Atul Auto shares zoomed 13% to ₹504, reaching a three-month high following exceptional Q3 FY26 results that showed significant profit growth. According to latest reports from Business Standard, the company's consolidated net profit jumped 98% year-on-year to ₹15.35 crore in Q3 FY26 compared to ₹7.75 crore posted in Q3 FY25. The strong performance was driven by robust operational metrics across key financial indicators, with the latest surge reflecting continued investor confidence in the company's growth trajectory and operational efficiency improvements.
Total revenue from operations demonstrated solid growth, increasing 18% year-on-year to ₹230.86 crore in the quarter ended December 31, 2025, compared to ₹194.99 crore in the previous year. As reported by Business Standard, the company achieved a profit before tax of ₹20.02 crore, marking a substantial 100.60% increase compared to ₹9.98 crore recorded in the same period of the previous year. The automobile business, which accounts for over 95% of total revenue, contributed ₹220.5 crore with 20.62% year-on-year growth, while the non-banking financial business contributed ₹10.5 crore during the quarter.
The company demonstrated strong operational performance with EBITDA gaining 64.7% to ₹28 crore and EBITDA margins expanding by 300 basis points year-on-year to 12%, as reported by Live Mint. This significant improvement in profitability metrics reflects the company's operational efficiency and market positioning in the three-wheeler manufacturing sector. Total expenses increased 13.07% to ₹210 crore in Q3 FY26, compared with ₹185.72 crore in Q3 FY25, with employee benefit expenses at ₹20.31 crore, up 8.55% year-on-year, and cost of material consumed at ₹152.06 crore, up 11.75% year-on-year during the quarter.
Atul Auto witnessed a significant uptick in its January 2026 performance, driven primarily by robust demand in its domestic three-wheeler internal combustion engine (ICE) category. According to Business Standard, total sales for the month, including exports, surged 30% to 3,606 units. In the domestic market, the company's ICE three-wheeler segment recorded a 40.82% year-on-year increase, with sales reaching 2,301 units compared to 1,634 units in January 2025. The electric vehicle portfolio showed mixed results: L3 sales grew marginally by 3.47% to 537 units, while L5 sales saw a sharp decline of 53.78% to 104 units, with overall domestic volumes for January rising 23.72% to 2,942 units.
The strong quarterly performance has attracted significant investor attention, with Atul Auto shares regaining strength in February, surging 23.5% after remaining in a downturn for three consecutive months. As reported by Live Mint, the stock currently trades 40% lower than its record peak of ₹844 reached between June 2022 and July 2024, when it delivered a massive 194% return to shareholders. Notable investor Vijay Kedia, through his brokerage firm Kedia Securities Private Limited, held a 2.71% stake in the company at the end of December quarter, while he maintains a personal 18.20% stake in Atul Auto, making it his top holding worth over ₹285 crore in his portfolio.
