Astral Limited , a pioneer in CPVC pipes and fittings manufacturing, has announced a strategic move to vertically integrate its operations by acquiring an 80% stake in NEXELON CHEM PRIVATE LIMITED, a chemical manufacturing company. This acquisition marks Astral's entry into the production of CPVC resin, a crucial raw material for its core business.

Acquisition Details

The Board of Directors of Astral Limited approved the acquisition of an 80% equity stake in NEXELON CHEM PRIVATE LIMITED for an initial cash consideration of Rs. 80,000 at par value. The company plans to invest up to Rs. 120.00 crores over time, with the total project cost estimated at Rs. 150.00 crores.

Strategic Importance

This move into backward integration is expected to bring significant benefits to Astral:

• Cost Optimization: By manufacturing its own CPVC resin, Astral aims to reduce production costs substantially.
• Margin Improvement: The company anticipates a notable enhancement in profit margins due to this vertical integration.
• Quality Control: Astral reports that its CPVC resin quality is on par with international standards, ensuring consistent quality for its products.

Project Timeline and Capacity

• Completion: The transaction is expected to be finalized within 2-3 months, with the capital structure to be determined in the next 60 days.
• Production Capacity: The facility is planned to manufacture 40,000 M.T. of CPVC Resin annually.
• Commercial Production: Astral aims to commence commercial production by Q2 FY-27.

About NEXELON CHEM PRIVATE LIMITED

NEXELON, incorporated in July 2023, specializes in the manufacturing of chemicals and chemical products, with a focus on CPVC resin production. The company is currently in the process of setting up its manufacturing unit and has not yet begun revenue generation.

Industry Context

This acquisition comes at a time when the polymer industry has been facing challenges:

• Q1 Performance: Astral reported a weak demand scenario in the polymer industry during this quarter.
• Price Volatility: The company experienced volatile polymer prices, with average PVC prices dropping approximately 14% year-over-year in Q1.
• Market Improvement: However, Astral notes that from the beginning of Q2, PVC prices are stabilizing, which is expected to help in achieving better realization and improving demand.

Financial Highlights

While the acquisition news takes center stage, Astral's recent financial performance provides context:

Outlook

Astral's move into CPVC resin manufacturing represents a significant step in its growth strategy. By securing control over a key raw material, the company is positioning itself for improved cost efficiency and potentially higher profitability in the coming years. As the polymer market shows signs of stabilization, this vertical integration could prove to be a timely strategic decision for Astral Limited.

Astral Limited , a prominent player in the Indian market, has announced its unaudited financial results for the first quarter of the fiscal year 2026. The company's Board of Directors convened on August 11, 2025, to review and approve the standalone and consolidated financial statements for the quarter ending June 30, 2025.

Board Meeting Details

The board meeting, which took place at the company's registered office, commenced at 14:30 and concluded at 15:40. During this session, the directors examined the financial performance of Astral Limited for the first quarter of the new fiscal year.

Financial Results

Astral reported a consolidated net profit of ₹811.00 million for Q1, down from ₹1,200.00 million in the same period last year. The company's EBITDA fell to ₹1,850.00 million from ₹2,140.00 million year-over-year, while the EBITDA margin compressed to 13.58% from 15.50%. Revenue saw a slight decline to ₹13,600.00 million compared to ₹13,840.00 million in the previous year's corresponding quarter.

Regulatory Compliance

In adherence to regulatory requirements, Astral Limited promptly informed both the BSE Limited and the National Stock Exchange of India Limited about the outcome of the board meeting. This communication was formally submitted through a letter signed by the Company Secretary, Chintankumar Patel.

Conclusion

The financial results show a decline in profitability and margins for Astral Limited in the first quarter of fiscal year 2026. Shareholders and interested parties are advised to review the comprehensive financial report, which should be available through official channels, for a more detailed view of the company's financial position and performance.