Astral (ASTRA IN) – Q2FY27 Result Update – Elevated RM Cost & Pass-through Lag Impact Margins – BUY
Published on 06 Nov 2026
Astral Ltd. (ASTRA) reported a decent Q2FY27 performance, supported by robust demand recovery in the plumbing segment, with double-digit volume growth expected to sustain through H2FY27. Management guided pipe & fittings volume growth of 10–13% in FY27, with EBITDA margins to be in the range of 16–18%. The implementation of MIP has provided downside protection to PVC prices, while the company has passed on the entire PVC price hike. ASTRA is evaluating an upgrade to its FY27 domestic adhesives revenue growth guidance of 15–20%, supported by robust H1FY27 revenue growth of ~25%. However, EBITDA margin guidance has been revised downwards to 13–14% from 15–17%, owing to elevated raw material costs, high-cost inventory and delays in passing on cost increases. UK Adhesives has returned to a growth trajectory, with management targeting 9–10% EBITDA margins by FY27-end. We expect ASTRA will achieve 14.3% volume CAGR in its P&F business over FY26-29. We estimate sales/EBITDA/PAT CAGR of 18.3%/20.6%/29.0% over FY26-29E. We have revised our FY28/FY29E estimates upward by 2.1%. Maintain ‘BUY’ rating with revised SOTP-based TP of INR 1,595 (INR 1,593 earlier).
