Astral (ASTRA IN) – Q1FY27 Result Update – Robust Growth Momentum Despite Polymer Volatility – BUY
Published on 12 Aug 2026
Astral Ltd (ASTRA) reported a resilient Q1FY27 performance despite a challenging polymer environment, with the plastic piping industry declining ~9–10% YoY. The company reported flat plumbing volumes and 10.1% value growth, indicating continued market-share gains. Management maintained its FY27 guidance of ~10–15% volume growth in the piping segment with EBITDA margins of 16–18%. Plumbing volumes grew ~40% YoY in July and continued to track at double-digit growth in August, supported by channel restocking and improving end-user demand. The implementation of MIP on PVC is expected to reduce polymer price volatility and improve inventory visibility. For Adhesives business, management expects ~15–20% revenue growth in FY27, with EBITDA margins expected to recover towards 15–17% as raw-material costs soften and the impact of the 6–8% price hikes flows through. The UK adhesives business is expected to deliver double-digit revenue growth with EBITDA margins of 8–10% in FY27. We expect ASTRA will achieve 13.5% volume CAGR in its P&F business over FY26-28. We estimate sales/EBITDA/PAT CAGR of 18.4%/22.1%/33.8% over FY26-28E. We tweaked our earnings estimate for FY27/28E. Maintain ‘BUY’ rating with revised DCF-based TP of Rs1,684 (Rs1,779 earlier).
