Despite challenging business environment, Astral delivered healthy performance in Q2 FY26, achieving 20% volume growth and 15% value growth on a consolidated basis.
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IDBI Capital Report
Astral Ltd.'s Q2 FY26 result was above our estimates on key parameters. The management guided that overall demand was weak in the industry, and the second quarter was particularly challenging due to very high and extended monsoon, low government spending, and slow construction activity.
Despite challenging business environment, Astral delivered healthy performance in Q2 FY26, achieving 20% volume growth and 15% value growth on a consolidated basis.
The company's decentralized plant structure helped gain market share and resulted in strong growing demand, despite the overall industry weakness.
The substantial improvement in margins compared to Q1 was aided by an enhanced product mix and increased contribution from value-added products.
We have marginally increased our net sales/Ebitda estimates by 1%/8% and 1%/6% respectively over FY26E/FY27E. The stock had a sharp run up recently which limits potential upside from current level.
We downgrade the stock to Hold with a revised target price of Rs 1,695 (earlier Rs 1,603), assigning 60 times PER on FY27E.
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