ATUL Q2 FY27 Results Analysis: PAT Falls 13%, Revenue Surges 21%

ATUL's Q2 FY27 numbers came in mixed, with revenue of Rs. 1,877.04 Cr (+20.95% YoY) and PAT growth of -13.12% YoY. Here's a quick read of what worked, what to watch, and what management said.

Key Investment Insights

Key Positives

• Consolidated revenue grew 20.95% YoY to Rs.1,877.04 Cr; H1 FY27 revenue up 22.94% YoY to Rs.3,724.99 Cr
• H1 FY27 consolidated PAT-to-owners grew 30.62% YoY to Rs.401.02 Cr; normalized H1 PAT +27.64% YoY
• Inventory-timing-neutral EBITDA grew 8.33% YoY to Rs.318.74 Cr (16.98% margin) despite reported EBITDA declining 6.51%
• Performance & Other Chemicals revenue grew 31.34% YoY with H1 segment margin expanding to 12.54% from 9.22%
• Net cash position of ~Rs.2,727.00 Cr (cash + investments Rs.2,893.50 Cr vs borrowings Rs.166.50 Cr)
• H1 FCF of Rs.304.33 Cr with CFO/PAT of 0.95x; phenoxy capex on track from internal accruals

Risk Factors

• PAT attributable to owners declined 13.12% YoY and EPS fell 13.12% to Rs.52.89 despite 20.95% revenue growth
• Company-basis EBITDA margin compressed ~464 bps YoY to 15.80%; materials intensity rose to 57.11% of revenue from 53.40%
• Life Science Chemicals segment result fell 30.96% YoY with margin down ~663 bps to 16.31% on weak agro demand
• Consolidated ETR rose to 25.97% from 21.15% YoY (~480 bps drag, ~Rs.10 Cr of the PAT decline)
• Standalone inventory-neutral EBITDA fell 14.47% YoY with parent materials intensity at 59.88% vs 53.17%
• Effluent-pipeline incident of October 16, 2026 has no provision or financial-impact disclosure in the filing