Jefferies has maintained its Hold rating on Astral Ltd with a target price of ₹1,565 after the company reported an “all-round miss” in Q1FY26.
Astral’s consolidated sales stood at ₹1,360 crore, down 2% year-on-year, while operating profit margin (OPM) contracted to 13.6%, a decline of 190 basis points YoY and 440 bps sequentially. The pipes and adhesives segments both reported weaker margins. PAT fell sharply by 33% YoY to ₹81.1 crore.
The brokerage flagged that margins were under pressure across business divisions due to lower PVC prices, which hit realisations, and flat piping volumes that failed to provide leverage. Jefferies said the decline in profitability was broad-based, affecting both segments equally.
The brokerage will watch for a recovery in PVC prices and demand trends before turning more constructive on the stock.
Disclaimer: The above views are those of the brokerage. Investors should consult a certified financial advisor before making any investment decisions.
