Astra Microwave

Astra Microwave Products Limited reported a strong Q2 FY26 standalone revenue of INR 213 crores, achieving an EBITDA of INR 46 crores, translating to a healthy margin of 21.7%, and a PAT of INR 21 crores. For the first half of FY26, standalone revenue stood at INR 410 crores, marking a 7.2% year-on-year growth. EBITDA for H1 was INR 85 crores with a 20.6% margin, and PAT grew by 13.5% year-on-year, underscoring the resilience of core operations.

As of September 30, 2025, the standalone order book reached INR 1,916 crores, with the consolidated figure at INR 2,209 crores, providing strong visibility for upcoming quarters. The order book is predominantly domestic, particularly in the defense sector, driven by build-to-spec projects ensuring strong profit margins. The company recently secured a significant INR 286 crores order from the Ministry of Defense for advanced communication systems for the Indian Air Force Special Forces, with expected sales of INR 41 million for the current year.

Management articulated an ambitious long-term vision, aiming to double the company's turnover (2x plus) in the next 3 to 4 years. Specific revenue targets include INR 1,400-1,500 crores for FY27, INR 1,650 crores plus for FY28, INR 2,000 crores for FY29, and INR 2,250-2,500 crores by FY30, driven by major programs like QRSAM, Uttam radars, and Su-30 upgrades. The ultimate goal is to transform Astra into a $1 billion company, leveraging its capabilities in radar, missile systems, and electronic warfare.

Astra continues to make progress in product development, particularly for AESA Virupaksha and Uttam radars. The company highlighted its 25-year engagement with India's space program, contributing to landmark missions through advanced RF and microwave subsystems. A new product line, maintenance of electro-optic products, has been recently adopted. The company is also building its own Astra SAT-1 satellite, planned for launch within 24 months, with a focus on revenue generation.

The company reported an improvement in operating cash flows during the first half of the year, primarily due to the realization of long-pending receivables from critical programs. This positive trend is expected to continue, leading to a significant reduction in working capital days. Gross margins for the current year are expected to be maintained at the delivered levels of 45-50%, with a positive bias for FY27 and FY28, supported by a favorable product mix.

The joint venture, ARC, is performing well, with expected sales of $42 million and an order book of $100-120 million by the end of FY26. Astra Rafael Comsys System Private Limited, another joint venture, reported an order book of INR 336 crores as of September 30, 2025, with expectations to reach INR 800-850 crores in the next 6-7 months and achieve sales of INR 250 crores for FY26. The company is also actively participating in RFPs and price negotiation committees, confident in achieving its year-end order booking targets.