2025-26*.
Declining JV Sales
Rudolf Atul Chemicals Ltd (50:50 JV) saw sales value decline by 2% and volume by 1% in 2025-26. Anaven LLP (50:50 JV) saw sales value decline by 4% and volume by 2%.
Execution of Unrealised Sales Potential
₹ 1,700 cr of sales are yet to be realised from new projects and existing capacity, requiring effective execution to convert into revenue.
Global Chemical Production Volatility
Global chemical production growth rates vary significantly by region, with some major economies showing negative growth forecasts for 2025.
Raw Material Price Volatility
Cumulative price rise in India's chemical industry was 17.2% from 2014-2024, indicating potential for input cost fluctuations.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The document provides annual financial statements and discusses performance trends on a year-over-year basis, making YoY the most appropriate comparison for assessing overall growth and profitability.
Revenue Growth
Revenue from operations grew 12% to ₹6,274 cr in 2025-26.
Volume Growth Contribution
Revenue growth predominantly from improved volumes by ~10%, with ~8% from recently completed projects.
EBITDA Margin
EBITDA margin expanded to 20% in 2025-26 from 18% in 2024-25.
Return on Capital Employed (RoCE)
RoCE improved to 17% in 2025-26 from 15% in 2024-25.
Focus on R&D and Technology
Management mandates achieving excellence in R&D, technology, and manufacturing, and pervading technology (AI) across all functions.
Cash Conservation and Free Cashflow
A key mandate is to conserve cash and measure performance by free cashflow.
Strategic Growth Avenues
Management aims for B2B and B2C growth through existing, related, and new products/businesses, and is open to joint ventures or acquisitions.
Government Collaboration on Trade Barriers
Management intends to work with the government on tariff and non-tariff barrier initiatives to address trade deficit concerns.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Unrealised Sales Potential Conversion | ₹ 1,700 cr from new projects and existing capacity. | Progress in converting this potential into actual revenue and specific timelines for realisation. |
| Segmental EBIT Growth | Life Science Chemicals EBIT grew 20%, Performance and Other Chemicals EBIT grew 21%. | Sustained double-digit EBIT growth across both segments, particularly in P&OC where EBIT % is lower. |
| Trade Deficit with China | (10.4) US$ b in Chapter 29 chemicals for 2025-26*. | Any signs of reduction in the trade deficit or impact of government initiatives on tariff and non-tariff barriers. |
| JV Performance | Rudolf Atul Chemicals Ltd and Anaven LLP showed declining sales value and volume in 2025-26. | Reversal of negative sales trends and improved profitability from joint ventures. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
56NeutralSMA20 +10.0% / mo
Technical chart
ATULweekly · 6M+12.2%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 52.
- RSI(14) at 52 — sideways, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 7% off 52W high · 20% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Balance sheet contributes 11/15 to the score.
- Cash flow contributes 6/10 to the score.
Main drags
- Fair-value margin of safety is negative at -232.8%.
- Valuation is weaker at 4/30; verify the latest quarterly trend.
- Quality is weaker at 4/20; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 95th percentile of the scored universe and 95th percentile within Industrials. No major sub-score weakness stands out.
High Trust Lite: Promoter pledge is zero.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Industrials: 95th pctile, median 68 · Large: 84th pctile, median 74
14 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 0.7%.
- ▸10 years of positive FCF.
- ▸Debt/equity is 0.03.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 28.70
- P/B
- 3.12
- EV/EBITDA
- 14.49
- Market Cap
- 19428.00Cr
Profitability
- ROE
- 11.50%
- ROCE
- 14.90%
- ROA
- 8.72%
- Dividend Y
- 0.46%
Growth (CAGR)
- Revenue 5Y
- 11.00%
- EPS 5Y
- 1.00%
- Revenue 3Y
- 5.00%
- EPS 3Y
- 9.00%
Balance Sheet
- Debt/Equity
- 0.03
- Interest Coverage
- 60.65×
- Altman Z
- 8.61
- Book Value
- 2113.00
Cash Flow
- FCF Yield
- 0.66%
- FCF Positive Y
- 10/5
- OCF
- 1023.00 Cr
- EPS TTM
- 230.25
Shareholding
- Promoter Hold
- 45.22%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 46%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.