We have reduced our FY18/19/20E EPS in the range of 8-10% factoring in delay in STA approval for its gasoline vehicle and reduce TP to Rs.488 (16x Sept 19 earrings) vs 528 earlier. Maintain BUY. Atul Autos (AAL) 2Q EBITDA at Rs 269mn (+22% YoY, +122% QoQ) was above estimates. EBITDA margin expanded to 16.8% (+142bps YoY, 647bps QoQ) led by cost control measures and benefit of operating leverage. Net revenue at Rs 1.6bn (+11.4% YoY) was led by 4% increase in volumes to 12.2k and 7% net ASP. APAT came in at Rs 170mn (+24% YoY, +117% QoQ).