Astral Ltd. (ASTRA IN) – Q2FY26 Result Update – Robust volume growth, despite weak demand – BUY
Published on 06 Nov 2025
Astral Ltd (ASTRA) has reported robust volume growth of 20.6% in the plastic pipe segment in weak demand scenario. Its plumbing EBITDA margin expanded by ~70bps YoY to 19.0%, with EBITDA per kg for the plastic pipe segment at Rs 34.8. Company maintained its double-digit volume growth guidance in the piping segment with margin of 16-18%. We anticipate ASTRA will achieve 14.7% volume growth in its P&F business. Astral has appointed a new CEO for its UK adhesives business and expects a steady recovery ahead. The company also expects the imposition of ADD by Nov’25, which could lead to a Rs 5–6/kg increase in PVC prices, likely boosting volumes further. We estimate sales/EBITDA/PAT CAGR of 14.6%/16.8%/21.6% over FY25-28E. We upward revise ASTRA FY27/28E earnings by 2.6%/1.9%. Maintain ‘BUY’ rating with revised DCF-based TP of Rs1,778 (Rs1,727 earlier).
