Astral shares rally 9% as Q1 profit soars 48% YoY; here’s what analysts at CITI, UBS, CLSA said

At around 12:41 PM, the stock stood at ₹1,582.10 per equity share, up by 8.07%, compared to Wednesday’s closing price of ₹1,464 per unit.

The scrip has climbed 10% in the past week and 19% over the month. On a year-to-date (YTD) basis, it has soared 10%.

While the shares hit a 52-week high of ₹1,768.70 per unit on March 11, 2026, they touched a year’s low of ₹1,263.70 on August 12, 2025.

Astral Q1 results

The company posted a 47.97% year-on-year (YoY) growth in its consolidated net profit (attributable to the owners of the company) to ₹120 crore during the quarter under review, compared to ₹81.1 crore in the April-June quarter of the 2025-26 fiscal year (Q1 FY26), according to a regulatory filing dated August 12.

Its revenue from operations increased by 15.9% YoY to ₹1,578 crore in the first quarter of FY27, from ₹1,361.2 crore in the year-ago period.

At an operational level, its EBITDA (earnings before interest, tax, depreciation and amortisation), also known as operating profit, stood at ₹244 crore for the reporting quarter, marking a 25.8% YoY surge from ₹194 crore in Q1 FY26.

Its EBITDA margin expanded by 120 basis points (bps) YoY to 15.5% in the June FY27 quarter, from 14.3% in the same period last year.

Key earning highlights

The segment closed the quarter with flat volume and recorded an EBITDA of 18.9%, the highest among industry players. During the quarter, Astral increased its Pipes and Fittings production capacity from 4.18 million tonnes (MT) to 4.21 MT.

The vertical saw its revenue from operations soaring 10.1% YoY to ₹1,050 crore in the June FY27 quarter, from ₹953.9 crore in the year-ago period.

“We are continuously gaining market share in the Adhesive Business in India, but due to higher prices of raw materials in stock and a price rise that took place with a gap, there was pressure on margins, which we are confident will be overcome in the next quarter,” the firm stated in a press release.

The company further said it's expecting a recovery in its adhesive overseas business in FY27.

During the quarter, Astral’s paint business grew by a robust 48.7% in revenue and witnessed an EBITDA break-even.

Its paint business delivered robust growth, with all six operating states contributing to momentum and reinforcing growing market acceptance across geographies.

Here’s what analysts said

Astral’s first quarter was largely in line with expectations, with flat volume growth, compared to a 10% YoY fall in the industry. It was largely driven by sharp channel destocking due to volatile polyvinyl chloride (PVC) prices, the analysts noted.

They added that the EBITDA for the company’s piping business improved, while adhesives were impacted by high-cost inventory. The management maintained the guidance across segments, which the analysts think is largely achievable.

The analysts said that the firm’s management remained confident about achieving its guidance for 10-15% volume growth and an additional 10% value growth from the plumbing segment in FY27.

Astral’s Chlorinated Polyvinyl Chloride (CPVC) backward integration project remained on track for the fourth quarter of FY27, which should support margin expansion and market share gains in FY28, the analysts added.

The analysts believe that the company’s decentralised manufacturing strategy, along with its favourable PVC prices, will aid in gaining market share and achieving superior profitability.

MSCI index exclusion

As per the latest official release, global index services provider MSCI on Thursday said that it will be adding four Indian companies to its ‘Global Standard Index’ while removing three firms as part of the August 2026 review.

Astral is among the three companies that will be removed from the MSCI index in the upcoming period, effective after the market close of August 31, 2026, and from September 1, 2026.

Astral has a total market capitalisation of ₹42,425.23 crore as of August 13, 2026, according to data on the NSE.