Shares of plastic produce Astral Ltd fell six percent in trade on Tuesday, August 12, as its earnings show for the quarter ended June disappointed investors and brokerages decided to 'wait and watch' for further changes.
For the quarter ended June 30, 2025, Astral’s net profit stood at Rs 81 crore, marking a 32.7 percent drop from Rs 120 crore recorded in the same period last year. Revenue from operations came in at Rs 1,361.2 crore, down 1.6 percent from Rs 1,383.6 crore in the year-ago quarter.
During its earnings call, Astral said demand remained subdued in the June quarter, while fluctuations in PVC prices led to inventory losses and pressured realisations. The management added that PVC prices have begun to stabilise since the start of the September quarter, alongside signs of improving market conditions.
At 9.34 a.m., shares of the firm were quoting Rs 1,299, down six percent in trade on the NSE.
Jefferies maintained a 'hold' rating with a target price of Rs 1,565 per share. Q1FY26 results missed estimates across the board, with consolidated sales at Rs 1,360 crore and operating profit margin at 13.6 percent. Margins contracted in both the pipes and adhesives segments, while reported PAT dropped 33 percent year-on-year.
Morgan Stanley kept an 'equal-weight' rating with a target price of Rs 1,489 per share. Revenue missed estimates due to flat volume growth and a 7 percent fall in realisation. Adhesive and paint revenue was in line with expectations, with paints growing 21 percent.
CLSA reiterated its 'hold' call with a target price of Rs 1,515 per share. Q1 EBITDA missed estimates as lower PVC prices hit both realisation and margins. Revenue fell 2 percent YoY with flat piping volumes and weak margins across segments.
The company said polymer and chemical prices stabilised in July, aiding a rebound. Future growth depends on a recovery in PVC prices, ongoing capex, anti-dumping duty enforcement, and inventory restocking.
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