Astral Ltd has postponed its plans to separate its chemicals division after investor feedback and industry momentum suggest the business needs to grow significantly before reconsidering. Meanwhile, its core plumbing and other segments report strong performance amid easing market volatility and strategic investments.
Astral Ltd has delayed plans to separate its chemicals arm after investor feedback and advice from independent advisers pointed to a simpler conclusion: the business is still too small to stand alone. According to Moneycontrol, management now believes the division would need to reach revenue of about ₹5,000 crore to ₹6,000 crore before the idea is revisited, a level executives said is several years away.
The company’s latest quarter nonetheless showed solid momentum in its core plumbing operation, which posted 10% value growth and an 18.9% EBITDA margin, even as the wider market shrank by about 10%, Moneycontrol reported. Hiranand Savlani, Astral’s chief financial officer, said a weak April was tied to the rollout of a new SAP HANA system that interrupted dispatches for 10 days, but performance improved sharply from May. July alone delivered 40% volume growth, and the company said it is still aiming for at least double-digit volume growth and EBITDA margins of 16% to 18% for the full year.
Management also pointed to improving industry conditions, particularly the introduction of a minimum import price on PVC, which Astral said has helped calm polymer price swings and encouraged distributors to rebuild stocks. The company said that if current conditions hold, value growth could outpace volume growth by about 10% this year, reflecting firmer realisations across the business.
Other parts of the group also posted strong numbers. Astral’s adhesives business in India grew 24.9%, helped by rural demand and online sales, while the UK operation rose 26% as margins improved to 4.9%. The paint business, built following the Gem Paints acquisition, expanded 48.7% and reached EBITDA breakeven, and the newly acquired DSS specialty chemicals unit reported revenue of ₹6.7 crore with a 12.9% EBITDA margin in its first quarter, according to the company and Moneycontrol. Astral also said its bathware segment grew 18.1% to ₹28.7 crore.
On the expansion front, the company said its CPVC resin plant remains on track for completion by the end of December, with trial runs and stabilisation due in the December quarter. A new valve facility is already operational, while aluminium PEX machines are being installed and should begin commercial production by the end of September. Astral said capital expenditure in the first quarter was ₹137 crore and full-year spending is expected to land between ₹300 crore and ₹350 crore.
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