Astral Shares Plunge 9% After Q1 Results – Biggest Drop in 3 Years, 5 Key Reasons Explained

Astral Shares Fall Sharply After Q1 Results – Biggest Drop in 3 Years, Here Are 5 Reasons

The Astral Ltd shares underwent a significant sell off in the 12 th August where the stock dropped up to 9 percent in the intra-day stock trading. It is the largest decline a single day experience that the company has faced in the past three years. This is the first time in January 2022 that Astral shares declined greatly.

The sudden decline was following the official publishing of the April June (Q1) period of the company in the market. This action was met by negative response by investors and trading pressure was heavy. Analysts identify five key reasons of this sharp decline:

1. Sharp Decline in Profit

The net profit of Astral declined substantially in the June quarter and this affected investors who started selling the stock.

2. Weak Operating Margins

The EBITDA margin of the company declined to approximately 200 basis points with respect to the previous year to 13.6%. When compared to the previous quarter, the decline was even sharper since it was in excess of 400 basis points.

• Plumbing business margins fell by 150 basis points
• Margins of adhesives & paints dropped 280 basis points

3. Poor Performance in Core Business

Astral has a plumbing segment that generates most of its revenue of about 70 per cent of its total revenue. Nevertheless, this segment did not do well in the June quarter. Even though there was no change in volumes, the segment revenue declined by 6 per cent on a yearly basis.

4. Fluctuations in PVC Prices

The June quarter saw PVC prices dropping by 14 percent YoY as well as 4-5 percent. This resulted in losses in terms of inventory and reduced realisations which had an overall effect to the performance of the company. The management, however, said that prices of PVC have begun to stabilise since the onset of the September quarter.

5. Weak Demand in the Polymer Industry

The polymer market experienced poor demand in the first quarter, something that impacted on the sales of Astral. But the management revealed demand is turning around since July.

Also read : HUL Share Price Jumps 12% in 2 Days After Q1 Results – Buy, Sell or Hold?

Stock Performance

At the end of the market, Astral stocks had dropped 8.37 pct by close to 1,266. The stock has decreased by almost 23.3 percent so far in 2025.

Key Takeaway: The results obtained by Astral in Q1 were unimpressive, its margins were weak, prices of PVC were unstable and demand was poor and that is why investor confidence has been shaken. Although management has a high-recovery outlook towards the future quarters, the short-term performance is tempered.