Mumbai — Indian chemical manufacturer Atul Limited reported a 12.6% decline in quarterly net profit on Friday, as weaker operating margins offset strong revenue growth. The company also announced plans to repurchase up to 90 crore rupees worth of its shares.
Atul posted a net profit of 159 crore rupees for the quarter ended September 30, 2026, compared with approximately 182 crore rupees during the same period last year.
Revenue from operations increased 20.9% to 1,877 crore rupees from 1,552 crore rupees in the corresponding quarter of the previous fiscal year, according to the company’s stock exchange filing.
Despite the higher sales, operating profitability weakened during the quarter.
Earnings before interest, taxes, depreciation and amortization (EBITDA) declined 7.7% to 246.5 crore rupees, compared with 267 crore rupees a year earlier.
The company’s EBITDA margin contracted to approximately 13% from 17% in the year-ago quarter, a decline of about four percentage points.
The results indicate that rising costs and margin pressures weighed on earnings even as the company recorded double-digit revenue growth.
Alongside its financial results, Atul’s board approved a share repurchase program valued at up to 90 crore rupees through open-market transactions on stock exchanges.
The board established a maximum repurchase price of 7,500 rupees per share. The authorized amount excludes transaction fees and other expenses associated with the buyback.
At the maximum approved price, the company could repurchase as many as 120,000 equity shares, representing approximately 0.41% of its outstanding equity capital.
However, the final number of shares acquired will depend on prevailing market prices and the amount spent under the repurchase authorization.
The company said promoters, members of the promoter group and individuals exercising control over Atul would not be eligible to participate in the buyback.
A dedicated committee has been established to supervise and implement the repurchase program.
Atul shares declined following the earnings announcement, reflecting investor concerns over the company’s weakening profitability.
The stock was trading at 5,678 rupees on the Bombay Stock Exchange at 2:33 p.m. Friday, down 5.36% from its previous closing price.
Atul Limited manufactures specialty and industrial chemicals used across several industries, including agriculture, pharmaceuticals, polymers, textiles and personal care.
The company’s latest quarterly performance highlights the challenges facing chemical manufacturers as higher sales volumes and revenue growth do not necessarily translate into stronger earnings when operating margins remain under pressure. (Source: IANS)
