Astral Shares Slide After Profit Drops in June Quarter

Astral Ltd shares were under pressure this morning, falling over 5% in early trade after the company reported a big year-on-year decline in quarterly profit.

For the April–June 2025 quarter, net profit came in at ₹81 crore, down almost 33% from ₹120 crore a year earlier. Revenue dipped slightly to ₹1,361 crore from ₹1,384 crore, but the bigger concern was margins. EBITDA dropped nearly 14% to ₹185 crore, with the margin slipping to 13.6% from 15.5% last year.

What’s Behind the Weak Numbers

The company pointed to lower PVC prices and rising costs as the main reasons for the squeeze. Even though sales volumes held up reasonably well, Astral wasn’t able to pass on higher input costs to customers. That, combined with a challenging demand environment in the construction and plumbing sectors, hurt profitability.

Earnings per share fell to ₹3.01 for the quarter, and there was also some slowdown in receivables turnover, which could put pressure on cash flows if it persists.

How the Market Reacted

The stock opened sharply lower, reflecting investor concerns that the margin pressure may not ease quickly. The reaction also shows just how sensitive the market is right now to signs of slowing profitability in manufacturing and building materials companies.

What to Watch Going Forward

Astral will need to manage costs tightly and work on improving efficiency to protect margins. Pricing strategy will be important, but so will watching raw material trends, which have been volatile. Ensuring faster collections could also help keep the balance sheet healthy.

The company remains a well-known name in the PVC pipes and fittings space, but the next couple of quarters will be key to showing whether this was a one-off weak patch or the start of a tougher phase.

Sources: CNBC TV18, Moneycontrol, Business Upturn, Astral Ltd filings