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Astral Ltd

| Quarterly Financial Results Q3 FY 2025-26

NEUTRAL SENTIMENT

Report Source

⬤5th Feb 26

Summary : Astral Limited reports Q3/9M FY26 results with revenue growth, but profit impacted by one-time labor code provision and active acquisitions.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated Total Expenses Q3 FY26: 13,902 Million INR.
  2. Standalone Total Expenses Q3 FY26: 12,079 Million INR.
  3. Exceptional item (employee benefits provision) of 165 Million INR in Q3 FY26.
  4. Consolidated Revenue from Operations Q3 FY26: 15,415 Million INR.
  5. Consolidated Revenue from Operations Nine Months FY26: 44,801 Million INR.
  6. Standalone Revenue from Operations Q3 FY26: 13,816 Million INR.
  7. Standalone Revenue from Operations Nine Months FY26: 40,048 Million INR.
  8. Consolidated Plumbing Segment Revenue Q3 FY26: 10,720 Million INR.
  9. Consolidated Paints and Adhesives Segment Revenue Q3 FY26: 4,695 Million INR.
  10. Consolidated Total Assets Q3 FY26: 52,663 Million INR.
  11. Consolidated Total Liabilities Q3 FY26: 14,219 Million INR.
  12. Consolidated Plumbing Segment Assets Q3 FY26: 30,498 Million INR.
  13. Consolidated Paints and Adhesives Segment Assets Q3 FY26: 16,461 Million INR.
  14. Acquisitions of subsidiaries (Nexelon Chem, Al-Aziz Plastics, Seal IT Services, Astral Coatings).
  15. Both standalone and consolidated financial results are presented.
  16. Consolidated Net Profit Q3 FY26: 1,077 Million INR.
  17. Standalone Net Profit Q3 FY26: 1,268 Million INR.
  18. Exceptional item of Rs. 165 million is included in both standalone and consolidated results.

Corporate Overview

  1. India (Holding Company, Al-Aziz Plastics, Nexelon Chem, Astral Coatings, Astral Foundation).
  2. United Kingdom (Seal IT Services Limited).
  3. United States (Seal IT Services Inc.).
  4. Ireland (SISL (Bond It) Ireland Limited).
  5. Kenya (Astral Bipes Limited - Joint Venture).
  6. One-time increase in provision for employee benefits of Rs. 165 million due to new Labour Codes.
  7. Manufacturing of plumbing products (Pipes & Fittings, Water Tank, Bathware).
  8. Manufacturing of paints and adhesives.
  9. Manufacturing of CPVC resin and other chemical products (via Nexelon Chem Private Limited).
  10. Manufacturing of fittings and accessories for water, gas, electricity, and solar power (via Al-Aziz Plastics Private Limited).
  11. Sealant and adhesive products (via Seal IT Services Limited, UK and Seal IT Services Inc., US, SISL (Bond It) Ireland Limited, Ireland).
  12. Paints manufacturing (via Astral Coatings Private Limited).
  13. Formal and factual reporting of financial results and board approvals.
  14. Plumbing: Q3 FY26 Revenue from Operations of 10,720 Million INR (Consolidated).
  15. Paints and Adhesives: Q3 FY26 Revenue from Operations of 4,695 Million INR (Consolidated).
  16. Acquisition of 80% equity in Nexelon Chem Private Limited for CPVC resin manufacturing.
  17. Acquisition of 100% equity in Al-Aziz Plastics Private Limited for fittings and accessories.
  18. Acquisition of remaining 5% equity in Seal IT Services Limited, UK.
  19. Acquisition of remaining 20% equity in Astral Coatings Private Limited.

Risk Factors

  1. New labor codes impact profitability.
  2. Integration challenges for new acquisitions.
  3. Competition in diversified product markets.
  4. Fluctuations in raw material costs.

Key Drivers

  1. Acquisitions expand product portfolio.
  2. Revenue growth in core segments.
  3. Strategic investments in new ventures.
  4. Diversification into CPVC resin manufacturing.

Auditor’s Report

  1. Unaudited standalone financial results reviewed, no material misstatement found.
  2. Unaudited consolidated financial results reviewed, no material misstatement found, relying on other auditors for subsidiaries/JV.
  3. Reliance on review reports of other auditors for subsidiaries and a joint venture.

Board Commentary

  1. One-time provision for employee benefits due to new Labour Codes.
  2. New Labour Codes (Ind AS 19) resulting in Rs. 165 million exceptional item.
  3. Acquisition of 80% of Nexelon Chem Private Limited for Rs. 0.08 million.
  4. Acquisition of 100% of Al-Aziz Plastics Private Limited for Rs. 330 million.
  5. Acquisition of remaining 5% of Seal IT Services Limited for GBP 0.40 million (approx. Rs. 48 million).
  6. Acquisition of remaining 20% of Astral Coatings Private Limited for Rs. 750 million.

Corporate Governance

  1. Audit Committee reviewed and approved the results.

Management Discussion & Analysis

Future Strategy

  1. Diversification into CPVC resin and other chemical products.
  2. Expansion in fittings and accessories for various utilities.
  3. Consolidation of ownership in existing subsidiaries.

Operational Focus Areas

  1. Compliance with new Indian Labour Codes and accounting standards.

Performance Drivers

  1. Strategic acquisitions expanding product portfolio and market reach.
  2. Growth in revenue from operations across plumbing and paints/adhesives segments.

Risk Control Measures

  1. Evaluation and accounting for new Labour Codes impact as rules are notified.

Critical Risks

  1. Impact of new Labour Codes on employee benefit provisions.
  2. Integration challenges for recently acquired subsidiaries.