Astral to acquire 80% stake in Nexelon Chem for ₹120 crore investment

PVC pipes and plastic products maker, Astral Limited, on Monday (August 11), said its board has approved the acquisition of an 80% equity stake in Nexelon Chem Private Limited and a further investment of up to ₹120 crore over a period of time.Nexelon Chem, incorporated on July 31, 2023, under the Companies Act, 2013, is engaged in the business of manufacturing chemicals and chemical products. The acquisition will enable Astral to manufacture CPVC resin, the main raw material for the company, aimed at cost optimisation and substantial margin improvement.

The transaction, which will be executed in cash, involves the purchase of shares at ₹80,000 at par value. The total investment, including the acquisition and additional funding, will be up to ₹120 crore, with the capital structure to be finalised within 60 days. The deal is expected to be completed within two to three months.

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Upon completion, Astral will hold an 80% equity stake in Nexelon Chem on a fully diluted basis. Nexelon is in the process of setting up its manufacturing unit and has yet to commence revenue generation.First Quarter Results

Astral reported a 32.7% year-on-year (YoY) decline in net profit at ₹81 crore for the first quarter that ended June 30, 2025. In the corresponding quarter of the previous fiscal, Astral posted a net profit of ₹120 crore. The company’s revenue from operations dipped 1.6% to ₹1,361.2 crore as against ₹1,383.6 crore in the corresponding period of the preceding fiscal.

At the operating level, EBITDA fell 13.8% to ₹185 crore in the first quarter of this fiscal over ₹214.4 crore in the corresponding period in the previous fiscal. EBITDA margin stood at 13.6% in the reporting quarter as compared to 15.5% in the corresponding period in the previous fiscal.

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Shares of Astral Ltd ended at ₹1,382.25, up by ₹6.95, or 0.51%, on the BSE.