Astra Microwave Products Limited — Q1 FY26 earnings call

Call held 14 Aug 2025

Management summary

Astra Microwave reported a strong Q1 FY26 with revenue growing 28.1% YoY to INR197 crores and a robust stand-alone order book of INR1,891 crores. The company secured INR137 crores in Q1 orders, with an additional INR123 crores in July, and is making strategic investments in space, MMIC, and anti-drone technologies. While the ARC JV faced minor Q1 delays, management remains confident in achieving its FY26 order inflow and revenue growth targets.

Highlights

  • Revenue of INR197 crores, growing 28.1% year-on-year, indicating a strong start to FY26.

  • Stand-alone order book reached INR1,891 crores, providing strong visibility for coming quarters.

  • Secured a significant INR135 crore order from DRDO in August 2025 for ground-based radar system upgradation.

  • Q1 FY26 order inflow stood at INR137 crores, with an additional INR123 crores booked in July, totaling INR260 crores YTD.

  • Wholly-owned subsidiary Astra Space Technologies established to focus on space business, with INR239 crores in space sector orders.

Concerns

  • Joint venture, ARC, reported marginal profits in Q1 due to supply chain issues and customer acceptance delays, shifting sales to the current quarter.

  • Delay in few tests of DRDO for Uttam Radar impacting the timeline for order induction.

Key financials

  1. Revenue ₹197 Cr +28.1%YoY

What they filed

Q1 FY27: revenue down 10.7%, net profit down 24.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue229 257 405 197 213 −7%258 +1%487 +20%176 −11%
EBITDA49 75 120 38 46 −6%80 +7%160 +34%33 −14%
Net profit24 39 75 13 21 −15%39 +1%105 +40%10 −24%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹1,891 Cr

as of 2025-08-14 quantified

Inflow this quarter

₹137 Cr

Execution

strong visibility for the coming quarters

Composition

  • Space Sector (product) ₹239 Cr 12.6%
  • Build-to-spec (contract type)
  • Astra Rafael Comsys Private Limited (JV) (entity) ₹400 Cr

Pipeline

L1 awaiting loa

Negotiations for INR150 crores and pipeline of INR100 crores expected in Q2.

The company maintains a robust stand-alone order book of INR1,891 crores, with significant new orders in Q1 and a strong pipeline for Q2, ensuring good visibility for future quarters.

Source: Prepared remarks · Q&A

Capital allocation

high confidence
  • M&A Astra Space Technologies Private Limited Acquisition · Signed

    To focus in space business in a bigger way and recruit skilled manpower and establish clean and assembly rooms for small-sized satellites.

    As you are aware, we have incorporated a wholly owned subsidiary by name Astra Space Technologies Private Limited recently to focus in space business in a bigger way and have already taken steps to recruit skilled manpower and to establish clean and assembly rooms for assembly and integration of small-sized satellites.
  • M&A Unnamed chip development company Equity participation · Signed

    Part of a leap strategy for semiconductor space and miniaturization.

    We have already signed one equity participation linked transaction with a chip development company and another one should be closing very soon.
  • M&A Unnamed Defense PSU SPV Joint venture · Announced

    To bid for a specific space tender, leveraging Astra's capabilities.

    And it was in recognition, I must mention, of our capabilities that one of the leading defense PSUs recently had formed an SPV with us to bid for a specific space tender.

Guidance & targets

Order Inflow

  • Total Order Inflow Order Inflow · FY26 · High confidence INR1,300 crores to INR1,400 crores
    For Astra, actually, we have given guidance of around INR1,300 crores to INR1,400 crores

    — Management

  • Additional Order Inflow Order Inflow · by March '26 · High confidence INR1,100 crores
    And we are quite confident to book another INR1,100 crores or so by March '26.

    — Management

  • ARC JV Order Inflow Order Inflow · before March '26 · High confidence $100 million
    As Mr. SG had mentioned, we are expecting close to $100 million worth of orders before March '26.

    — Dr. M. V. Reddy

  • Ground Penetrating Radar Orders Order Inflow · by March '26 · Medium confidence a few orders
    so that we are likely to book a few orders at least by March '26.

    — Management

  • SDR Radar Contracts Order Inflow · before March '26 · High confidence 3 major contracts, $100 million
    before March '26, I think we should have 3 major contracts should be in place and 3 contracts put together is close to approximately around $100 million.

    — Management

Revenue

  • Revenue Growth Revenue · year-on-year · High confidence 18% to 20%
    Yes, we are expecting growth of around 18% to 20% year-on-year.

    — Management

  • ARC JV Top Line Revenue · for the year · High confidence INR350-plus crores
    expected to do about INR350-plus crores of top line with a PBT of around 10% for the year.

    — S. G. Reddy

Profitability

  • Profit Margins Profitability · FY26 · Medium confidence maintain current year profit / slight improvement
    profitability also, we are trying to maintain this same profit, whatever we have given the guidance of the current year, because since we are focusing more on to the domestic business, and we are almost cutting down the BTP business, hence, our profit margins will still remain comfortable.

    — Management

  • ARC JV PBT Profitability · for the year · High confidence 10%
    expected to do about INR350-plus crores of top line with a PBT of around 10% for the year.

    — S. G. Reddy

Product Development

  • New Radars Delivered Product Development · this year · High confidence at least 3
    I'm laying much hopes on the promise of our R&D team that they will deliver at least 3 new radars this year

    — Atim Kabra

Order Book

  • Metrological/Hydrological Order Book Order Book · in the next 2 years · Medium confidence INR400 crores, INR500 crores
    We expect that in the next 2 years, we should have an order book in excess of INR400 crores, INR500 crores from this segment

    — Atim Kabra

What to watch in Q2 FY26

Uttam Radar Order Update

next 3-4 months
Current Delay in DRDO tests, no firm timeline for order induction.
Target Specific timeline or quantum of orders for Uttam Radar.

Why it matters

Uttam Radar is a significant project with large potential, and its induction timeline is crucial for future revenue visibility.

Maybe in next 3 to 4 months, I think we'll be in a position to inform you exactly on the Uttam.

Risks & concerns

  • Uttam Radar Order Delays

    medium

    Delay in few tests by DRDO for Uttam Radar impacting order induction timelines.

    Management acknowledged

  • Myanmar Project Confidentiality

    medium

    Details on Myanmar radar technology project are confidential, with updates expected in 4-5 months, indicating potential sensitivities.

    Management not addressed

  • ARC JV Q1 Performance

    low

    Marginal profits in Q1 for ARC JV due to supply chain issues and customer acceptance delays.

    Management acknowledged

Q&A highlights

4 direct, 2 evasive
Uttam Radar Order Timeline and Quantity Evasive
only time can tell. Maybe in next 3 to 4 months, I think we'll be in a position to inform you exactly on the Uttam.

Critical for future order book, but management cannot provide firm timelines due to external factors (DRDO tests).

Asked by Amit Dixit

Anti-drone Systems Potential Partial
I think the fact that in 6 months, we have participated in more than 3 dozen RFIs itself speaks volumes about the kind of potential which exists not only here but globally also.

Highlights a significant growth area for Astra, but specific market size or order potential remains qualitative.

Asked by Niraj Mansingka

X-band Seeker for Missiles Commercialization Direct
the discussions what we are having it, at least we are expecting more than 50 to 60 numbers in next 2 to 3 years' timeframe.

Reveals significant potential for a critical product (50-60 units in 2-3 years) despite confidentiality on specific missile programs.

Asked by Rupesh Tatiya

Air Defense Fire Control Radar (INR2,000 crore contract) Involvement Direct
Yes, we are there in this program, and we are part of this program where we supplied almost 50% to 60% of subsystems like TR modules in this program. So we are likely to get orders very soon by next couple of quarters.

Confirms Astra's significant role (50-60% of subsystems) in a large INR2,000 crore contract and indicates near-term order booking.

Asked by Rupesh Tatiya

SDR Trial for ARC JV and Bid Win Timeline Direct
ARC is qualified in the initial trials. The final trials are going to happen soon. And yes, we are confident of getting through those final trials also, and we will be in competition for the price bid opening.

Provides an update on a key JV project, indicating progress towards potential order wins after final trials.

Asked by Parag Bhatia

Myanmar Radar Technology Project Evasive
the other Myanmar is a bit of confidential. I do not want to give anything now at this stage. Maybe I think we may have to see for next at least 4 to 5 months, and I'll be in a position to answer your question on this.

Highlights a sensitive international project with potential, but details are withheld, suggesting either early stage or political sensitivity.

Asked by Parag Bhatia

Ground Penetrating Radar Opportunity Size Direct
we are expecting roughly around 100 numbers minimum what we can we are targeting every year. This is a handheld-based ground penetrating radar.

Quantifies the annual market potential for a new product, indicating a significant recurring revenue stream.

Asked by Rupesh Tatiya

2 min read 6 chapters

Detailed narrative

Q1 FY26 Performance Overview

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.

Robust Order Book and Inflow

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.

Strategic Diversification and New Opportunities

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.

Product Development and Innovation

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.

Joint Venture Performance and Outlook

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.

MMIC Chips and Global Ambitions

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.

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