Astral shares drop 7% after Q4 earnings; here’s what analysts at Jefferies, CLSA said

Astral shares slipped 7% to touch an intraday low of ₹1,440.50 apiece on Tuesday, May 19, as the firm's March quarter earnings failed to impress the market investors.

The company reported a 20% jump in consolidated net profit at ₹213 crore for the fourth quarter of the financial year (Q4 FY26) as compared to ₹179 crore in the same period last year.

Its revenue from operations also grew 24% year-on-year (YoY) to ₹2,089 crore in the January-March period from ₹1,681 crore in the year-ago period.

Astral reported strong operational performance as its earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased 25.5% annually to ₹383 crore as against ₹305 crore in Q4 FY25.

The operating profit margin in the reporting quarter expanded marginally to 18.34%, in contrast to 18.14% on a yearly basis.

For FY26, the company’s consolidated net profit stood at ₹537 crore as against ₹524 crore in FY25, rising 2.5%. The revenue from operations increased 13% for the full year at ₹6,569 crore against ₹5,832 crore in the preceding financial year.

Astral, in a statement, said that it had increased its pipes and fittings production capacity to 417,645 tonnes during FY26 from 381,957 tonnes.

“The company commenced operations at its Kanpur facility in October 2025, and since then significant improvement has been observed in sales across Uttar Pradesh and the surrounding regions. As part of the first phase of expansion, we have installed a capacity of 19,037 M.T.,” Astral said in a statement.

The company said that its consolidated cash, including cash equivalents and bank balances, stood at ₹943 crore as of March 31, 2026. It added that Astral incurred a capex of ₹328 crore on a standalone basis and ₹373 crore on a consolidated basis during the year.

Here’s what analysts said

CLSA analysts noted that Astral’s Q4 EBITDA came in line with expectations, while profit after tax fell short due to higher foreign exchange fluctuation costs and an elevated tax rate. They highlighted that piping volume growth remained strong at 24% year-on-year during the quarter, indicating market share gains, with robust profitability in the piping segment in terms of EBITDA per kg and margins.

However, they pointed out that consolidated margins were impacted by the adhesives segment. The analysts expect further clarity in the upcoming meet on growth guidance, capacity expansion ramp-up, traction in new product segments, and the roadmap for the overseas adhesives business.

Meanwhile, Jefferies analysts indicated that Astral’s March quarter profit came in ahead of expectations, driven largely by strong performance in the plumbing segment, which contributes around 70% to the overall sales mix. They highlighted that plumbing volumes grew about 24% year-on-year to nearly 84,000 MT, with segmental sales rising 25% and EBIT margin expanding to 19.1%, up 280 basis points.

In a note on Tuesday, they said that margins in the adhesives segment declined sharply, with EBIT margin contracting by around 500 basis points, likely due to higher VAM costs, even as sales in the segment grew a healthy 22%.

Dividend details

Astral said that its board of directors has recommended a final dividend of ₹2.50 per equity share of face value ₹1 each for the financial year ending March 31, 2026, subject to the approval of members at the ensuing annual general meeting (AGM).

The company added that the date of the AGM and the timeline for dividend payment or dispatch of dividend warrants will be communicated in due course.

Astral share price

At 12:16 PM, Astral shares were trading at ₹1,456.40 apiece on the National Stock Exchange, declining 5.78%.

Over a month’s time, the stock has fallen 8%, while it has tumbled 10% in the last three months. From the beginning of the year, Astral shares have gained nearly 2%.

The company has a market capitalisation of ₹39,136.96 crore.

Shares of the company had touched their one-year high of ₹1,768.70 apiece on March 11, 2026, while their 52-week low of ₹1,263.70 was hit on August 12, 2025.