Now Reading: Astral shares crash 12.4% on Q2 profit fall, margin squeeze
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Astral shares crash 12.4% on Q2 profit fall, margin squeeze
The Story in Brief
Astral shares hit a 52-week low of Rs 1,215.50 on Friday, 6 November, falling 12.4% after the company posted a 5.6 to 5.9% year-on-year decline in consolidated net profit to Rs 127.30 crore for the September 2026 quarter. Revenue rose 26% to Rs 1,988.30 crore, but EBITDA margin contracted to 13.1% from 16.3% a year earlier. The plumbing business EBITDA grew 6.9% while paints and adhesives EBITDA fell 19.2%.
Brokerages gave mixed views: JPMorgan has an overweight call with a target of Rs 1,635, CLSA has a hold at Rs 1,460, and Equirus Securities maintains a long rating with a target of Rs 1,833. Equirus cut FY27 and FY28 EBITDA estimates by 5% and 3% respectively on near-term margin pressure. Astral reiterated its FY27 guidance of double-digit volume growth and 16 to 18% margins, citing unprecedented growth in October, with price hikes completed in the third quarter.
Indian Opinion Analysis
Business Today and Business Standard both report Astral's Q2 profit decline and revenue growth, with near-identical figures. Business Today leads with the 52-week low and details broker downgrades (JPMorgan overweight, CLSA hold) and margin pressure. Business Standard leads with the 12.4% share price crash and adds Equirus Securities' long rating. Neither outlet positions the story as pro- or anti-government, as it is a corporate earnings report. The balanced reading is that while topline grew 26%, margin contraction and profit dip drove the sharp share fall. Both note brokerages expect a margin recovery in the third quarter, with Astral guiding for 16 to 18% margins in FY27. The timing of price hikes and volume growth in October are the concrete next steps to watch.
Coverage: 2 sources, 2 neutral
Sources (2): businesstoday.in (neutral report), business-standard.com (neutral report)
This brief was synthesised by AI from the 2 sources linked above, so one read covers every framing they carry. Methodology and corrections.
