Atul's Q4 profit rose 62.24% as operating margin improved
Revenue grew faster than expenses, but other income supplied 31.71% of pre-tax profit and the tax rate rose 12.15 percentage points sequentially.
Filed 24 Apr 2026, 14:04 IST · Atul Ltd (ATUL)
Key takeaways
- Consolidated net profit rose 62.24% year on year to Rs 211.12 cr, helped by a 1.45 percentage-point expansion in operating margin.
- Other income contributed 31.71% of pre-tax profit, making the quarter's earnings quality a key consideration.
- Atul's operating margin of 16.81% remained 1.96 percentage points below the 18.77% median for 51 reported commodities peers.
Price around the results
Revenue growth lifted Q4 operating leverage
Consolidated revenue grew 15.05% year on year, while expenses rose 13.07%, allowing operating profit to increase 25.93%. The resulting operating-margin expansion of 1.45 percentage points was also visible sequentially: revenue grew 6.13% against expense growth of 4.73%, widening the margin by 1.11 percentage points.
Other income was material to reported profit
Other income accounted for 31.71% of pre-tax profit, so the 62.24% year-on-year increase in net profit was not driven only by operations. The tax rate rose 12.15 percentage points sequentially, limiting the conversion of higher pre-tax profit into net profit; year on year, the tax rate was up 1.71 percentage points. Interest expense fell 20.66% year on year but rose 16.22% sequentially.
Margin recovered after Q3 but stayed below peers
The operating margin has moved from 15.36% in Q4FY25 to 15.93%, 17.24%, 15.70% and 16.81% over the following four quarters. That makes Q4FY26 a recovery from Q3FY26, rather than a continuation of the Q2 peak. Atul's 16.81% margin was below the 18.77% median among 51 commodities peers that had reported.
The market reaction was within Atul's usual range
The stock fell 0.69% on the results date after opening 1.06% higher, then gained 3.31% over five sessions. The five-session move was close to the stock's 3.15% median absolute reaction after its last eight results, when four outcomes were positive and four negative.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,670 cr | ₹1,574 cr | +6.13% | +15.05% |
| Other income | ₹92 cr | ₹40 cr | +129.36% | +82.06% |
| Expenses | ₹1,389 cr | ₹1,327 cr | +4.73% | +13.07% |
| Operating profit | ₹281 cr | ₹247 cr | +13.63% | +25.93% |
| Operating margin (%) | 16.81% | 15.70% | — | — |
| Interest | ₹4 cr | ₹4 cr | +16.22% | -20.66% |
| Depreciation | ₹79 cr | ₹80 cr | -0.64% | -2.96% |
| Profit before tax | ₹289 cr | ₹203 cr | +41.89% | +55.15% |
| Tax | ₹92 cr | ₹40 cr | +129.74% | +63.97% |
| Net profit | ₹211 cr | ₹164 cr | +29.09% | +62.24% |
| EPS (₹) | ₹71.38 | ₹54.60 | +30.73% | +66.12% |
Operating margin of 16.81% compares with a Commodities sector median of 18.77% across 51 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.69% | +0.45% |
| Next session | -0.40% | — |
| 5 sessions | +3.31% | +3.53% |
| 15 sessions | +2.31% | — |
| 30 sessions | -1.09% | — |
Volume on the results session was 9.86× its 20-day average.
What to watch
- Whether operating margin holds above 16.81% after recovering from 15.70% in Q3FY26.
- Whether other income remains below or above its 31.71% share of pre-tax profit.
- Whether the tax rate moderates from 31.78% after rising 12.15 percentage points sequentially.