Astral shares fall 7% after Q4 earnings miss street estimates across parameters

Shares of Astral Ltd. declined 7% on Tuesday, May 18, after their fourth quarter earnings were below estimates across parameters. This is the biggest single-day fall for the stock since August 2025.

How Did Astral Fare In Q4

Astral's net profit increased by 20% to ₹213 crore from ₹178 crore last year. The figure was well below street expectations, which had pegged the growth at 45%.

Revenue for the quarter was up 24% at ₹2,088 crore from ₹1,681 crore in the fourth quarter last fiscal. The Street had estimated revenue growth of 30%.

Operating performance of Astral though, was better than expectations, with Earnings before interest, tax, depreciation and amortization (EBITDA) increased 62% to ₹383 crore from ₹302 crore last year. The Street had estimated the figure to grow by 39%.

Its EBITDA margin expanded to 18.34% from 17.97% in the year-ago period. The street had pegged the figure at 19%.

Astral In FY26

For the entire financial year 2026, its net profit increased 3%, lower than expectations of 16%, while revenue growth of 13% was also below expectations.

EBITDA figure of 12% was lower than the 17% estimate, while margins sustained at 16% for the full year.

Plumbing business

Astral's plumbing business reported strong volumes, as they increased 24.2% in the fourth quarter to 84,014 MT from last year.

Meanwhile, FY26 volumes were up 15% to 2.63 lakh MT. The company said it witnessed good demand in plastic pipes in the fourth quarter and PVC demand declined 10%. The fourth quarter usually sees seasonally strong demand.

Brokerages

Brokerages CLSA and Jefferies both have "hold" ratings on the stock.

CLSA

CLSA has a price target of ₹1,475 apiece.

Piping volumes were strong at 24%, implying market share gains for Astral, CLSA said.

While piping profitability was robust, consolidated margins were weighed by adhesives, the brokerage said.

It expects more colour on growth guidance, ramp-up in capacity adds, traction of new products and roadmap for overseas adhesives business in its analyst meet.

Jefferies

The brokerage has a price target of ₹1,570 apiece.

Jefferies said the plumbing business, which was 70% of the sales mix, drove growth again. Plumbing volumes increased 24% to 84,000 MT.

Astral's adhesives EBIT margin narrowed by 500 basis points, although sales growth was strong at 22%.

Shares of Astral are now trading 5.2% lower at ₹1,464.9. The stock has given up nearly all of those gains for the year after Tuesday's fall.

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