Astral: Volume Recovery and Margin Expansion

delivered a resilient Q1 FY27 performance despite a weak industry environment. Pipe volumes remained broadly flat, while plumbing revenue grew 10.1% YoY, indicating better realisations and continued market-share gains. Consolidated revenue increased 15.9% YoY to ₹1,578 crore, while EBITDA grew 25.8% to ₹244 crore, taking the EBITDA margin to 15.5% from 14.3% a year earlier. The plumbing segment remained the key strength, with EBITDA margin improving to 18.9% from 16.4%, despite industry volumes declining around 9–10%. More importantly, pipe volumes increased around 40% YoY in July, supported by dealer restocking and improving demand, providing an early indication of a stronger second quarter. Another important growth driver is Astral’s 40,000 MT CPVC resin plant, which is expected to be ready by December 2026, with trial runs planned in Q4 FY27. Management expects the full benefits from FY28, including higher CPVC pipe and fitting volumes and margin improvement. The captive resin facility should also reduce import dependence and currency exposure.