Hold Atul: target of Rs 6600: ICICI Securities

Hold

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26 Aug, 2025 12:21

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ICICI Securities's research report on Atul

Atul Ltd’s (Atul) Q1FY26 EBITDA rose just 5.5% YoY at INR 2.4bn, and was hurt from under-performance in standalone business where EBITDA declined 12.5%; entire growth came from subsidiaries (up 93% YoY). This implies business mix deteriorated with rising contribution of commodity (caustic soda). 2,4-D prices dipped 9% QoQ, adding to the pain; export volumes were flattish, and India agro-chemical sales failed to offset. Epoxy export volumes did not rise for Atul,
while prices of other key products in performance segment were under pressure.

Outlook

Reduce EPS by ~5% each for FY26/27E and cut TP to INR 6,600 (from INR 6,950) with an unchanged FY27E P/E multiple of 25x. Maintain HOLD.

For all recommendations report, click here

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Atul_23072025_ICICI Securities