Astral jumps 9.5% as strong pipe performance drives Q1 PAT 52% higher
According to Motilal Oswal Financial Services (MOFSL), Astral delivered a mixed first quarter, but missed its estimates by 5-13 per cent.
 "Astral jumps 9.5% as strong pipe performance drives Q1 PAT 52% higher")
Shares of Astral Ltd rose 9.5 per cent in intraday trade on Thursday after the company reported strong numbers for the June quarter (Q1FY27), with its net profit rising by 52 per cent.
The pipe maker's stock opened 2.5 per cent higher at ₹1,499 on the National Stock Exchange (NSE) and extended the gains to make a high of ₹1,598.70.
As of 12:25 PM, the stock was trading near the day's high, at ₹1,582, with more than 8.5 million equities changing hands.
With this, the stock was on course to log its biggest single-day gain in almost six years.
Astral shares have gained 10.5 per cent so far in 2026 and 22 per cent in a year, outperforming the benchmark Nifty 50, which has declined 6.8 per cent and 1 per cent, respectively, in the same duration. Astral Q1 results Notably, Astral has reported an increase of 52 per cent in its consolidated net profit to ₹120 crore for Q1, compared with ₹79 crore posted in the year-ago period.
Its revenue from operations stood at ₹1,578 crore in the reporting quarter, up 16 per cent from ₹1,361 crore posted in the same quarter of the previous fiscal year.
According to Motilal Oswal Financial Services (MOFSL), Astral delivered a mixed first quarter, but missed its estimates by 5-13 per cent.
Astral's Ebitda grew by 25 per cent and declined by 40 per cent sequentially in Q1 to ₹203 crore, but it was below MOFSL's expectation. Ebitda margin expanded 107 bps Y-o-Y and contracted 368 bps Q-o-Q to 14.7 per cent, affected by weak margins in the adhesive and paint businesses. The gross margin stood at 40.6 per cent, affected by partial pass through of RM cost inflation.
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MOFSL said that the overall demand scenario in the plastic pipe industry was weak in Q1, mainly due to volatility and a downward trend in polymer prices. While the plastic pipe industry volume is expected to have declined 10 per cent Y-o-Y in Q1, Astral reported a flat volume (best among peers), and thus continued to gain market share. Higher pipe realisation led to segment revenue growing by 10 per cent Y-o-Y. Pipe Ebitda margin stood high at 18.9 per cent, while Bathware revenue grew by 18.1 per cent.
The management has maintained a guidance of double-digit volume growth and more than 20 per cent value growth in FY27 in the pipe business. The company also expects current high realisation to sustain in the coming quarter due to the upward reversal in PVC prices in Q2 and also the implementation of the MIP, which will protect the floor price of PVC.
Its adhesives' India business revenue grew by around 25 per cent Y-o-Y with a 12.2 per cent Ebitda margin. Overseas business revenue grew 26 per cent Y-o-Y with a 4.9 per cent Ebitda margin. The paints segment reported a revenue growth of 48.7 per cent Y-o-Y with Ebitda at breakeven level.
The brokerage now estimates a CAGR of 16 per cent/ 22 per cent/ 30 per cent over FY26-28 with its RoE and RoCE (pre-tax) reaching 18 per cent and 26 per cent, respectively, in FY28.
MOFSL has retained its ‘Buy’ rating on the stock and revised the target price to ₹1,697. The target implies an upside of around 16 per cent from the previous close of ₹1,464.
Meanwhile, JM Financial has maintained 'Add' rating on Astral and revised the target price to ₹1,625 from ₹1,600, saying Q1FY27 results were broadly in line and that the growth momentum remains intact.
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