Astral Ltd. (ASTRA IN) – Q3FY26 Result Update – Healthy volume growth, despite weak demand – BUY
Published on 06 Feb 2026
Astral Ltd (ASTRA) reported healthy volume growth of 16.8% in the plastic pipe segment despite a weak demand environment. The company delivered a plumbing EBITDA margin of 18.2% even after absorbing an inventory loss of Rs200–250mn. EBITDA per kg for the plastic pipes segment stood at Rs31.7 (₹~35/kg excluding inventory loss). Company maintained its double-digit volume growth guidance in the piping segment with EBITDA margin of 16-18%. We expect ASTRA will achieve 15.0% volume CAGR in its P&F business over FY26-28. Astral has appointed a new CEO for its UK adhesives business and expects a gradual recovery going forward. Additionally, the company expects the removal of China’s VAT rebate, which could lead to a Rs7–10/kg increase in PVC prices (already Rs7/kg PVC price hike during Jan–Feb’26), potentially supporting higher volumes. We estimate sales/EBITDA/PAT CAGR of 15.9%/18.7%/26.4% over FY26-28E. We tweaked ASTRA FY27/28E earnings by 1.3%/1.2%. Maintain ‘BUY’ rating with revised DCF-based TP of Rs1,794 (Rs1,736 earlier).
