Astral is positioned for borderline exclusion from the MSCI index during the February rejigging, with the announcement made today at 3pm. The potential exclusion carries significant financial implications for the company and its shareholders.

MSCI Index Exclusion Details

The MSCI February rejigging presents a challenging scenario for Astral, with the company facing borderline exclusion from the index. This development was announced today at 3pm, providing clarity on the company's index positioning.

Financial Impact

The borderline exclusion from the MSCI index represents a substantial financial impact of USD 161 million, which translates to Rs 14.7 billion. This exclusion could influence institutional investment patterns and fund flows related to the stock.

Market Implications

MSCI index changes typically affect institutional investment decisions, as many funds track these indices. The borderline nature of Astral's exclusion suggests the company was close to maintaining its index position but ultimately fell short of the required criteria for inclusion in the February rejigging.

Astral Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, following Board of Directors approval in their meeting held on February 5, 2026. The results were submitted to BSE Limited (Scrip Code: 532830) and National Stock Exchange of India Limited (Symbol: ASTRAL) under Regulation 33 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Board Meeting and Regulatory Compliance

The Board of Directors meeting commenced at 3:00 p.m. and concluded at 3:45 p.m. on February 5, 2026, where they considered and approved the unaudited standalone and consolidated financial results. The results were reviewed by the Audit Committee and approved by the Board of Directors, with statutory auditors SRBC & CO LLP providing limited review reports for both standalone and consolidated financials.

Standalone Financial Performance

The company's standalone operations demonstrated steady growth in Q3FY26. Revenue from operations increased to ₹13,816 million compared to ₹12,705 million in the corresponding quarter of the previous year. Net profit reached ₹1,268 million for Q3FY26, compared to ₹1,259 million in the same period last year.

Consolidated Results and Performance

Consolidated financial results reflected the company's expanded operations through subsidiaries and joint ventures. Revenue from operations stood at ₹15,415 million for Q3FY26, representing growth from ₹13,970 million in the previous year. Consolidated net profit reached ₹1,077 million for the quarter.

Segment-wise Revenue Performance

The company operates through two main business segments with distinct performance metrics. The plumbing segment, including pipes & fittings, water tanks, and bathware, generated revenue of ₹10,720 million in Q3FY26. The paints and adhesives segment contributed ₹4,695 million to quarterly revenue.

Exceptional Items and New Labour Codes Impact

The company reported exceptional items of ₹165 million during the quarter, attributed to the implementation of New Labour Codes by the Government of India on November 21, 2025. This one-time provision for employee benefits resulted from the consolidation of multiple existing labour legislations into four unified Labour Codes, requiring immediate recognition under Ind AS 19 accounting standards.

Strategic Acquisitions and Subsidiary Updates

Astral Limited completed several strategic acquisitions during the period to strengthen its market position. The company acquired 100% equity shares of Al-Aziz Plastics Private Limited for ₹330 million with effect from April 1, 2025. Additionally, the company acquired remaining 20% equity shares of Astral Coatings Private Limited for ₹750 million and remaining 5% equity shares of Seal IT Services Limited, UK for GBP 0.40 million.