Target: ₹1,714
CMP: ₹1,480.50
Astral’s Q4 FY26 results were largely in line with analysts’ expectations for net sales and EBITDA, although the reported PAT fell short of projections. Following a relatively subdued performance in the first nine months of FY26, the company demonstrated a strong rebound in the fourth quarter across key financial metrics. Net sales rose 24.2% year-on-year to ₹2,090 crore, while EBITDA increased by 26.8% to ₹380 crore. The net profit reached ₹210 crore, representing a year-on-year growth of 19.6%.
For FY27, Astral has projected plumbing volume growth of between 10% and 15%. The company expects robust growth in its core sectors in the near term. Additionally, its backward integration plant for CPVC resin is currently under construction, with machinery installation expected in October. Management anticipates that this integration will enhance piping margins by approximately 200 basis points.
The management also noted that the three-year cycle of polymer deflation has reached its low point, leading to an inflationary shift. Price increases are anticipated following the reinstatement of a 7.5-8% import duty on polymers, effective July 1.
In light of these developments, earnings estimates have been revised slightly upward to align with company guidance. After the recent decline in the stock price, the valuation appears attractive at current levels. Consequently, the stock has been upgraded to a “Buy” rating, supported by a revised target price of ₹1,714, which applies a price-to-earnings ratio of 55x for FY28 earnings.
Published on May 21, 2026
