Astral shares rally 10% following Q1 results; Citi sees target price at Rs 1,900, Nuvama upgrades stock to 'Buy'

Astral posted a consolidated net profit of Rs 120.2 crore for the first quarter of FY27, up 51.8% from Rs 79.2 crore in the year-ago period.

Astral attributed the growth in profitability to higher utilisation at its new manufacturing plants, a shift towards higher-margin products and strong operational execution despite broader industry headwinds.

EBITDA for the quarter rose 25.8% year-on-year to Rs 244 crore, with EBITDA margins expanding by 120 basis points to 15.5%. While raw material price fluctuations caused the broader piping industry to contract by around 10%, Astral managed flat volume growth, continuing to capture market share.

What are brokerages saying?

Citi has maintained a Buy rating on Astral with a target price of Rs 1,900. The brokerage noted that Q1 performance demonstrated clear resilience, with plumbing margins expanding despite input cost fluctuations. Citi highlighted that channel restocking and strong demand recovery in July resulted in double-digit volume growth heading into Q2, while the CPVC resin integration project remains on track for Q4 FY27 completion.CLSA retained a Hold rating with a target price of Rs 1,490. While acknowledging that Astral continues to gain share in a challenging environment, CLSA believes the current valuation adequately reflects the near-term volume recovery, preferring to wait for sustained margin expansion in the Paints and Adhesives segment before re-rating the stock.

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