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Informist, Wednesday, Feb. 4, 2026
 

By Gunjan Rajput 

MUMBAI - Astral Ltd. is expected to report a modest rise in its December quarter net profit and revenue, driven by volume growth in the pipes and adhesives segments, according to brokerages tracking the company.

The pipes and adhesives maker's net profit for the December quarter is expected at INR 1.29 billion, up 13% on year, according to the average of estimates from eight brokerages. Sequentially, the net profit is expected to decline over 4% from INR 1.35 billion in the trailing quarter. The highest estimate for net profit is INR 1.42 billion by Motilal Oswal Financial Services Ltd., while the lowest estimate is INR 1.20 billion by YES Securities (India) Ltd.

The company's December quarter revenue is estimated at INR 15.65 billion, up over 12% on year. Sequentially, the company's revenue is expected to fall nearly 1% from INR 15.77 billion in the trailing quarter. The highest estimate for revenue is INR 16.21 billion from Motilal Oswal, while the lowest estimate is INR 15.20 billion from ICICI Securities Ltd.

The company's earnings before interest, tax, depreciation, and amortisation are expected at INR 2.44 billion for the December quarter, up nearly 6% on year from INR 2.31 billion a year ago. Sequentially, the EBITDA is expected to decline nearly 9% from INR 2.68 billion in the trailing quarter. The highest EBITDA estimate is INR 2.61 billion by IDBI Capital Market Services Ltd., while the lowest estimate is INR 2.35 billion by ICICI Securities.

The company's revenue growth is driven by market share gains in the plastic pipes segment, even as the non-implementation of anti-dumping duty has weighed on polyvinyl chloride prices, according to Elara Securities (India) Pvt. Ltd.

"With PVC prices down 5% QoQ (-10% YoY), companies are likely to post inventory losses. Additionally, the withdrawal of the BIS QCO (Bureau of Indian Standards Quality Control Order) and the non-implementation of anti-dumping duties on PVC imports may create near-term headwinds for domestic players," JM Financial Institutional Securities Pvt. Ltd. said.

The company's pipe volumes are expected to grow 13-15% in Oct-Dec, according to brokerages. Nuvama Wealth Management expects realisations to fall nearly 4% on year.

Astral's reported pipe profitability, or earnings before interest and tax per kilogram, is expected to decline nearly 24% on year due to a high base and inventory loss, according to ICICI Securities.

Brokerages have a mixed view on the company's EBITDA margin. IDBI Capital Market Services expects the margin to rise 79 basis points on year. Nuvama expects this margin to contract 10 bps on year to 15.6%, as EBITDA per tonne in the pipeline business is expected to deteriorate. Motilal Oswal expects the margin to remain broadly stable on a year-on-year basis.

 
Astral remains well positioned due to a higher mix of value-added products such as chlorinated polyvinyl chloride plumbing and adhesives, according to brokerages, which also expect the company's plastics and adhesives businesses to grow 15-20% and 13-18% on year, respectively.
 

Revenue from the plumbing segment is expected to grow 10.7%, and sanitaryware revenue is likely to rise 25%, according to Prabhudas Lilladher Pvt. Ltd.

Astral will detail its Oct-Dec earnings Thursday. The stock has fallen nearly 5% since the company reported its September quarter results. At 1340 IST, shares of the company traded at INR 1,489.20 on the National Stock Exchange, down nearly 1%.

Of the 10 brokerage reports on the company available with Informist, eight have a ‘buy' recommendation on the stock with an average target price of INR 1,754 per share. This is nearly 17% higher than the current market price. Two brokerages have a 'hold' recommendation with a target price of INR 1,621 per share.

Following are the December quarter earnings estimates for Astral Ltd. from eight brokerages in descending order of the estimate of net profit in INR billion:

End

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

Edited by Tanima Banerjee

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