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Informist, Friday, Aug. 8, 2025

By Shakshi Jain

NEW DELHI – Astral Ltd. is expected to post steady year-on-year growth in its top line and bottom line for the June quarter, helped by strong double-digit volume growth in the paints and adhesives segment. The growth was likely restricted by a slower single-digit rise in volume in the plumbing business, which contributes three-fourths to its top line, amid weak demand, according to analysts. 

The pipes and adhesives manufacturer is expected to post a consolidated net profit growth of 5% on year at INR 1.27 billion for the June quarter, according to the average of estimates from nine brokerages. However, its bottom line is expected to decline 29% on quarter. The estimates for net profit are in a tight range, with the highest being INR 1.33 billion by Dolat Capital Market Pvt. Ltd. and the lowest at INR 1.17 billion by Yes Securities (India) Ltd.

Astral's consolidated revenue likely rose 7% on year but fell nearly 12% sequentially to INR 14.81 billion in the reporting quarter. The highest estimate for revenue is INR 15.29 billion from IDBI Capital Market Services Ltd., while the lowest is INR 14.05 billion from Nuvama Wealth Management Ltd.

In the March quarter, the company's consolidated net profit had fallen marginally on year to INR 1.79 billion, while its revenue from operations had risen over 3% to INR 16.81 billion. Sequentially, the company's bottom line had jumped 58% and its revenue had grown 20% in the three-month period.

Prabhudas Lilladher Pvt. Ltd. expects Astral's overall volume to have grown 5% on year in the June quarter. Most brokerages estimate a 4-8% volume growth on year for the pipes business in the plumbing segment. "Piping volumes to grow 5% YoY (year-on-year) with realisation expected to tread lower by 2% YoY; revenue is thus likely to grow 2% YoY," Nuvama said in a report.

Astral is expected to report earnings before interest, tax, depreciation, and amortisation of INR 2.34 billion for the June quarter, according to the average of estimates from eight brokerages. The EBITDA estimates range between INR 2.20 billion by Yes Securities and INR 2.45 billion by Dolat Capital.

Most brokerages expect the company's EBITDA margin for the June quarter to remain flat or fall marginally due to a decline in EBITDA per tonne in the pipes business. "Reported pipe profitability (EBIT/kg) to decline 4.8% YoY due to inventory losses, whereas adhesives margin to improve on low RM (raw material) cost," ICICI Securities said in a report.

Prabhudas Lilladher expects an EBITDA margin of 19.1% for the plumbing segment and 12.7% from the paints and adhesives business. "A higher mix of value-added products such as CPVC (chlorinated polyvinyl chloride) plumbing and adhesives should help to sustain margins in the challenging environment," Motilal Oswal Financial Services said in a report.

Astral will report its June quarter earnings on Monday. Investors will keenly watch the company management's commentary on capacity addition in the near term, the demand outlook for the ongoing financial year, and expectations tied to individual categories in the two broad segments.

Friday, shares of the company ended at INR 1,375.80 on the National Stock Exchange, down 2.8%. The stock is down marginally since the company reported its earnings for the March quarter. The stock is down 34% from its 52-week high of INR 2,097.75, hit on Aug. 9 last year.

Of the 15 research reports on the company available with Informist, nine have a 'buy' rating on the stock, while four have a 'hold' rating and two have 'sell' calls. The average of the target prices associated with the buy recommendations is INR 1,675.

Following are the Apr-Jun earnings estimates for Astral Ltd. in INR million, based on reports from nine broking firms in descending order of net profit:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Avishek Dutta

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