Astral Ltd. Shares Plunge as Q1 Profit Slumps by 33%

New Delhi, August 12, 2025: Shares of Astral Ltd., a leading manufacturer of building materials, were met with a significant sell-off on Tuesday, following the announcement of the company’s first-quarter earnings. The stock’s value was reduced by nearly 6% in morning trading after a sharp decline in profit was reported for the June quarter.

The company’s consolidated Profit After Tax (PAT) was reported as ₹81.1 crore, marking a substantial 32.6% year-on-year (YoY) decrease. This was in stark contrast to the ₹120.4 crore PAT that was recorded in the corresponding quarter of the previous fiscal year. This downturn was primarily attributed to a challenging market environment, which included significant volatility in polymer prices. The average price of PVC, a key raw material, was noted to have fallen by approximately 14% YoY, leading to inventory losses and a negative impact on product pricing.

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The company’s financial performance was further detailed in its other key metrics. A 1.6% YoY decline was seen in the company’s revenue, which totaled ₹1,361 crore for the quarter. In addition, a 14% reduction in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was reported, bringing the figure down to ₹184.7 crore. As a result, the company’s margins were also compressed, with a 195 basis point decrease, settling at 13.6% compared to the 15.5% achieved in the same period last year.

While the overall results were disappointing, some areas of the business were noted for their resilience. A strong performance was delivered by the bathware division, where sales saw a notable increase of 27.4% YoY. Growth was also seen in the adhesives business within India, with a 9.2% increase. The company’s paints business expanded by 20.7%, although its margin remained low at 1.4%.

During the quarter, several strategic initiatives were undertaken to drive future growth. Production capacity for plumbing products was expanded, and the acquisition of a 100% equity stake in Al-Aziz Plastics Private Limited was completed. This move was intended to enhance the company’s portfolio of fittings and accessories. An agreement was also reached to acquire an 80% stake in NEXELON Chem Private Limited, with the aim of manufacturing CPVC resin. Commercial production for this venture is expected to begin in the second quarter of fiscal year 2027.

The negative reaction from the market was reflected in the share price, but opinions from brokerage firms have been mixed. Some firms have downgraded the stock, suggesting that a lower entry point is needed, while others have maintained a ‘Hold’ rating, citing positive factors such as volume growth in specific segments and the company’s long-term expansion plans.