Astral Q2 FY27 Results (NSE: ASTRAL)
Signal: Margin pressure
The read
The trajectory is volume-positive but margin-negative: plumbing volume rose 19.1% and group revenue 26.0%, yet EBITDA margin fell 330bps to 13.7% and PAT declined 5.6% because polymer and raw-material price increases were passed through with a lag; management expects better Q3 margins after full price increases were implemented.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,988.3 Cr | 26.0% | N/A |
| Net profit | ₹127.3 Cr | -5.6% | |
| EPS | ₹4.73 | -5.8% | |
| EBIT margin | 13.7% |
P&L walk
Revenue increased 26.0% to ₹19,883 million, led by plumbing revenue growth of 25.0% and 19.1% volume growth, but EBITDA rose only 1.5% to ₹2,723 million as margin contracted to 13.7%; PAT before OCI declined 5.6% to ₹1,273 million, consistent with operating pressure rather than a one-off profit driver.
Segments
Plumbing drove the quarter with revenue up 25.0% to ₹13,983 million and segment EBITDA up 6.9% to ₹2,276 million, while Paints and Adhesives grew revenue faster at 28.6% to ₹5,900 million but segment EBITDA fell 19.2% to ₹447 million, dragging consolidated margin.
Key positives
- Plumbing volume increased 19.1% to 72,934 MT and revenue rose 25.0% to ₹13,983 million, indicating value growth exceeded volume growth by 5.9 percentage points.
- Consolidated revenue grew 26.0% to ₹19,883 million, while Paints and Adhesives revenue grew 28.6% to ₹5,900 million.
- Plumbing EBITDA margin was 16.3% in Q2 and 17.4% for H1FY27, within the company's stated 16%-18% full-year range.
- CPVC resin backward-integration Phase I has 40,000 MT capacity, with trials expected by Q4FY27 and full benefit expected from FY28.
- Cash and cash equivalents plus bank balances stood at ₹4,590 million at September 30, 2026.
Key concerns
- Consolidated EBITDA grew only 1.5% to ₹2,723 million despite 26.0% revenue growth, and EBITDA margin contracted 330bps to 13.7%.
- Paints and Adhesives EBITDA declined 19.2% to ₹447 million and margin fell 450bps to 7.6% as volatile raw-material prices and delayed pass-through pressured profitability.
- Plumbing EBITDA margin declined 270bps to 16.3% despite 25.0% revenue growth, indicating that polymer-cost inflation was not fully absorbed through pricing during Q2.
- PAT before OCI fell 5.6% to ₹1,273 million and EPS fell 5.8% to ₹4.73, showing that revenue growth has not yet translated into bottom-line growth.
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