Analyst Concall
Astral eyes substantial top line, margin growth in FY27
This story was originally published at 20:09 IST on 6 November 2025
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--Astral: See substantial improvement in top line, margins in FY27
--CONTEXT: Astral management's comments in post-earnings call with analysts
--Astral: Expect second half of FY26 to be better than H1
--Astral: Adding incremental capacity in Kanpur, Hyderabad plants
--Astral: New plants have low capacity utilisation, incurring losses
--Astral: Aim to grow mkt shr further, will pass cost benefits to consumers
--Astral: FY26 capex guidance of INR 3 bln-INR 3.5 bln intact
By Avishek Rakshit & Simran Rede
KOLKATA/MUMBAI – Having maintained a top line growth outlook of 20% for the current financial year, pipe manufacturer Astral Ltd. eyes a substantial improvement in its revenue and margins in the coming financial year, a top company official said Thursday.
"We are confident that by end of this fiscal and in next year we will see a substantial improvement in the growth of top line and the margin. This year we have given a guidance of 20% growth for the full year and we are going to achieve it as per the guidance given by us," the official told sector analysts in a post-earnings call.
While Astral is scaling up its main chlorinated polyvinyl chloride pipes, also known as CPVC pipes, business by localising manufacturing units that offer cost benefits, the company is also increasingly focusing on scaling up its paints and adhesives business. These measures are expected to lead to revenue growth. At the same time, the company is also increasing its focus on premium products which will aid the margins.
"In the first half we have grown at 20%. However, our acceptance in new projects is increasing fast and our order book is also improving. It clearly indicates that in the coming time, the business will scale up and reach at a good level," the official said.
The company is planning to add new machinery in its newly launched plants in Hyderabad and Kanpur latest by September next year and is also entering new cities, towns and rural areas which is not only leading to top line growth but also helping the company gain market share nationally.
"The EBITDA (earnings before interest, tax, depreciation, and amortisation) margin are also very stable and moving in the range of 15-16% continuously. We are confident that this run rate will continue in the coming fiscal," the official said.
In its adhesives business in the UK, which has been facing a tough time for the past several quarters now, Astral has appointed a new chief executive officer hoping for a bounce back, the official said, adding that the company has opened nine new depots in Gujarat, Rajasthan and Maharashtra to scale up its paints business.
"We are confident in this quarter we will be growing in the UK business as a substantial growth percentage and margin percentage," the company official said.
However, the new loss-making plants in Hyderabad and Nagpur currently have low capacity utilisation owing to muted demand conditions and on average, polyvinyl chloride price dropped by 10.6% on year. While the company passed on the benefits of low cost to consumers, leading to price cuts to increase its market share, its top line would have been hit had it not registered a volume growth of 20.6%, which made up for the price cuts.
The official said Astral will continue to pass on cost benefits to consumers to aid its market share. Along with lower raw material costs, localised production also helps the company save logistics costs.
"We have delivered our number as per our guidance of double-digit growth in volume terms in H1 (first half of current financial year)... Historically if you see, H2 (second half of current financial year) is much better than the H1," the official said.
The official said that for the ongoing financial year, Astral will maintain its capital expenditure guidance of INR 3 billion-INR 3.5 billion.
Thursday, shares of Astral closed 6.74% higher at INR 1,566.10 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
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