Astra Microwave Products Limited — Q3 FY26 earnings call

Call held 13 Feb 2026

Management summary

Astra Microwave reported its best-ever Q3 FY26 performance with standalone revenue of ₹258 crores and a robust EBITDA margin of 30.9%. The standalone order book grew to ₹2,226 crores, supported by strong inflows and a healthy pipeline of ₹550-600 crores expected to convert this quarter. While execution delays were noted in some R&D projects, the company reaffirmed its FY26 revenue target of ₹1,150 crores and FY27 revenue growth of ~15%, driven by a strong focus on indigenous design and strategic partnerships.

Highlights

  • Q3 FY26 standalone revenue of ₹258 crores and PAT of ₹39 crores, representing best-ever performance.

  • EBITDA margin for Q3 FY26 expanded to 30.9% due to favorable revenue mix and strong order execution.

  • Standalone order book reached ₹2,226 crores as of December 2025, providing strong visibility for upcoming quarters.

  • Signed an MOU with Bharat Electronics for design, development, and manufacturing of advanced systems.

  • JV, Astra Rafael Comsys, performed exceptionally well, executing $18.19 million in Q3 and securing $80 million order book.

Concerns

  • Execution delays noted in some R&D projects due to inspection delays and approval processes.

  • High working capital intensity in the defence sector, though mitigated by advances and sovereign credit.

  • Export revenue has seen a dip in the last 2 years as the company shifted focus to higher-margin domestic products.

Key financials

2 periods

Q3 FY26

  • Revenue
    ₹258 Cr
  • EBITDA
    ₹80 Cr
  • EBITDA Margin
    30.9%
  • PAT
    ₹39 Cr

9M FY26

  • Revenue
    ₹668 Cr
  • EBITDA
    ₹165 Cr
  • EBITDA Margin
    25%
  • PAT Growth
    —
    YoY +6.3%
  • PAT Margin
    10.9%

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

₹2,226 Cr

as of 2025-12-31 quantified

Inflow this quarter

₹476 Cr

Execution

providing strong visibility for the upcoming quarters

Composition

Mix 2 sectors
  • Space sector 11.2%
  • Metrology and Hydrology sector 16.6%

Share of order book by sector· partial disclosure (27.8% of the book)

Pipeline

L1 awaiting loa

Contracts worth approximately INR550-600 crores likely to convert into firm orders by end of Q4 FY26.

Order book provides strong visibility and is in line with guidance, with significant inflows from defence, space, and metrology sectors.

Source: Prepared remarks

Capital allocation

high confidence
  • M&A Bharat Electronics Joint venture · Signed

    Strengthening indigenous design and production capabilities in key defence technologies.

    To strengthen our relationship and be a partner in Make in India programs, we signed an MOU with Bharat Electronics to work together on design development and manufacturing of advanced systems with a shared objective of strengthening indigenous design and production capabilities in key defence technologies.

Guidance & targets

Revenue

  • FY26 Revenue Revenue · FY26 · High confidence ₹1,150 crores
    Here, I would like to assure all of you, though we have achieved about INR600-plus crores revenue as of Q3, we are confident to reach our target of INR1,150 crores as a top line for the year.

    — S.G. Reddy

Order Inflow

  • FY26 Order Inflow Order Inflow · FY26 · High confidence ₹1,300-1,400 crores
    From a near-term perspective, we reaffirm our growth targets for FY '26, comprising approximately 10% growth in top line with a healthy PBT level and order inflows in the range of INR1,300 crores to INR1,400 crores.

    — S.G. Reddy

  • Next 4 years New Order Booking Order Inflow · next 4 years · High confidence ₹8,000-10,000 crores
    So we expect that this will translate into multiple large-scale programs, which even if I look at just 4-year scenario, MV Reddy and SG Reddy are very confident of giving us a number of around INR8,000 crores to INR10,000 crores worth of new order booking and concurrent sales happening to the tune of about INR7,500 crores plus over the next 4 years themselves.

    — Atim Kabra

  • Q4 FY26 Order Inflow Expectation Order Inflow · Q4 FY26 · High confidence ₹550-600 crores
    See, order book for this current quarter, that is in Q4, we are expecting, as I said, around close to INR550 crores to INR600 crores.

    — Management

  • FY27 Order Inflow Expectation Order Inflow · FY27 · High confidence ₹1,500-1,600 crores
    For the next year, for FY '27, we have a clear visibility to book order close to INR1,500 crores to INR1,600 crores around that.

    — Management

Revenue Growth

  • FY27 Revenue Growth Revenue Growth · FY27 · High confidence ~15%
    Further, as previously guided, we are on track to deliver revenue growth around 15% for FY '27 and an order book of around INR1,500 plus crores with a healthy bottom line.

    — S.G. Reddy

Order Book

  • FY27 Order Book Order Book · FY27 · High confidence ₹1,500+ crores
    Further, as previously guided, we are on track to deliver revenue growth around 15% for FY '27 and an order book of around INR1,500 plus crores with a healthy bottom line.

    — S.G. Reddy

  • FY27 Order Book Guidance Order Book · FY27 · Medium confidence ₹1,400 crores (+/- 25%)
    If you do the math, we have already given you a guidance of INR1,400 crores for the next year, plus/minus 25%.

    — Atim Kabra

  • FY27 Order Book Guidance (specific) Order Book · FY27 · High confidence ₹1,650-1,700 crores (+/- 15-20%)

    Previously ₹1,400 crores (+/- 25%) → ₹1,650-1,700 crores (+/- 15-20%)

    We are talking about INR1,650 crores, INR1,700 crores plus/minus 25% — 15%, 20% over there because the visibility is very high.

    — Atim Kabra

Sales

  • Next 4 years Concurrent Sales Sales · next 4 years · High confidence ₹7,500+ crores
    So we expect that this will translate into multiple large-scale programs, which even if I look at just 4-year scenario, MV Reddy and SG Reddy are very confident of giving us a number of around INR8,000 crores to INR10,000 crores worth of new order booking and concurrent sales happening to the tune of about INR7,500 crores plus over the next 4 years themselves.

    — Atim Kabra

JV Revenue

  • Astra Rafael Comsys FY26 Revenue JV Revenue · FY26 · High confidence ₹350+ crores
    Yes. For this year, I think it is likely to do about INR350-plus crores of top line.

    — Management

  • Astra Rafael Comsys FY27 Revenue JV Revenue · FY27 · High confidence ₹400+ crores
    And probably for the next year, it should be close to about INR400 crores plus. I don't have the exact figure for the year, but it should be in the range of INR400 crores plus.

    — Management

JV Profitability

  • Astra Rafael Comsys PBT JV Profitability · ongoing · High confidence 10-12%
    At PBT level, they earn close to about 10% to 12%.

    — Management

Market Opportunity

  • Addressable Market (TAM) Market Opportunity · next 4 years · High confidence ₹30,000 crores
    But overall, what we could see clearly an opportunity size of around INR30,000 crores in the next 4 years' time frame.

    — Management

Market Share

  • Company's Share of TAM Market Share · next 4 years · High confidence ₹8,000 crores
    And in that, as we mentioned, we can we are confident of bagging or maybe around INR8,000 crores for the execution in this particular front because in that, many of the programs, which are we are a single only approved qualified company for a few programs.

    — Management

What to watch in Q4 FY26

FY26 Revenue Target Achievement

Q4 FY26
Current ₹668 crores (9M FY26)
Target ₹1,150 crores

Why it matters

Verifying if the company meets its stated annual revenue target, indicating execution capability.

Here, I would like to assure all of you, though we have achieved about INR600-plus crores revenue as of Q3, we are confident to reach our target of INR1,150 crores as a top line for the year.

Risks & concerns

  • Execution challenges in private sector defence

    medium

    Private sector defence is still in its infancy, facing execution challenges related to supply chain activation and flawless execution.

    Management acknowledged

  • High working capital intensity

    medium

    Defence is a highly working capital-intensive industry, with high receivables and inventory, though mitigated by advances and sovereign credit.

    Management acknowledged

  • Project delays in R&D and complex systems

    medium

    Delays in R&D projects and complex system execution due to hindrances like inspection delays, approvals, and design review stages.

    Management acknowledged

Q&A highlights

2 direct
Opportunities in AMCA platform Partial
Yes. Amit, as far as the AMCA program is concerned, basically, our core expertise in basically in radar and the EWCs. And these are the major systems sensors, I would say, which we have the core expertise in AMCA. And these sensors are being dealt by DRDO separately. They are not in the scope of the EOI what being released.

Analyst sought clarity on specific product opportunities and financial impact within the AMCA program, a key defence project.

Asked by Amit Dixit

Export opportunities from trade deals Partial
But in fact, it is too early to say that how much we can get these opportunities and all. But yes, definitely, there is a good number of opportunities are there to work together to address the global market and as well as the Indian market.

Analyst inquired about the impact of new trade deals (EU-India FDA, US-India) on export potential, a new growth avenue for the company.

Asked by Amit Dixit

Execution pace and revenue growth targets Partial
Well, see, as far as the execution capability, we have built this capability. But most of these programs, what we are executing are R&D in nature and also the -- and domestic market. And in this kind of a market, where we have many other like this thing like hindrances like inspection delay and sometimes like there is a delay in approvals. So all these things are leading to some sort of project delays.

Analyst challenged management on perceived 'execution lethargy' given strong tailwinds and order visibility, questioning the 10-15% revenue growth targets.

Asked by Varun Bahl

Rafael deal (JV) opportunity size and inclusion in revenue targets Partial
Actually, as of today, in fact, we are not in the supply chain to be frank. But yes, some discussions are happening. We are discussing to indigenize a few components and subsystems in that. But it is too early to comment on the business size of this particular deal.

Analyst sought to understand the specific opportunity size for Astra Microwave from the 114 Rafael deal and if it's factored into long-term revenue doubling targets.

Asked by Vikas Singh

Need for equity capital for working capital Direct
Yes. I don't think we have to raise any equity capital as such to meet these working capital requirements. I'm sure that the bankers and other stakeholders will be more than happy to support the company.

Analyst questioned if high working capital intensity would necessitate equity infusion, which management clarified would not be needed.

Asked by Vikas Singh

Man-Portable SDR contract timeline Partial
It is reaching the final yes. Actually, the trials more or less are getting over now, but in the final stages. I think we'll get concluded maybe in a month's time from now.

Analyst sought an update on the Man-Portable SDR project, including trial completion and contract award timeline, a significant potential order.

Asked by Ketan Gandhi

Decline in exports and sustainability of margin increase Direct
But in the past, we used to take the orders, which have low margin of high value. But now we came out of that line as we wanted to focus more on the high-margin products and where our value addition is more. And that is the reason there is a dip in the revenue as far as the exports are concerned in the last 2 years.

Analyst questioned the sequential decline in exports and the reasons behind the improved margins, seeking clarity on product mix strategy.

Asked by Jyoti Gupta

Space vertical order split and Project Mausam opportunity Partial
Actually, this is serious -- like all these radars will be procured in a phased manner. We are expecting at least around 4 to 5 tenders to come. to cover the overall requirement of weather radars and other systems like wind profile radars, even weather stations and all.

Analyst probed for details on the composition of space orders and the timeline for the large Project Mausam opportunity to translate into order books.

Asked by Keyurkumar Vadaliya

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Detailed narrative

Strong Q3 FY26 Performance and Margin Expansion

Astra Microwave delivered its best-ever performance in Q3 FY26, with standalone revenue reaching ₹258 crores and PAT at ₹39 crores. The company's EBITDA margin significantly expanded to 30.9% for the quarter, driven by a favorable revenue mix and efficient order execution. For the first nine months of FY26, standalone revenue stood at ₹668 crores with an EBITDA margin of 25% and PAT growth of 6.3% year-on-year, reflecting robust operational capabilities.

Robust Order Book and Future Visibility

As of December 2025, Astra Microwave's standalone order book has surpassed ₹2,000 crores, reaching ₹2,226 crores, providing strong visibility for upcoming quarters. This includes ₹1,477 crores from defence PSUs and DRDO labs, ₹249 crores from the space sector, ₹369 crores from metrology and hydrology, and ₹130 crores from exports and deemed exports. The company also booked ₹476 crores in new orders during Q3 FY26 and expects an additional ₹550-600 crores to convert into firm orders by the end of Q4 FY26.

Strategic Partnerships and Indigenous Development

To strengthen its 'Make in India' initiatives, Astra Microwave signed an MOU with Bharat Electronics (BEL) for joint design, development, and manufacturing of advanced systems. This partnership aims to bolster indigenous design and production capabilities in key defence technologies. The company continues to focus on modules and subsystems for electronic warfare, radar systems, and space-based platforms, delivering products like Ashlesha, Rohini modules, and telemetry products.

Government Support and Industry Tailwinds

The defence sector is undergoing a structural shift, with the government prioritizing Indian companies focused on R&D and IPR. The Union Budget 2026-27 provides a strong thrust towards indigenous manufacturing and reduced import dependence, with defence allocation increasing by 15%. The space segment is also witnessing accelerated momentum with healthy budget allocations, creating significant tailwinds for domestic defence and aerospace players like Astra Microwave.

Long-Term Growth Outlook and Capital Management

Astra Microwave reaffirmed its FY26 revenue target of ₹1,150 crores and expects FY26 order inflows to be in the range of ₹1,300-1,400 crores. For FY27, the company projects approximately 15% revenue growth and an order book of ₹1,500+ crores. Management expressed confidence in achieving ₹8,000-10,000 crores in new order bookings and ₹7,500+ crores in concurrent sales over the next four years. While the business is working capital-intensive, it is mitigated by customer advances (20-30% for development/export orders) and Grade 1 Government credit, with no plans for equity capital raise.

Joint Venture Performance and Future Opportunities

The joint venture, Astra Rafael Comsys, performed exceptionally well, executing $18.19 million in Q3 FY26 and maintaining an order book of $80 million. The JV is projected to achieve ₹350+ crores in revenue for FY26 and ₹400+ crores for FY27, with a PBT margin of 10-12%. The company is also exploring new opportunities in the AMCA platform and global export markets, though specific financial impacts are yet to be determined.

New Technology & Market Expansion

Astra Microwave is investing in future-ready technologies aligned with Ministry of Defence requirements and growing export opportunities. The company has partnered with start-ups to participate in the evolving space ecosystem, combining its RF and microwave strength with advanced propulsion and satellite technologies. Discussions are ongoing regarding the Man-Portable SDR project, with trials nearing completion and bids expected by March. The company is also in the very initial stages of exploring pseudo satellite projects.

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