Atul Auto Stock: 80% Profit Jump Fuels 12% Surge for Vijay Kedia's Pick

Introduction

Shares of Atul Auto Limited, a prominent three-wheeler manufacturer and a key holding in veteran investor Vijay Kedia's portfolio, experienced a significant rally on Tuesday, November 11, 2025. The stock surged over 12% during intraday trading following the announcement of robust financial results for the second quarter of the fiscal year 2025-26. The strong performance, marked by an impressive 80% year-on-year growth in net profit, renewed investor confidence in the company.

Sharp Stock Reaction to Results

The market responded positively and swiftly to Atul Auto's strong quarterly report. The company's stock jumped as much as 12.62% during the trading session to reach an intraday high of ₹503.45 on the BSE. This was a substantial increase from its previous closing price of ₹447. Although the stock pared some of its gains, it closed the day at ₹481.20, still marking a significant gain of 7.95%. The surge in trading volume indicated strong buying interest from investors following the results.

Stellar Q2 Financial Performance

Atul Auto's financial report for the July-September 2025 quarter showcased remarkable growth. The company's consolidated net profit soared by 80.9% to ₹8.27 crore, compared to ₹4.57 crore in the same period of the previous fiscal year. This substantial increase in profitability was a key driver behind the stock's rally. On a sequential basis, the performance was even more striking, with the net profit growing over 210% from ₹2.9 crore reported in the first quarter of FY26.

Revenue and Sales Growth

The company's revenue from operations also saw healthy growth. Total revenue for Q2 FY26 stood at ₹200.17 crore, a 10% increase from the ₹181.65 crore recorded in the corresponding quarter of the previous year. This growth was supported by a solid operational performance, with the company selling 9,248 three-wheeler units during the quarter. This sales figure represents a notable improvement from the 6,929 units sold in the preceding quarter (Q1 FY26) and a 4.5% increase from the 8,850 units sold in Q2 FY25.

Financial Performance Summary

Vijay Kedia's Significant Stake

Atul Auto remains a significant investment for ace investor Vijay Kedia, whose holdings are closely tracked by the market. As of September 2025, Kedia personally held an 18.20% stake in the company, equivalent to 5,050,505 equity shares. Additionally, his investment firm, Kedia Securities Pvt. Ltd., held another 2.71% stake (751,512 shares). Combined, his total holding in Atul Auto is approximately 20.91%, comprising 5,802,017 shares. This large and sustained investment underscores his strong conviction in the company's long-term growth prospects.

Stock Performance in Context

While the recent surge is noteworthy, Atul Auto's stock has faced challenges over the past year. The share price has declined by about 12% in the last twelve months and has registered a similar negative return year-to-date in 2025. However, from a long-term perspective, the stock has delivered multi-bagger returns, appreciating over 193% in the last five years. The stock's 52-week high is ₹693, recorded on December 10, 2024, while its 52-week low is ₹407.05, touched on March 13, 2025.

Company Outlook

Headquartered in Gujarat, Atul Auto is a key player in the Indian three-wheeler market with an annual production capacity of 120,000 vehicles. The company manufactures a diverse range of passenger and cargo vehicles with various fuel options. The strong Q2 performance, driven by improved demand and operational efficiency, suggests a positive turn for the company. Market analysts believe that its strong foothold in rural markets and its focus on expanding its product portfolio could support sustained growth.

Conclusion

Atul Auto's impressive second-quarter results have provided a much-needed boost to its stock, reaffirming the company's recovery path. The significant jump in profitability and steady revenue growth have caught the market's attention. Investors will now be closely watching whether the company can maintain this growth momentum in the coming quarters and translate its operational strengths into consistent shareholder value.