Astra Microwave

Astra Microwave reported a strong start to FY26 with a stand-alone top line of INR197 crores, marking a 28.1% year-on-year growth. The company noted an increase in other profit margins, indicating the strength of its core business. This performance highlights the significant transformation occurring within the Indian defense sector, driven by government initiatives to strengthen domestic manufacturing.

The stand-alone order book currently stands at INR1,891 crores, providing strong revenue visibility for upcoming quarters. In Q1 FY26, the company booked INR137 crores in orders. Additionally, INR123 crores in orders were secured in July, bringing the total booked for FY26 to INR260 crores as of August 14, 2025. Management expects to book an additional INR1,100 crores by March 2026, targeting a total FY26 inflow of INR1,300-1,400 crores.

Astra Microwave is actively diversifying its technology and sector presence, with a focus on radar systems for defense and weather applications. The company has secured INR239 crores in orders from the space sector and established Astra Space Technologies Private Limited as a wholly-owned subsidiary. Significant investments are also being made in anti-drone systems, with participation in over 3 dozen RFIs, and in Metrological and hydrological sectors, targeting an order book of INR400-500 crores in the next two years.

The company's R&D team is committed to delivering at least three new radars this year, with a focus on lightweight, low-level, anti-drone, and ground penetration radars. Astra has successfully completed site acceptance tests for its first-ever developed photonics radar and is developing an engineering model for a handheld ground penetrating radar, expected to be completed in the next couple of months. The X-band seeker for missile programs is expected to be qualified by December 2025, with potential orders for 50-60 units in the next 2-3 years.

The joint venture, Astra Rafael Comsys Private Limited (ARC), has an order book exceeding INR400 crores and is projected to achieve a top line of over INR350 crores with a PBT of approximately 10% for FY26. While ARC experienced marginal profits in Q1 due to supply chain issues and customer acceptance delays, management is confident in meeting its yearly guidance. ARC is actively pursuing opportunities in tactical communication and electro-optics, with expectations of securing $100 million in orders by March 2026.

Astra has been involved in MMIC chips for over two decades, forming the backbone of its TR modules. The company boasts a portfolio of over 40 chips and is focused on upgrading them to compete in global markets, with a potential to sell chips exceeding $50 million over the next five years. Astra has signed one equity participation linked transaction with a chip development company and is pursuing another, aiming for global relationships to enable these sales.