Astral Q1 FY27 Results (NSE: ASTRAL)
Signal: Margin expansion
The read
The positive inflection is the return to 15.9% consolidated revenue growth and 51.8% PAT growth after Q1FY26 revenue declined 1.7% YoY and OPM contracted 200bps, but the 14.7% operating margin remains below Q4FY26's 18% and the standalone-to-consolidated PAT gap shows that subsidiaries are still dilutive.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,578 Cr | +15.9% | -24.4% |
| Net profit | ₹120.2 Cr | +51.8% | |
| EPS | ₹4.47 | +48.0% | |
| EBIT margin | 14.7% |
P&L walk
Revenue increased 15.9% YoY to ₹15,780 million, operating margin expanded about 110bps to 14.7%, and PAT increased 51.8% to ₹1,202 million, with the bottom line helped by operating profit growth and a low comparative base.
Segments
Paints and Adhesives was the faster-growing revenue segment at ₹5,275 million, up 29.5% YoY, but Plumbing remained the main profit driver with ₹1,414 million of segment result versus ₹197 million for Paints and Adhesives; subsidiaries additionally reported ₹138 million of aggregate net loss.
Key positives
- Consolidated revenue reached ₹15,780 million, up 15.9% YoY, led by Paints and Adhesives revenue growth of 29.5% YoY.
- Operating margin improved about 110bps YoY to 14.7% as gross margin expanded about 120bps and net finance cost fell 52.8% YoY to ₹58 million.
- PAT increased 51.8% YoY to ₹1,202 million and EPS rose 48.0% to ₹4.47, with EPS tracking attributable-profit growth.
Key concerns
- Consolidated operating margin of about 14.7% was roughly 360bps below the immediately preceding quarter's 18%, so the sequential margin recovery is incomplete.
- Eight subsidiaries reported ₹2,118 million of revenue but an aggregate net loss after tax of ₹138 million, leaving consolidated PAT of ₹1,202 million below standalone PAT of ₹1,358 million.
- Paints and Adhesives generated ₹197 million of segment result on ₹5,275 million revenue, while Plumbing generated ₹1,414 million on ₹10,505 million, showing that the faster-growing segment is not yet the main earnings contributor.
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