Atul Auto Limited reported a sharp acceleration in profitability for the quarter ended June 30, 2026, with consolidated net profit surging 290.29% year-on-year to ₹8.04 crore from ₹2.06 crore. The three-wheeler manufacturer posted this gain on the back of robust demand, selling 9,878 units compared to 6,929 units in the same quarter last year, representing a 42.56% volume growth. This operational strength translated into a 42.97% rise in consolidated revenue from operations to ₹218.43 crore, while standalone revenue climbed 44.67% to ₹206.93 crore.

The Board of Directors approved the unaudited financial results on August 08, 2026, pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, M/s. Maharishi & Co., who issued their report under Standard on Review Engagement (SRE) 2410. The filing also disclosed significant strategic moves, including the closure of manufacturing operations at its Rajkot facility and the re-appointment of key board members.

Financial Performance Highlights

The company's financial results reflect improved operational efficiency across both standalone and consolidated structures. While standalone profit before tax increased 34.23% to ₹9.02 crore, the consolidated segment saw a more dramatic improvement, with profit before tax jumping 231.38% to ₹10.77 crore. Basic and diluted earnings per share (EPS) rose to ₹2.86 at the consolidated level, up from ₹1.06 in the previous year. On the operating front, EBITDA improved to 169M Rupees from 100M Rupees year-on-year, with the EBITDA margin expanding to 7.72% from 6.55% in the same period last year, reflecting stronger cost management and operating leverage.

The following table summarises the key financial and operational metrics for the quarter:

Updated EBITDA metrics for the quarter are as follows:

Strategic Operational Shifts

In a move to optimize costs, the Board approved the closure of existing manufacturing operations for three-wheelers and spares located at Shapar (Veraval), Rajkot. The company will consolidate all vehicle assembling activities at its modern Bhayla facility in Ahmedabad, which has an installed capacity of approximately 60,000 vehicles per annum. Management stated that the Ahmedabad facility offers superior logistical advantages and can meet anticipated demand with minimum capital expenditure.

The Rajkot facility, comprising approximately 13 acres of land and buildings with a written-down value of ₹6.01 crore as of March 31, 2026, is slated for closure on or before December 01, 2026. The Board further approved leasing the Rajkot land and building to generate steady recurring cash flows. This lease arrangement is subject to shareholder approval at the ensuing Annual General Meeting. During FY25-26, the Rajkot unit manufactured parts aggregating to ₹48.34 crore, which were entirely captively consumed or sold as spare parts, generating no independent turnover.

Board Appointments and Restatements

The Board approved the re-appointment of Mr. Mahendra J. Patel as Whole-time Director & Chief Financial Officer for a term of three years from April 1, 2027, to March 31, 2030. Additionally, Mr. Gurudeo Madhukar Yadwadkar was re-appointed as an Independent Director for a second consecutive term from August 11, 2026, to August 10, 2029. Both appointments are subject to shareholder approval.

The statutory auditors included an emphasis of matter regarding the restatement of figures for the quarter ended June 30, 2025. This adjustment followed the slump sale acquisition of the "EV L5 Division" from subsidiary Atul Greentech Private Limited effective January 15, 2026. The transaction was accounted for using the pooling-of-interest method under Appendix C of Ind AS 103, requiring comparative figures to be restated irrespective of the actual combination date.

Atul Auto reported a robust 39.86% year-on-year increase in total three-wheeler sales to 3,800 units for July 2026, driven primarily by strong export demand and domestic uptake of internal combustion engine (ICE) vehicles. The company’s combined domestic and export sales rose from 2,717 units in July 2025 to 3,800 units in July 2026. This performance signals sustained momentum in the commercial three-wheeler segment, even as electric vehicle (EV) sales faced a temporary contraction.

The filing was submitted to the Bombay Stock Exchange and National Stock Exchange on August 1, 2026, by Mahendra J Patel, Whole-time Director and CFO of Atul Auto Limited. The data covers sales up to July 2026 and includes year-to-date (YTD) figures for FY27 compared to FY26.

Monthly Sales Breakdown

Domestic sales grew by 28.60% to 3,215 units in July 2026, up from 2,500 units in the same month last year. The growth was anchored by ICE vehicles, which saw a 44.24% surge to 2,680 units from 1,858 units. Conversely, EV sales declined by 16.67% to 535 units from 642 units.

When including exports, the ICE segment demonstrated exceptional strength, rising 57.35% to 3,265 units from 2,075 units. Total combined sales reached 3,800 units, reflecting a significant expansion in market reach beyond domestic borders.

Year-to-Date Performance

For the year-to-date period ending July 2026, Atul Auto has sold 13,678 units across domestic and export markets, a 41.76% increase over the 9,649 units sold in the corresponding period of FY26. Domestic YTD sales stood at 11,533 units, up 31.13% from 8,795 units in FY26.

ICE vehicles accounted for the majority of this growth, with combined YTD sales reaching 11,325 units, a 55.48% jump from 7,284 units. EV YTD sales remained relatively flat at 2,353 units, showing a marginal decline of 0.51% from 2,365 units in the prior year.

What the Numbers Show

The divergence between ICE and EV performance is notable. While ICE sales surged nearly 60% in exports and 44% domestically, EV sales contracted by 16.67% month-on-month. This suggests that current demand drivers are heavily skewed toward traditional fuel-based commercial vehicles, possibly due to price sensitivity or infrastructure constraints affecting EV adoption in the short term. The note clarifies that EV figures include sales by subsidiary Atul Greentech Private Limited until January 14, 2026, indicating a consolidation of reporting metrics that may influence direct year-over-year comparisons for the EV segment.