Astral Ltd: 77.6× P/E, ₹37,000 Cr Market Cap & a Pipe Dream Expansion Worth ₹120 Cr

1. At a Glance

Astral Ltd, India’s CPVC plumbing kingpin with a side hustle in adhesives, trades at ₹1,382 — a 77.6× trailing P/E that screams “priced for perfection”. The company just posted Q1 FY26 revenue of ₹1,361 Cr (–1.6% YoY) and net profit of ₹79 Cr (–33.7% YoY). Debt is low, margins are steady, and it’s about to splash ₹120 Cr to acquire 80% in Nexelon Chem to make its own CPVC resin — vertical integration 101.

2. Introduction

From humble beginnings in 1996 importing CPVC resin to becoming a household name in plumbing, Astral has mastered brand-building in a commodity business. Then it diversified into adhesives (by buying Resinova and Seal It) and started flexing in bathware, water tanks, and infrastructure pipes.

Today, Astral isn’t just selling you pipes — it’s selling the idea that pipes can be premium, with marketing budgets that rival FMCG brands. That’s why it’s still pulling a high double-digit P/E while the polymer demand cycle sulks.

3. Business Model (WTF Do They Even Do?)

• Plumbing Systems (72% of revenue): PVC, CPVC, lead-free PVC, drainage, agriculture, fire sprinkler systems, electrical conduits, bathware, water tanks.
• Adhesives (rest of revenue): Industrial and consumer adhesives, sealants.