This article first appeared on GuruFocus .
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Volume Growth:20% increase.
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Value Growth:15% increase.
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EBITDA Margin:Stable at 15-16% range.
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CapEx:INR 1,400 crore spent over the last four years.
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UK Business Growth:5% increase in top-line, 7.33% improvement in EBITDA.
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Bathware Business Growth:20% increase in the first half.
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Paint Business Growth:19% increase in H1.
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Plumbing Growth:15.75% increase.
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Adhesive India Growth:15.83% increase.
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Adhesive UK Growth:5.22% increase.
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Paint Growth:17.08% increase.
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Bathware Growth:13.84% increase.
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Warning! GuruFocus has detected 2 Warning Sign with BOM:532830.
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Release Date: November 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Astral Ltd ( BOM:532830 ) reported a 20% volume growth and 15% value growth, demonstrating strong performance despite industry volatility.
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The company has successfully decentralized its plants, leading to increased market share and demand for value-added products.
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Astral Ltd ( BOM:532830 ) has invested INR 1,400 crore in CapEx over the last four years, which is expected to generate significant cash flows and growth.
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The Hyderabad and Kanpur plants are ramping up production, expected to contribute positively to future volumes.
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The UK business has shown improvement with a new CEO, achieving a 5% top-line growth and a 7.33% EBITDA improvement.
Negative Points
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The polymer industry is experiencing high volatility, impacting pricing and market conditions.
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Extended monsoon and low government spending have slowed construction activity, affecting demand.
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The UK business faced challenges in previous quarters, requiring management changes and strategic adjustments.
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The paint business is under margin pressure due to increased costs from opening new depots.
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New plants are currently operating at low utilization levels, incurring losses until they reach optimal capacity.
Q & A Highlights
Q: Can we expect a 17% growth in the second half of the year even if the ADD (Anti-Dumping Duty) does not come into effect? A: Hiranand Savlani, CFO, stated that the company has given guidance for double-digit growth and remains confident in achieving it. If the ADD is implemented, it would be a bonus, potentially leading to higher growth.
Q: What has changed between Q1 and Q2 to result in a 21% volume growth? A: Kairav Engineer, Whole Time Director, explained that product mix changes and increased market aggression contributed to the growth. The company has expanded its network and distribution, which helped improve volumes.
Q: How is the company managing cost savings, and what impact does it have on expenses? A: Kairav Engineer noted that ad spend is a small part of overall expenses. The company has implemented various cost-saving measures, but specific details are not publicly disclosed.
Q: What is the status of channel inventory levels, and how are they affected by geographical expansion? A: Kairav Engineer mentioned that channel inventory levels are currently low, and geographical expansion has not significantly impacted inventory days. Distributors maintain certain inventory levels due to trade discounts and schemes.
Q: How does the company plan to address the volume-value gap in the second half of the year? A: Kairav Engineer stated that the reduction in the volume-value gap depends on the implementation of ADD. If ADD is enacted, polymer prices may rise, reducing the gap. The company has already seen a narrowing of this gap in the last quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
