Summary:
Astral Limited reported 26% YoY revenue growth to ₹1,988.3 crore in Q2FY27, but net profit declined 5.6% to ₹127.3 crore. EBITDA margins contracted amid rising raw material costs, sending shares down over 12% to a fresh 52-week low.
Astral Limited (NSE: ASTRAL | BSE: 532830) reported a 26% YoY increase in consolidated revenue for Q2FY27, but its net profit declined 5.6%. The results highlighted rising raw material costs and pressure on operating margins despite healthy demand for plumbing products.
The company's shares plunged over 12% on November 6, 2026, following the earnings announcement.
Astral Q2FY27 Financial Highlights
Astral's consolidated revenue from operations increased to ₹1,988.3 crore from ₹1,577.4 crore in Q2FY26, registering 26% YoY growth.
However, profit after tax declined to ₹127.3 crore from ₹134.8 crore in the corresponding quarter last year.
EBITDA increased only 1.5% YoY to ₹272.3 crore, considerably slower than revenue growth.
The EBITDA margin contracted to 13.7% from 17% in Q2FY26, reflecting pressure on profitability.
Profit before tax increased marginally to ₹181.4 crore, while earnings per share declined from ₹5.02 to ₹4.73.
The results showed that higher sales were insufficient to offset the impact of rising operating costs.
Plumbing and Adhesives Business Performance
Astral's plumbing business recorded 25% YoY revenue growth to ₹1,398.3 crore.
Sales volumes increased 19.1% to 72,934 metric tonnes, compared with 61,224 metric tonnes in Q2FY26.
The segment's EBITDA rose 6.9% to ₹227.6 crore. However, its margin declined from 19% to 16.3%.
Higher PVC and CPVC raw material prices affected profitability because the increase in product selling prices did not fully offset input cost inflation during the quarter.
The paints and adhesives business reported 28.6% YoY revenue growth to ₹590 crore.
Despite higher sales, segment EBITDA declined 19.2% to ₹44.7 crore, with the margin falling from 12.1% to 7.6%.
Both domestic and international adhesives recorded revenue growth, but higher material costs and delayed price revisions weighed on earnings.
Why Astral Share Price Fell Over 12%
Astral shares dropped as much as 12.4% on November 6, touching an intraday low of ₹1,215.50 on the NSE, which was also a fresh 52-week low.
The sharp decline followed the company's weaker profitability despite strong revenue growth.
Operating margins contracted across both major business segments, raising concerns about the near-term impact of input cost inflation.
At around 10:20 am, the stock was trading near ₹1,237, down approximately 10.6%.
The fall showed that the market reaction was driven more by margin pressure and declining profit than by the company's revenue growth.
What Could Drive Performance in H2FY27?
Astral has implemented selling price increases for PVC and CPVC products during Q3FY27 to recover higher raw material costs.
Its plumbing business continues to target double-digit volume growth for FY27, with an operating margin range of 16–18%.
The company is also developing a 40,000 metric tonne CPVC resin facility, with commercial readiness planned for Q4FY27. Benefits from this backward integration project are expected to become more visible from FY28.
Additional growth opportunities include bathware, adhesives, paints and speciality chemicals.
Astral's Q2FY27 performance reflected healthy demand but weaker profitability. Future earnings will depend on raw material prices, successful price increases and improvement in segment margins, particularly within paints and adhesives.
