Astral Ltd Q2 FY27 Results Analysis: Margin Compresses 330 bps, Revenue Jumps 26%
Astral Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 1,988.30 Cr (+26.05% YoY) and PAT growth of -5.64% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 05, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,988.30 Cr (+26.05% YoY) |
| PAT (Q2) | Rs. 127.20 Cr (-5.64% YoY) |
| EBITDA margin | 13.70% (-330 bps YoY) |
| EPS (Q2) | Rs. 4.73 (-5.78% YoY) |
Quarter Snapshot
Q2 FY27 revenue grew 26.05% YoY to Rs.1,988.3 Cr with both segments above 25% growth, but PAT to owners fell 5.64% as EBIDTA margin compressed ~330 bps YoY to 13.70% on a 37.89% rise in material costs. H1 operating cash flow turned negative (−Rs.68.0 Cr) on a Rs.308 Cr inventory build, and the margin trajectory moved away from management's FY27 guidance framework ahead of the pending September guidance-revision commitment.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue: "value/realization-led growth likely ahead of Q1's +10.1% plumbing print" (PVC up, MIP in force) | Ahead | Revenue +26.05% YoY consolidated; Plumbing +25.00% YoY | Played out |
| Margins: "rising-price quarter converts to realization gains plus potential inventory gains" | Expanding | EBIDTA margin 13.70% vs 17.00% Q2 FY26 and 15.46% Q1; plumbing EBIT margin down 164 bps YoY | Contradicted |
| Inventory swing a tailwind | Positive | Only +Rs.11.0 Cr P&L drawdown; COGS spiked; Rs.308.3 Cr balance-sheet build absorbed cash — P&L side | Contradicted |
| Paint EBITDA-positive from Q2 | First checkpoint | P&A segment result positive Rs.15.4 Cr (EBIT); vertical not separable | Partially |
| Adhesives margin recovery toward ~15% on RM softening | Recovery | P&A EBIT margin 2.61% vs 3.73% Q1, 6.82% YoY | Contradicted |
| FX neutral | Neutral | Exchange charge Rs.3.2 Cr vs Rs.8.1 Cr YoY | Played out |
| Watch: interim dividend; guidance revision; CPVC plant; GST challenge | Open | Dividend Rs.1.50/share approved; the other three not addressed in the filing — remain open for the call | Mixed |
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Management Guidance vs Delivery
| What management said | What happened | Verdict |
|---|---|---|
| Capex Rs.300–350 Cr (FY27) | Rs.318.4 Cr paid in H1 alone — H1 already inside the full-year band | On Track |
| Paint top-line 20–25% (FY27) | Paints & Adhesives segment +28.60% YoY (paint vertical not split) | On Track on the segment proxy |
| Paint EBITDA-positive from Q2 onwards; ~6–7% FY27 margin | P&A segment result positive Rs.15.4 Cr (EBIT basis) but margin 2.61%; paint vertical not separable | On Track directionally at segment level; exact metric not derivable |
| September guidance-revision commitment | Filing silent — open for the call | Too Early |
Key Investment Insights
Key Positives
- Consolidated revenue grew 26.05% YoY to Rs.1,988.3 Cr, accelerating from Q1's +15.9%
- Plumbing segment revenue grew 25.00% YoY and Paints & Adhesives grew 28.60% YoY
- Paints & Adhesives segment result remained positive at Rs.15.4 Cr (EBIT basis)
- Employee costs grew only 3.42% QoQ, below revenue growth
- H1 capex of Rs.318.4 Cr is already within the full-year Rs.300–350 Cr guidance band
- Interim dividend of Rs.1.50/share approved; trade receivables fell to Rs.392.5 Cr from Rs.475.1 Cr
Risk Factors
- EBIDTA margin compressed ~330 bps YoY to 13.70% as cost of materials grew 37.89% vs revenue growth of 26.05%
- PAT attributable to owners fell 5.64% YoY; even normalized PAT was −0.34% YoY
- H1 consolidated operating cash flow was negative Rs.68.0 Cr (CFO/PAT −0.27x) with free cash flow of −Rs.386.4 Cr
- Inventories rose Rs.308.3 Cr over H1 to Rs.1,425.6 Cr while cash fell Rs.485 Cr to Rs.405.3 Cr
- Paints & Adhesives EBIT margin fell to 2.61% from 6.82% YoY; segment result fell 50.80% YoY
- Subsidiaries contributed negative Rs.25.3 Cr to owners' PAT in Q2; Seal It Inc goodwill impaired again (Rs.9.5 Cr)
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.