Astral Ltd's shares tumble 8 pc on subdued Q1 results

New Delhi, Aug 12 Building materials and equipment company Astral Ltd's share price fell by nearly 8 per cent during the early trade on Tuesday after the firm reported a decline of over 30 per cent in its net profit for the first quarter of the current financial year (Q1 FY26).

At around 11:43 a.m., the company's shares were trading at Rs 1,282.70, down 7.16 per cent. The stock opened at Rs 1,310.10, falling significantly against last session's closing of Rs 1,381.60. The scrip further extended its loss following selling pressure to touch an intra-day low at Rs 1,275.0 (as of the above-mentioned time).

The stock fell 22.41 per cent so far this year and 33.79 per cent over the previous 12 months. Meanwhile, its 52-week high and low were, respectively, Rs 2,037.95 and Rs 1,232.30.

Astral's consolidated revenue decreased 1.6 per cent year over year to Rs 1,361 crore from Rs 1,383 crore. Over the year, its net profit dropped 33% from Rs 120.40 crore to Rs 81.10 crore.

In the April-June quarter, operating profit fell 14 per cent year-over-year to Rs 185.20 crore from Rs 214.20 crore. Over the year, its profit margin decreased from 15.5 per cent to 13.6 per cent, a decrease of 190 basis points.

Poor first-quarter performance was brought on by a decline in the market for polymer products; low PVC prices also reduced Astral's inventory and had an effect on realisation.

While margins remained constant, the EBITDA margin for the company's plumbing division decreased by 150 basis points from the previous year. Additionally, the Paints & Adhesives division experienced a 280-basis-point drop in margins.

In its earnings report, Astral emphasised that the June quarter's overall demand situation remained weak and that inventory losses and realisations were impacted by the volatility of PVC prices.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor