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.