CLSA has maintained its Hold rating on Astral Ltd with a target price of ₹1,515 after the company’s Q1FY26 EBITDA came in 20% below its estimates due to margin pressure from lower PVC prices.
EBITDA stood at ₹185 crore, down 14% YoY, with revenue slipping 2% YoY. Piping volumes remained flat, while margins weakened across divisions. The brokerage attributed the earnings miss to an unfavourable product mix and weak realisations due to the fall in PVC prices.
However, CLSA pointed to signs of improvement in the ongoing quarter, with stabilising polymer and chemical prices in July helping Astral record 30% YoY growth in piping volumes and adhesives value.
It added that the company’s growth will hinge on external factors, including a recovery in PVC prices, resumption of capex, anti-dumping duty implementation, and inventory restocking.
Disclaimer: The above views are those of the brokerage. Investors should consult a certified financial advisor before making any investment decisions.
