ASTRAL LTD (NSE: ASTRAL) Q3 2026 Earnings Call dated Feb. 05, 2026
Corporate Participants:
Sandeep Engineer — CHAIRMAN AND MANAGING DIRECTOR
Hiranand Savlani — EXECUTIVE DIRECTOR AND CFO
Analysts:
Ritesh Shah — Analyst
Shravan Shah — Analyst
Sonali — Analyst
Shravan Shah — Analyst
Pujan Shah — Analyst
Keshav Lahoti — Analyst
Presentation:
operator
Good evening ladies and gentlemen and welcome to the Astral Limited Q3 FY26 earnings conference call hosted by Investec Capital Services Private Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ritesh Shah, joint Head of Research Analyst, Materials and Metcaps. Thank you.
And over to you sir.
Ritesh Shah — Analyst
Thank you Sopnali. Thank you everyone for joining on for abstract we have with us Mr. Sandeep Engineer, Chairman and Managing Director Mr. Engineer Executive Director and Mr. Sriraman Saulani, Executive Director and CFO. I’ll hand over the management for opening remarks post which we’ll have a Q and a session. Over to you Sandeep Bhaiav Hiranandbhai and. Congratulations on a good set of numbers for the quarter. Over to you sir. Thank you.
Sandeep Engineer — CHAIRMAN AND MANAGING DIRECTOR
Thank you Ritesh. Firstly I welcome all for this earning call of Q3FY26. As you all are aware the polymer industry has been passing through a volatile time and challenging times. Prices have been highly volatile, fluctuating and high range of uncertainties that prevailing. In spite of that as usual Astral is a company which always focuses on growth at the same time on profitability and which once again we have demonstrated in this quarter also by giving a 17% volume growth with 18.20% EBITDA margins. I’ll now take you through all our verticals. First taking through the pipe vertical the overall industry level demand has been fluctuating but Astral started getting benefit of decentralizations of plants and also taking market share in new geographies with the new plants and addition of a great number of product lines product portfolios.
As you are aware that SQL has spent 1400 crores in capex in last 4 years through all the verticals and now it is the time to utilize the same and generate the cash flow from all these expansion as communicated in the past we have not only increased the capacity but also increased our product basket in the last three to four years since its base is still low but it is giving a very good performance. Namely these product lines which are being growing at a good rate are water tank or vals vertical or fire sprinkler vertical or OPVC Pipe vertical or PTMT VALS vertical low noise product vertical Electrofusion fittings, verticals and some more verticals which we have added in the last three to four years.
They have also given us growth and a good margin. Our Hyderabad plant has started gearing up very well and now Kanpur plant is also started and has started generating revenues and growth. Both these plants have given us good growth in volumes and market share and they will continue to give us good growth in volumes and market share. Kanpur plant we commissioned first the water tank and then later on the pipes and we have got good response from the market. So we are also increasing its capacity on on a fast basis. Our CPVC project is going very well.
Our construction work has commenced and substantial construction work has been done. Machinery orders Complete machinery orders have been placed and we are expecting to have trial runs in Q by this Diwali around Q3 of the next fiscal and by Q4 of next fiscal the plant will be operational. So we are going as scheduled in our new project of CPVC and we will keep you updated on the progress. As you are all aware that Ashtel has never compromised in the quality front of all our products and that is the reason today ASTEL is enjoying highest domestic and international market share and international certification of all our products have been obtained.
I’m happy to let all of you know that recently we have got a DVGW certification from Germany for all our Electro Fusion product range. This certification is very important to not only sell product in India with certain projects but also a global trust has been established which will help us to export this product line. And this certification is also equally important for the selling of our fittings and pipes to the gas market. So this will open a door for the domestic project as well as international projects. In Q3 we have launched STP Pro in collaboration with an American company.
It is very energy efficient sewage treatment plant that converts wastewater into reusable or non portable water. Its design has been so robust that it is made from plastic tags and it is a corrosion free design. Very low maintenance and the running cost is also very low and you can remotely monitor these plants. So STP Pro caters to the residential and commercial and industrial usage in the STP segment. I’m happy to let everyone know that our PEX aluminum PEX machine is ready. Our team is there to take the final trials at the manufacturer’s head and the machine should be shipped to India in next couple of weeks and we would be launching this product in Q4.
By the middle or the end of. Q4 so we will be making packs, aluminum packs in India and launching it to the Indian market. In our bathware business, as communicated earlier, our product acceptance in new projects is increasing fast and our order book is also improving very fast day by day which clearly indicates that the coming time the business will also scale up to a good level and the acceptance of Astell bathware has been established and is growing at a fast pace by good customers which also clearly shows that the confidence of our product is greatly growing in the market. I am happy to inform that Q3 we were able to grow in our top line by 36.5% in our bathware segment.
We are also launching a couple of new product lines in bathware segment in coming quarter and coming one or two quarters. Adjust the business this quarter also we have a robust growth in this business by 14% with a very healthy EBITDA margin of 17.3%. We have expanded our business also in exports in Middle east and various other countries and we have our team and office which runs from Dubai to establish this this market and grow this market as a business. I would like to also brief you that the going on expansion of some of the chemistries at DH is also on and will be completed by this fiscal year.
So we will have certain product lines which we make in segregated plants at Kanpur and Ahmedabad will now be centralized at Daheb with a good capacity and fully automized plant with a cost effectiveness in the production in adhesive UK business. As we have always communicated that we passed through a challenging time in UK business and we took multiple actions to make these corrections. With a new CEO in place from India as well as a lot of corrections at the plant level for stocks, the inventories, the raw material correction, the purchase correction. So many of these corrections were taken place in last one and a half quarters.
So we have got a healthy growth in our top line by 16%. Yet the margins have been under pressure. The margins have shown from almost minus EBITDA to it has come to a flattish ebitda. But this quarter I would come back with a very good EBITDA number and a growth number and we will all communicate on this as the quarter ends. But we are sure the business has been online, has been on growth and will not only give growth but come back to a healthy EBITDA margin in US Also we have made certain structural changes, the manpower changes and we are seeing now very very positive growth in the US market and the same growth should continue and the margin improvement will continue at a more faster pace in the US Market.
Coming to the paint business we all know that there are challenges in paint business. But in paint business I would happy to inform that as we have been communicating and as we have been working hard in new markets, new geographies, we opened the best geography of Gujarat, Rajasthan and parts of Maharashtra. And we are making our south geography where we are present in Karnataka, Kerala and Tamil Nadu more stronger. And this has given us 21.6% growth in the paint business in the last quarter. And we are sure that this quarter will be equally good on our growth front and we would be as we have guided, we should be around the number of 20% or a little about 20% in our growth in our paid business.
We have certain challenges on the new businesses there. So we have to take on certain challenges and we also need to have a good amount of manpower which will rationalize in coming two or three quarters in all fronts with growth and the reduction of these cost as the growth comes by. Lastly I wanted to inform you that as a responsible organization we believe in environment, sustainability and governance. I’m very happy to inform you that recently our organization has for upgradation of our DGSI EST score from 48 to 60 against our industrial average of 33. With this I’m closing my remarks and I hand over to Hiranan Bhai for the financial performance of Q3 outlook and outlook for the rest of the year.
And I will be happy to answer whatever the queries you have in the question answer session. Thank you very much.
Hiranand Savlani — EXECUTIVE DIRECTOR AND CFO
Good afternoon everyone and welcome for the earning call of Q3FY26 result and press release are in front of you. So I just wanted to highlight the category wise number 5 sector. Last year was 990 crore rupees of sale. Again that this year is 1072 crore rupees of sale. Last year EBITDA was 183 crore. Again that this year is 195 crore rupees. Adhesive India operation last year 280 crore rupees of revenue. Again that this year is 319 crore rupees of revenue. EBITDA was last year 46 crore in Q3 and again that this year is 55 crore.
Adhesive UK had grown up from 77 crore last year to this year 90 crore rupees. Again the EBITDA of 0.5 crore this. Year it is 1 crore. So almost it’s a plettish Ebitda paint business. Last year it was 50 crore rupees. Now this year it is 61 crore rupees. So last year the EBITDA was 2 crore rupees. Again that this year is 4 crore rupees. So total EBITDA last year, sorry total revenue last year was 1397 crore rupees. Again this year it is 1541 crore rupees. And total EBITDA of last year Q3 231 crore. Again that this year is 247 crore. As you all know we always believing in two things. One profitable and consistency of growth and secondly gaining market share.
And I am very happy to share that this year also we have repeated in both this parameter. I am very happy to share that in this quarter also we have delivered a very healthy 17% volume growth with a very healthy EBITDA margins of 18.2% in our plumbing business. In spite of lot of challenges in this industry, we are continuously facing downward pressure on polymer since last three years. But now it looks that bottom is formed and polymer had just started upward journey which we are closely monitoring. The number which we have given to you is including the inventory loss of close to about 20 to 25 crore rupees because of the reduction in the PVC and CPVC prices.
ADC business in India is continuously growing as per the guidance of 15% kind of run rate and a healthy EBITDA of 16 17% paint business. As communicated earlier, we are continuously on the path what we have guided of 20% plus growth. So we have maintained this and on full year basis also we are confident that we will be able to deliver that thing. We all know that our numbers and cash flows were under pressure because we had spent sizable amount of close to about 1400 to 1500 crore rupees on capex in our existing business in last three years.
Post that the polymer prices started declining which gave us pressure on growth and the cash flow. But from here on you will see a good improvement in free cash flow. Also all our new verticals have started positive signs and we are confident that from next quarter onward you will see across the board growth and the improvement into the margin due to change in the labor code. Company has provided 16.5 crore rupees in Q3 which we have shown in the exceptional item and because of that our pet has reduced to that extent. Now Q4 has started with a good note and polymer price have started going upward and demand on ground has also started picking up.
So we are very confident that the guidance which we have given to you we are going to definitely achieve that thing. And we may be little better in Q4. That is what we initial January and February beginning is showing. But let us wait for the quarter end and then we will communicate the exit growth. Now I am opening up the floor for the Q and A session. Over to you moderator.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue. We have our first question from the line of Shravanshah from Dalut Capital. Please go ahead.
Shravan Shah
Yeah, thank you sir. And congratulations on a good set of numbers. Particularly on the volume growth phase in the industry. So sir, you in your opening remarks has highlighted that Q4 now given the January looks better. But still just trying to understand in terms of double digit plumbing volume growth that we have given at 12.3% we have already done. So can we. Can we look at kind of of 13, 14% kind of growth for the entire full year?
Sandeep Engineer
Definitely more than that. Can you. Can you. Is it. Is it fair to to say any. Any number closer to a 15% so. See it is too early to say. But I can say the the beginning of the January until February today we are better than the Q3. Okay. Okay, great. And and then going forward also for next couple of years that previously also we said that double digit growth that that stand remains intact. Definitely. Because we have already communicated that our CPVC plant is going to come next year. And then the growth trajectory will be completely changed and we will unlock our strategy for the growth. Once our plan this you can say the trial runs get over. We will communicate that strategy to you. So definitely we are confident that double digits should not be a problem to us.
Shravan Shah
Hello. Hello. Hello. Hello. I think you can go to the if it is lost.
operator
Thank you. We have the next question from the line of Sonali s from Jeffries. Please go ahead. Sir.
Sonali
Thank you for the opportunity and congratulations on a great volume growth. So my first question is certainly the volume growth has been very good last quarter this quarter as well as well as your commentary on January and February. So can you help us understand this sectors exactly have you know, are giving you good traction for this kind of a volume growth. What has changed versus the same period last year?
Sandeep Engineer
I think all sectors are doing equally well for us. It is not one particular sector I Think CPVC is also doing good numbers for us. Even PVC traction has been good and lot of new product line additions that we have made in the last couple of years have now matured and are moving sizably well in the market. So although all the verticals I can say in the division are firing only then we are giving right now since the last two quarter we are giving industry leading growth kind of a number.
Sonali
I meant either B2C or B2B. Has infrastructure come up or recognize government?
Sandeep Engineer
Government spending has been muted. So government side obviously that spending has not come. So B2G side is very less and B2B and B2C both businesses are doing good because project sale has also been good and retail sale has also been good.
Sonali
Great. So my second question is regarding PVC price. Now I understand it’s very difficult to you know really estimate the even qualitatively or directionally where PVC would go from here. But just want to understand from the channel perspective have they started restocking because PVC is going up or are they still in a weight and what situation?
Sandeep Engineer
No, no. Restocking has been there. Restocking has been there. And do we expect this PVC to stabilize considering that ADD is not. I think, I think more, more or less PVC another maybe one or two rupees up move maybe there but largely then it will stabilize around these levels. Great sir. And lastly CAPEX guidance. I think we have given the CAPEX guidance for full year around 350 crore again that we have utilized so far. 290 crore rupees in nine months.
Sonali
Understood. So could you remind us of your full year guidance once again on volumes, revenue margins etc.
Sandeep Engineer
We we have given double digit guidance for volume and we are already 12 13% in nine month basis and EBITDA margin on polymer we have given close to between 16 to 18 range and adhesive and paint we have given between 12 to 14% margin.
Sonali
Got it sir. Thank you very much and all the best to the team. Thank you.
operator
Thank you. We have the next question from the line of Shavan Shah from Dollar Capital. Please go ahead.
Shravan Shah
Yeah, thank you sir. Sir, given that also you, you can also confirm that from 1st January 7 rupees PVC price hike. And Saraj also mentioned that 1 or 2 rupees more price I can further come and then stabilize. So let’s assume that the it comes or whether it doesn’t come and this 7 rupees stays as it is the hike so broadly someone has to has to look at for this quarter how one can look at in terms of QQ price increase or realization increase for us and whether this seven rupees has been passed on to the customers.
Sandeep Engineer
I think out of 7 rupees we already pass on 5 rupees and this week and we are going to pass on the balance to rupees also. So majority you can say we have passed on to the market.
Shravan Shah
Okay, got it. So. So. So. Okay. So based on that broadly and in terms of the product mix, the 4Q relatively has a slightly better CPVC share versus a 3Q. That way one can look at so trying to understand that the kind of realization growth for the fourth quarter.
Sandeep Engineer
Like historically you see the Q4 is always at the peak in terms of volume. In terms of margin both. So we we will continue this trend in this year also.
Shravan Shah
Okay, got it.
Sandeep Engineer
So. So. So that is there is a possibility that we can even touch the kind of the. The upper band of the margin 18%. That way one can look at almost. This quarter also we are close to that only. So even Q4 will be better because some some inventory gain may happen in Q4. Yeah. And sir Pathware now has that stage came where we now can look at in terms of the EBITDA margin also it start contributing like pathway is club. With the pipe business. And in the bathware factory. Both products of plumbing as well as bathware is manufactured. So now it is very difficult for us to segregate the EBITDA level in the bathware category. So that is why we are clubbing with the plumbing only. Earlier this brass ring and all was not manufactured in the same plant. But now because we were having the ideal capacity. So we started manufacturing that brass ring. But largely we are not losing much money in the bathware business. It is at a break even point. So from next year onward it will start contributing to the EBITDA level also.
Shravan Shah
Yeah. And lastly Too on the UK sir has has mentioned that from Q4 we will start seeing a growth and on the margin itself. But directionally for FY27 if one has to look at UK business how at the margin level one can look at. And the paint this quarter has done a decent kind of a 6.5% kind of a margin EBITDA level. So can we start now seeing a 8.9percent kind of a margin from for FY27 onwards.
Sandeep Engineer
So like NSU UK we are expecting a minimum a higher single digit growth minimum. Because now also growth is good. The last quarter also growth was there 16% kind of growth was There and similarly in the margin front also we are expecting a single digit, maybe mid single digit or maybe higher single digit margin minimum. But because we have just recently done lot of correction. So we don’t want to jump in and give the higher guidance. But our expectation graph is high. So definitely next year the both front we are going to perform well in Ukraine.
But keep finger crossed because after doing lot of correction we have to give some time and then only we can expect the result. So let us wait for one or two quarter and if required we will change our guidance also in the coming time.
Shravan Shah
Yeah. And as far as. Yeah, yeah. So what was your other question? Yeah sir, lastly I was saying that the CPVC backward integration. I think last time we said by Q2FY27 we will start. But now we said that the trial run will happen and from Q4FY27 the production will start. So just trying to understand.
Sandeep Engineer
Q3 next fiscal the trials will happen and you for next discount the plant will be regularized and this is only.
Sandeep Engineer
Okay, got it sir. Thank you. You will see the commercial production. Yeah. So main volume contribution actually will will start from the FY28 onwards. FY28 full, full contribution will be there.
Shravan Shah
Okay. Okay. Okay. Got it sir. Thank you. And all the best sir.
operator
Thank you. We have the next question from the line of Pojensha the Molecule Ventures. Please go ahead.
Pujan Shah
Hello. Yes. Yes, you are audible. Yes.
Sandeep Engineer
Yes sir.
Pujan Shah
The first question pertains to the PVC. So understanding the current scenario dynamics. And we are also hearing out that there is a rebate forego from Chinese government which ultimately inch up the prices. But do you feel that before that that would be a severe imports been coming out at a lower prices which would ultimately impact the current realization.
Sandeep Engineer
No, right now there are no major low price imports coming in. Majority of the Chinese quotations are also around the 680 to 690 level. Some are even at the 700 level. And Formosa has not given the prices this month. They might give the prices next month only. So I think largely PVC import. PVC should get be around the $700 mark. And majority of the low cost material that was supposed to come in. Most of that has come in in January and February. So we don’t see further low cost materials coming in much.
Pujan Shah
So just want to understand the in ship is getting pricing increasing is due to first the shutdowns in certain regions or it is more linked to the rupee rupee cy or rupee dollar thing.
Sandeep Engineer
There is lot of lot of Things at play. But since we are not a PVC resin manufacturer, very hard for us to articulate exactly why the PVC prices are going up. Because this is something the raw material manufacturer per se would be better people to answer. So what is our limited understanding is that that PVC manufacturers were bleeding. And you can see very well this into the numbers also because many of them are listed place. So from there also you can get a sense that how long any company will sell the product at a loss. So it has to happen. But sometime it may not happen as you plan. So it may sometimes delay also. But ultimately it has to happen because this kind of losses any manufacturer cannot sustain for a longer period. So now I think everybody has understood and now they will increase the price and still it is not that high price.
If you compare the price today also it is not that high.
Pujan Shah
Just to add this is are you positive on MIT thing which has been right now in the discussion for right now going on in the industry?
Sandeep Engineer
See, we are not sure about what is happening because again we have very limited visibility on all these items since these are raised by the raw material manufacturer then they are working directly with the government of India. So we have a very limited visibility on all these things. So it will be better that you resolve this question for the raw material manufacturer because we are in no place to answer all these questions.
Pujan Shah
Sure sir. My last question pertains to the OPEC vertical. So in the recent budget even we have seen in the last year there was a very muted spending from the government end. And we have seen that has been spillover effect in the OPEC segment. But now want to understand the first thing is in the budget there is there was no key announcement on the JGM part. And are we still positive for this OPEC vertical considering the muted demand scenario? And second the increasing competition we have.
Sandeep Engineer
One is we have got the some private orders so the machine has been running. We have not spent on high technology cost from abroad which all have done. We have in house work with our technical teams to jointly work with a few companies to develop this machine. It has given us a very low CAPEX level for putting these machine two machines and one more under manufacturing. So first is our CAPEX level of this machine has been very very controlled compared to others. We have no license from anyone. We have no obligations of giving any charges of technical fees which everyone have done with the foreign companies where all the machines have come.
And at the same time we have made the machines in such a flexible way that whenever they are available the machines can be used to manufacture alternate products. So for us this product line has been a good addition and our product have passed through every test. Our product has. ISI passes through every test. 1718 km lines laid by our machine our product. So for that. Realizing the challenges of Future and B2G products are a B2G business. We have always gone very cautiously in investing and putting these machines without no fringe thing. We know nothing attached to no strings added to it with technology fees or any other royalty fees or any tie ups that we cannot buy any other machine. So that way our OPVC has been a strategic decision and very rightly taken decision with our own in house technology. So just to add to your specific question of JJM, I think Government of India has allocated 67,000 crore rupees for JJM this year budget. It was not a frontline announcement but if you see the allocation is there last year also they will equally allocated the amount. But it is unfortunately the spending was only 17,000 as per the revised estimate of the budget. So actual spending doesn’t took place last year. So because of that there was no demand at all for this product. But now this year we are expecting that they have done this announcement or definitely government is going to spend that much of money and in that case everybody will get some portion of that business.
Pujan Shah
Secondly, all the states where OPEC has been in use and is presently also used. Estelle has got approval of all these states.
Sandeep Engineer
That was a quite detailed answer. I think I will join back in the case.
operator
Thank you. We have the next question from the line of Shalin Kumar from UBS India. Please go ahead.
Pujan Shah
Yeah, hi. Thank you so much sir. And congratulations on the good set of number. Sorry for again harping on the volume side sir but it’s. I just want to understand the trajectory because if I. Is it fair to assume that you know in November because we didn’t get the anti dumping duty and then there was a subsequent price correction in pvc so the November was pretty soft and you guided for 24 20% kind of on volume growth in October. So then if you’re achieving 17% then your December should be upward of 20%. So my question is is that is the kind of volume sustained in January as well 20% plus kind of thing.
That’s question number one.
Sandeep Engineer
So yeah, January it is more than that. What is you are expecting?
Pujan Shah
Okay, so it’s more than what you were saying. Okay. Okay, that’s. That’s good sir. Second sir, you made a statement. Just need to. If I hear it clearly that you said that in the quarter did we see 20, 22 crores of inventory loss?
Sandeep Engineer
Yes. So effectively that will add on to the this quarter. And again then we if the PVC price remains stable because we already seen a 10% improvement in month of January, ideally we should see some inventory gain in in this quarter. Logically yes. But we have to see how the volume is spreading out in the rest of the portion from today to 31st March, how the demand center. Based on that we have to effectively work out the pricing. We are balancing the volume growth also. And we are balancing the bottom line also. So very hard for us to comment on the inventory gain side right now. Because again we want to continue our. Volume growth trajectory Q4 also. So obviously we will take an aggressive stance in the market. Understood. But even assuming, let’s say everything remains same, that 22, 2022 crores which we had had a impact last in this, in the 3Q will reverse in 4Q. Right. If with that kind of volume your understanding is perfect. And that is what in initial comment also I communicated. So sir, basically then I see multiple margin levers for you. One, you know PVC prices shooting up. You’re coming from a base where you know you had inventory loss. So that’s go away. Then your Kanpur plant, as the occupancy ramps up, I believe that right now it may be at a low margin. Even I don’t know whether it’s a bit of a break, even not. But then that also the profitability should come back. So there is a good chance that you should beat your margin guidance handsomely. Keep finger crossed. Keep finger crossed. We don’t want to unnecessarily speculate the thing but we will try our best.
Pujan Shah
All right, sir, okay. No. Okay. Great sir, great. Thank you, sir. That’s it. That’s it. From my side.
Sandeep Engineer
Thank you.
Pujan Shah
Thank you.
operator
Thank you. We have the next question from the line of Rahul Agarwal from Ikigai Asset. Please go ahead.
Sonali
Hi, very good evening to everybody on the call. Sir, first question was on the CPVC regions, right? I’m assuming that last time we had this discussion on the last earnings call, I think you had mentioned it would be 100% captive usage and whatever you produce essentially gets used internally. So let’s say fourth quarter of fiscal 27, this will be more or less inter segment sale and will be cancelled off and whatever EBITDA we make on this will be part of the plumbing business segment, you know, increase in the margin. This understanding Correct?
Sandeep Engineer
Yeah. On a console basis, yes. But otherwise it is a separate company. We are having 80% stake in that. So to that extent we have to separately show.
Sonali
Right. Console. It will be line by line and then we’ll just have the margin sitting in the plumbing side. Right. That’s how it will count it. Okay.
Sandeep Engineer
Any. Any guesstimate or anything you would like to indicate based on your capacity. I think you spoke about 40,000 tons of first phase. How would. How you know how much incremental margin can the plumbing business actually enjoy because of captive reasons? I think it is too early to say unless until we are not received a few months performance. I think it will be too early. But I can indirectly you can see what other big people are manufacturing in cpv. That margin are already available in the public domain. So you can consider that we. We are on the contrary of the view our margin should be even better than that because we don’t have any marketing related course, we don’t have any other related code because ultimately it is a captive consumption. So our margin should be better than what the other players are.
And also obviously we are not here to, you know, enjoy huge margins on the CPUC business. Rather than that, our strategic aim is to. To make this record integration and gain market share. So we will also have our eyes on gaining higher market share in the CPVC vertical in the coming years.
Hiranand Savlani
Right, Got it. And. And this entire facility will be making only CPVC ravens. Right. If there is nothing else which is planned in the plan.
Sonali
Okay. Okay, perfect. And this last question, I mean given you’ve expanded quite a bit in terms of Capex new plants in terms of your distribution reach, you know, partnerships with dealer distributors on the side as well as on the piping side and branding. Anything we’re doing specifically which you want to highlight, which can actually aid which can you differentiate Astral versus somebody else.
Sandeep Engineer
We are coming out with a lot of. So we are coming out with a lot of new age products. So I will openly extend the invitation to everyone present on this call to visit us at Plumbex in Bangalore this year in April. And we are coming out with the next generation of plumbing and drainage products for India. So the products that will have the. They will be the next levers of the industry for the next two to three decades. So we have multiple new product lines and product categories being added to our arsenal in the month of April and next year. All these product lines will also add to the volume margin as well as the top line growth.
So we have a sizable new Product launches in the month of April in Plumbex in Bangalore and everyone is welcome to come and experience it. And even you must have come across our recent branding campaign of Bondite brand in which we engage other brand ambassador Ranveer Kapoor. And that is giving us a very good mileage in the market. And even after charging that cost also our margins are pretty decent into the adhesive business of India. So with this campaign and all our brand will be more visible in the market and we are expecting a sizable growth into that category also.
Sonali
Right, Perfect. Anything on the channel side, I mean is the any work happening on that side?
Sandeep Engineer
So that is a regular exercise every quarter, every year we are keep adding our dealers, we are keep adding our distributor and now particularly when we have added the new geography plant. So definitely that side also we are continuously adding. So now what has happened is that we are breaking away from the pack. Okay, so piping in India is largely everyone talks about CPVC and pvc. We are quickly breaking away from the pack. And with our new products that we are launching we are becoming more and more attractive to our channel partners and to the channel partners of the competitors also. So a lot of people are keen to join Astral because the type of products that we are now working on and developing, the new age products, our competitors are lacking in that. So it will obviously help us to gain more and more market share and more and more channel also.
Sonali
Right, got that. Thank you so much for answering my questions and congratulations for a good quarter and all the best.
operator
Thank you. We have the next question from the line of Tejas Pradhan from Citigroup. Please go ahead.
Shravan Shah
Yeah, hi sir, apologies but I think I missed the inventory loss number that you had mentioned at the start of the call. Can you highlight for the third quarter and nine months?
Sandeep Engineer
We said approximately 20 to 25 crore will be there.
Shravan Shah
Okay. For this quarter.
Sandeep Engineer
Right. And nine months what it would have been. Yeah, nine months. I don’t have a handy. You call me and maybe after this call I may find out that number also.
Shravan Shah
No problem. No problem. And secondly, on the new capacities in Kanpur and Hyderabad, what would be the utilization currently and how should we look at the ramp up over here in.
Sandeep Engineer
Terms of Kanpur Actually we had underestimated. And Kanpur is actually whatever small PVC capacity we had is already filled up. So actually Kanpur we are ramping up. The response to the Kanpur plant has been very good and our aggression also matches that. And with regards to Hyderabad I think should be around 50, 55% level should be there.
Shravan Shah
In fact Kanpur we have added the capacity in this quarter also. Right? Okay, understood. And lastly on the industry growth for the pipes, would you have a sense this quarter and versus priority?
Sandeep Engineer
I think industry as a whole is growing in the single digit level. I think if you do the average, I think it should be the single digit type. Volume growth should be there in industry.
Shravan Shah
Okay.
Sandeep Engineer
But I think lot of numbers are still pending. So I think it will be too early for us to comment on the industry growth. But yeah, one thing is clear in this number that the leaders are growing fast in this market. And the smaller size companies are facing a challenge in this market.
Shravan Shah
Sure, sure.
operator
Thank you. We have the next question from the line of Keshav Lahoti from HDFC Securities. Please go ahead.
Keshav Lahoti
Hi. Firstly congratulations on a strong set of numbers. So my first question is if I see your India operations. So that revenue as you highlighted is 319 crore. And EBITDA margin is 17.3%. So that implies a bit of 55 crore for India operations. But your director EBITDA for you know adhesive and paint combined is lower than 55 crore. In prestige you have reported it is 51 crore. While UK and paints are profitable. So why there is this mismatch? That means what I’m missing in this.
Sandeep Engineer
I have to check that individual number. You can call me after this call. But it should be 55 crore is adhesive. India adhesive. UK is 11 crore and paint is minus 4 crore.
Keshav Lahoti
Okay.
Sandeep Engineer
More or less. Paint in minus 4. What it is plus 4.
Keshav Lahoti
Yeah, understood. And you said adhesive and pain. The margin guidance is 12 to 14% for this year. The reason I am asking because so far nine month is 10.8%.
Sandeep Engineer
We have given the guidance but because of UK negative and the pain negative, we are not at that level. But this is what we have guided and we are trying to catch up in the last quarter maybe little short of that. I don’t know exactly what will be there. But now there is a lot of improvement. So we are expecting. And this quarter also we have charged money for this branding activity also. So because of that also some pressure was there on the margin.
Keshav Lahoti
Got it. It’ll help you. Thanks.
operator
Thank you. We have the next question from the line of Neha Beltrager Lamnuama Wells. Please go ahead.
Pujan Shah
Congratulations on great set of numbers team. Just a couple of questions from my end. You know how do we gauge that. How much is the secondary versus primary demand at this point of time in the system? We all Understand that PVC prices are going up and you know, channelists, he’s talking like you said. But how do we gauge that, you know, how much could be a primary demand? And so you did mention that, you know, demand on ground has picked up. Are we seeing. I think restocking is very minuscule. Okay, restocking is happening but it is. Also getting emptied at the dealer level. So secondary demand. We are tracking the secondary demand through our DMS. So secondary demand is looking bullish in Q4 versus Q3 also. So I don’t think many of the dealer distributors are sitting on a hefty inventory right now.
Sandeep Engineer
So Steha, you can compare that number in other way Also that December was good for the industry. We all did a very good number in December equally everybody has done a good number in the January also. So without, without the secondary sale or the ground demand, I don’t think that distributor will stock so much of inventory. So genuinely there is an improvement on the ground. You can check from your channel check also. But whatever we have the information from our people, they all are saying that the ground level also demand is very good.
Shravan Shah
That was pretty helpful sir. Sorry, one last, you know, bookkeeping cautions. Can you give the slit of resino as well as see the time is both in terms of revenues as well as margins.
Sandeep Engineer
So India 319. Sure. And UK 90. And same with margins. Margin 55 and 11.
Shravan Shah
Thank you so much sir.
Sandeep Engineer
One more thing I would like to add here is which everyone must know and understand is that we are giving growth but at the same time we are giving the best margins. That is very important. People have sacrifice use on margin but not substantial growth has been given. So that is very important. This whole industry looking to the volatility and the challenges must keep the margins in check. And that is what exactly all of the analysts should also benchmark and understand that keeping the margin intact we are given growth. That is very important.
operator
Okay, thank you. Thank you sir. We have the next question from the line of meat chat from Modilal ojwal Financial Services Ltd. Please go ahead.
Keshav Lahoti
Thank you sir for the opportunity. So first with a bookkeeping question, can you allude to the what kind of CPVC growth we had this quarter and nine months?
Sandeep Engineer
We are on the double digit growth only because see as you can say we are a major CPUC player. So if we are growing at this level, I think we are equally growing in cpvc. So we have not lost any market share in cpvc. In fact due to our aggression we. Have actually also gained Some market share of the last couple of quarters and we will continue this aggressive stance in CPVC and we will continue to try and take market share from other players before the plant comes in. So we have a sizable base.
Shravan Shah
Understood sir. Secondly, on this new product launch of HDT Pro, what kind of market opportunity do you elaborate? Like what kind of demand size? And can you throw some light on the opportunity size of this segment?
Sandeep Engineer
I think we are still evaluating that thing. We don’t have an industry exit number with us. Unless any of the analyst is having this number, please share it with me. So we don’t have an exit idea but we have a certain sense. So maybe in next quarter I will be ready with that number and I will definitely share with all of you. But today the government has made compulsion for locations where houses are built to have STP and not have the well to recharge the water back because this is a wastewater. And so this compulsion will increase this market to a substantial amount. And where you go to all developed countries, the STP market is a huge market. There are companies in Europe or many developed countries only making STPs and having a huge substantial turnover. So this will take a few quarters or some to understand and grow. But number wise we’ll be able to give estimation in one or two quarters.
Pujan Shah
Last year. One clarification regarding the UK business margin for the last year you mentioned around 0.5 crores. Was the EBITDA for last year versus 11 crores right now?
Sandeep Engineer
No, no sorry, 11 million. Not 11 crore. 11 million 1.1.
Pujan Shah
Okay. And for paint EBITDA loss this quarter was 4 crores versus loss of 2 crores last year. How it was last year?
Sandeep Engineer
2 crore Tropic was there.
Pujan Shah
Okay, got it. Thank you so much.
operator
Thank you. A reminder to all the participants, you may press Star and one to ask a question. As there are no further questions from the participants. That concludes the question and answer session. I now hand the conference back to the management for the closing comments. Thank you and over to you sir.
Sandeep Engineer
So thank you everyone for joining this call and looking forward to meeting you in person after Q4 and the fiscal end. And we are all geared up to work hard for the last quarter. And thank you very much once again.
operator
Thank you all the participants for joining this call and thanks Ritesh for organizing this call. Thank you.
Sandeep Engineer
Thank you everyone.
operator
Thank you management members on behalf of Investec Capital Services Private Limited that includes this conference. Thank you for joining with us today. And you may now disconnect your lines. Thank you.