Astral Ltd Q2 FY27 Results Analysis: Margin Compresses 330 bps, Revenue Jumps 26%

Cofacto Research Published November 05, 2026 3 min read

Negative

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.

Quick Details

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

Read our full results preview.

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)