Astral Q2 revenue climbs 26% as profit declines 5.6%

Astral Limited reported revenue from operations of Rs 1,988.3 crore in Q2 2026-27, up 26.0% year on year, but profit after tax before other comprehensive income declined 5.6% to Rs 127.3 crore as consolidated EBITDA margin fell to 13.7% from 17.0%.

How did Astral's consolidated Q2 results change?

Astral's revenue growth outpaced its operating-profit growth in Q2 2026-27. Revenue from operations increased from Rs 1,577.4 crore in Q2 2025-26 to Rs 1,988.3 crore, whereas earnings before interest, depreciation, tax and amortisation, or EBITDA, increased 1.5% to Rs 272.3 crore from Rs 268.2 crore.

Astral's consolidated EBITDA margin declined 3.3 percentage points to 13.7% in Q2 2026-27. Profit before tax margin decreased to 9.1% from 11.4%, while PAT before other comprehensive income, or OCI, represented 6.4% of net sales compared with 8.5% a year earlier. Basic and diluted earnings per share fell 5.8% to Rs 4.73 from Rs 5.02.

The H1 2026-27 comparison was different, with revenue rising 21.4% to Rs 3,566.3 crore and EBITDA increasing 11.7% to Rs 516.3 crore. Even so, H1 EBITDA margin declined to 14.5% from 15.7%, while PAT before OCI margin was 6.9%, compared with 7.3% in H1 2025-26.

Why did Astral's Q2 profit decline despite higher revenue?

Astral attributed the Q2 2026-27 margin pressure in its plumbing operations to polymer-price movements and the timing of price pass-through. Polymer prices fell initially in July but began rising from mid-July, and Astral said the full pass-through of Q2 increases in polyvinyl chloride, or PVC, and chlorinated polyvinyl chloride, or CPVC, occurred in Q3 2026-27.

The effect extended beyond accounting profit: cash profit fell 0.5% to Rs 206 crore from Rs 207.1 crore despite the Rs 410.9 crore increase in quarterly revenue. Cash-profit margin narrowed to 10.4% from 13.1%, showing that the decline was reflected in operating cash earnings as well as PAT before OCI.

Management said it expects better realisations and margins in Q3 2026-27 after implementing the PVC and CPVC price increases. It also said the implementation of a minimum import price, or MIP, should limit the downside in polymer-price volatility, although the filing does not quantify any resulting effect.

How did Astral's plumbing business perform in Q2?

Astral's plumbing business recorded revenue of Rs 1,398.3 crore in Q2 2026-27, up 25.0% from Rs 1,118.6 crore, while sales volume increased 19.1% to 72,934 metric tonnes from 61,224 metric tonnes. Astral said slightly better realisation meant value growth exceeded volume growth during the quarter.

Plumbing segment EBITDA grew more slowly than revenue, rising 6.9% to Rs 227.6 crore, and the margin declined to 16.3% from 19.0%. For H1 2026-27, plumbing revenue increased 18.2% to Rs 2,448.8 crore, volume rose 10.0% to 129,080 metric tonnes, and segment EBITDA margin eased to 17.4% from 17.8%.

Astral said plastic-pipe demand was robust in Q2 following a weak industry Q1 and light inventory in the system. Management said it remained in line with its full-year 2026-27 guidance for double-digit plumbing-pipe volume growth and its stated full-year plumbing EBITDA-margin range of 16% to 18%.

What happened in Astral's paints and adhesives business?

Astral's paints and adhesives business generated Rs 590 crore of Q2 2026-27 revenue, a 28.6% increase that exceeded plumbing's 25.0% growth rate. Segment EBITDA, however, declined 19.2% to Rs 44.7 crore from Rs 55.3 crore, reducing the segment margin to 7.6% from 12.1%.

Astral said its India adhesives business grew sales 25.3% in Q2 2026-27 and delivered EBITDA margin of 10.9%. The overseas adhesives business grew sales 30.1% and reported a positive EBITDA margin of 6.3%. Management attributed pressure in India adhesives to higher raw-material prices linked to geopolitical conditions and a lag in passing costs through.

Paint sales increased 39.9% in Q2 and 44.0% in H1 2026-27, although Astral said volatile raw-material prices and delayed cost pass-through kept margins under pressure. Extura Vivid, an exterior emulsion launched in Q1 2026-27, was supported through dealer, contractor and consumer initiatives during the quarter.

Specialty chemicals contributed standalone H1 2026-27 revenue of Rs 12.04 crore and EBITDA of Rs 1.66 crore after Astral Chemie Limited acquired a 60% partnership interest in Differentiated & Sustainable Solutions LLP, or DSS. The agreement was dated June 11, 2026, with the interest effective from April 1, 2026.

What are Astral's disclosed operational milestones?

Astral increased pipes and fittings production capacity to 425,195 metric tonnes in H1 2026-27 from 417,645 metric tonnes. Its Phase I CPVC resin backward-integration plant has capacity of 40,000 metric tonnes, and machinery installation was under way as of the November 5, 2026 announcement.

Management expects trials at the 40,000-metric-tonne CPVC resin facility to be completed in Q4 2026-27, with commercial readiness also targeted for that quarter. Astral said the plant is intended to support CPVC pipes and fittings market-share gains and margin improvement, with the full benefit expected from FY28 onwards.

Astral also planned to launch its Pex, or aluminium Pex, product in Q3 2026-27. Bathware sales grew 26.8% in Q2, while consolidated cash, including cash equivalents and bank balances, stood at Rs 459 crore on September 30, 2026. The board approved an interim dividend of Rs 1.50 per share on a face value of Re 1 each.

Conclusion

Astral's Q2 2026-27 results showed that 26.0% consolidated revenue growth did not translate into higher quarterly profit. Plumbing revenue rose 25.0% and paints and adhesives revenue rose 28.6%, but their respective EBITDA margins declined to 16.3% and 7.6%, contributing to the 5.6% fall in PAT before OCI.

The next disclosed markers are Q3 2026-27 realisations and margins following PVC and CPVC price increases, and the planned Q3 launch of Pex. Management's Q4 2026-27 target for trials and commercial readiness at the 40,000-metric-tonne CPVC resin plant, with full benefit expected from FY28, remains the principal stated operational timetable.