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Astral Limited (ASTRAL) - Q4 FY26 Results
Plumbing delivering. Paints dragging. Cash flow exceptional.
Q4 Numbers
Q4 revenue: ₹2,089 Cr, 24.2% YoY, 35.5% QoQ - strong seasonal demand recovery exactly as management had guided.
Q4 EBITDA: ₹383 Cr, margin 18.33%, 37 bps YoY, 231 bps QoQ.
Q4 PAT to owners: ₹213 Cr, 18.8% YoY. Normalised Q4 PAT (ex-exceptional ECL provision): ₹217 Cr, 21.2% YoY.
FY26 Full Year
FY26 revenue: ₹6,569 Cr, 12.6% YoY. FY26 EBITDA margin: 16.16% - within and at the upper end of the 15–16% guidance.
FY26 PAT to owners: ₹537 Cr, 2.4% YoY reported. Normalised FY26 PAT: ₹553 Cr, 5.6% YoY - exceptional items (Labour Codes provision ₹165 Mn in Q3, ECL provision ₹61 Mn in Q4, goodwill impairment ₹41 Mn) suppressed the reported number.
Standalone PAT: ₹611 Cr, 7.9% - the ₹74 Cr gap to consolidated is entirely subsidiary drag, primarily UK.
The two-segment divergence
Plumbing (73.5% of Q4 revenue): Q4 revenue ₹1,534 Cr 25.1% YoY. Q4 segment margin 19.05%, 276 bps YoY. Operating leverage from Kanpur plant (operational Oct 2025), value-added product mix (CPVC, fire sprinkler, OPVC), and pricing discipline as polymer prices stabilise. FY26 Plumbing: ₹4,679 Cr 11.5%.
Paints & Adhesives (26.5% of Q4 revenue): Q4 revenue ₹554 Cr 21.9% YoY. Q4 segment margin 4.11%, −499 bps YoY. FY26 Paints margin: 5.47% vs 7.03% in FY25. UK recovery running slower than management's "substantially improved by FY26-end" guidance. FY26 Paints growth: 15.5% - missed the 20% target.
Cash - the standout
FY26 CFO: ₹1,117 Cr, CFO/PAT 209% - high earnings quality. FCF: ₹658 Cr, 676% YoY. Trade payables grew ₹341 Cr (favorable creditor financing) while receivables and inventory increases were moderate.
Capex: ₹459 Cr - exceeded the ₹300–350 Cr guidance range, driven by Al-Aziz acquisition, Nexelon CPVC resin plant, and facility upgrades. D/E: 0.04x. Cash balance: ₹890 Cr.
Exchange fluctuation losses were ₹325 Mn in FY26 vs ₹80 Mn in FY25 - forex volatility on UK/international subsidiary transactions is the finance cost to watch.
FY26 Guidance Scorecard
1) EBITDA margin 15–16% → 16.16% - Upper end met
2) FCF improvement → 676% - Confirmed
3) ₹1,500 Cr revenue by FY27 → ₹737 Cr added in FY26 - 49% of two-year target done
4) Paint growth 20% → 15.5% - Missed
5) Capex ₹300–350 Cr → ₹459 Cr - Exceeded
FY27 Watch
The ₹1,500 Cr cumulative revenue addition target needs ₹763 Cr more in FY27 - requiring 22.8% growth against FY26's 12.6%. That demands Paint segment acceleration and UK margin recovery. Management guides double-digit UK margin in FY27.
Hyderabad plant utilisation (15–20% currently) ramping adds operating leverage. Nexelon CPVC resin plant coming online provides backward integration for Plumbing margins. Forex cost drag (₹325 Mn FY26) needs stabilising.
Note: This is not investment advice.