Vijay Kedia Stock Skyrockets 13% After Net Profit Increases 114% YoY

Synopsis:  An Auto rickshaw manufacturer reported 114 percent YoY Q3FY26 profit growth, with 9MFY26 profits doubling and exceeding FY25, driving strong stock momentum and highlighting sustained earnings acceleration. Ace investor Vijay Kedia holds more than 18 percent state in this company

A smallcap company in the business of  manufacturing and exporting Auto rickshaws announced its Q3FY26 result which stated a 114 percent YoY profit growth and also saw its 9MFY26 profit surge by 100 percent and stand 33 percent higher than the previous year total profit number.

With a market cap of Rs 1360 Cr, Atul Auto Ltd saw its stock hit an intraday high of Rs 504 which is 13 percent higher than the previous close of Rs 446. The company stock has given a compounded return of 19 percent in the last five years, while the three year number is at 7 percent.

The Q3FY26 Result

In the latest quarterly result the company has seen its revenue from operations increase by 18 percent YoY, from Rs 195 Cr in Q3FY25 to Rs 231 Cr in Q3FY26, while the QoQ increased by 15 percent from Rs 200 Cr. The net profits grew by 114 percent going from Rs 7 Cr in Q3FY25 to Rs 15 Cr in Q3FY26, while the QoQ increased by 87 percent from Q2FY26’s Rs 8 Cr.

In 9M numbers of the fiscal year, the company saw its revenue from operations increase by 14 percent YoY, from Rs 511 Cr in 9MFY25 to Rs 583 Cr in 9MFY26. The net profits for the same period grew by 100 percent going from Rs 12 Cr to Rs 24 Cr. Additionally, this 9MFY26 profit is 33 percent higher than the total FY25 profit of Rs 18 Cr.

The company has a 3 year sales CAGR of 32 percent, while the TTM is at 18 percent. The company’s 3 year profit CAGR is at 42 percent, while the TTM number is at 80 percent. The company has a ROCE of 6 percent and a ROE of 5 percent.

Revenue and Profit Mix

Atul Auto’s automobiles segment revenue grew 21 percent YoY to Rs 220 crore in Q3FY26, while the non-banking financial segment declined by 14 percent YoY to Rs 12 crore. On a nine-month basis, automobiles revenue rose 15 percent to Rs 549 crore, and non-banking revenue increased 11 percent to Rs 39 crore.

Talking about the segment mix of profits, the automobiles segment surged 72 percent YoY to Rs 19 crore in Q3FY26, while the non-banking segment jumped 175 percent YoY to Rs 3 crore. For 9MFY26, automobiles profits rose by 48 percent to Rs 34 crore, exceeding the full FY25 profit of Rs 33 crore, highlighting strong operational momentum.

January Sales

The Domestic sales in Jan-26 rose 24 percent YoY to 2,942 units, driven by strong 3W IC engine growth of 40 percent. EV L3 posted modest growth, while EV L5 declined sharply. YTD domestic volumes increased 6.2 percent, supported mainly by steady IC engine demand and stable EV performance.

While , the domestic plus export volumes grew by 30 percent YoY in Jan-26 to 3,606 units, led by a 46.2 percent surge in 3W IC engines. EV L3 remained stable, while EV L5 weakened. The YTD sales of domestic and export together climbed by 12 percent, reflecting robust international demand and consistent IC engine-led expansion across markets.

Ace Investor Holdings

As of Q3FY26, Vijay Kedia holds an 18.2 percent stake in Atul Auto Ltd. Based on available data, he has held the stock since 2015, when his stake was just over 1 percent, which has now increased by more than 1,700 bps.

Business Overview

Atul Auto Ltd is an Indian three-wheeler manufacturer based in Rajkot, Gujarat, producing passenger and cargo vehicles across diesel, petrol, CNG, LPG, and electric variants. With strong domestic and export presence, it focuses on affordable, reliable last-mile mobility solutions and sustainable transportation through its EV subsidiary, Atul Greentech.

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