Astra Microwave Products Q1 FY27: Revenue Falls 11%, Order Book Strengthens to ₹2,156 Crore

Astra Microwave Products Limited has outlined its Q1 FY27 performance, strong order book, defence and space opportunities, strategic initiatives and leadership transition in its August 2026 investor presentation.

The Hyderabad-based defence and aerospace electronics company reported a year-on-year decline in revenue and profitability during the June 2026 quarter. However, its order book remained strong at ₹2,156 crore as of June 30, 2026, while the company continues to focus on high-value defence systems, radar, electronic warfare, space electronics, telemetry and related technologies.

Astra Microwave Q1 FY27 Financial Performance

On a standalone basis, Astra Microwave Products reported revenue from operations of ₹176 crore in Q1 FY27, compared with ₹197 crore in Q1 FY26, representing a decline of around 10.7%.

EBITDA declined to ₹33 crore from ₹38 crore, while the EBITDA margin moderated to 18.8% from 19.5%.

Profit after tax (PAT) stood at ₹10 crore, compared with ₹13 crore in the corresponding quarter of the previous year. The PAT margin declined to 5.6% from 6.6%.

Standalone Q1 FY27 Financial Highlights

The company reported higher depreciation during the quarter at ₹12 crore compared with ₹9 crore in Q1 FY26. Finance costs stood at ₹11 crore against ₹14 crore in the year-ago quarter.

Consolidated Q1 FY27 Performance

On a consolidated basis, revenue from operations stood at ₹177 crore, down from ₹200 crore in Q1 FY26.

Consolidated EBITDA declined to ₹33 crore from ₹41 crore, with the EBITDA margin falling to 18.7% from 20.5%.

PAT declined 24% year-on-year to ₹12 crore, compared with ₹16 crore in Q1 FY26.

The consolidated numbers also benefited from ₹3 crore of share of profits from joint ventures during the quarter.

Order Book Remains a Key Strength

Despite the softer Q1 revenue performance, Astra Microwave continues to have a strong order pipeline.

The company’s standalone order book stood at approximately ₹2,156 crore as of June 30, 2026, compared with ₹2,141 crore at March 31, 2026.

During Q1 FY27, the company received orders worth approximately ₹173 crore and executed around ₹179 crore of orders.

The order book remains heavily focused on the defence and public-sector market.

Order Book Mix

As of June 30, 2026, the standalone order book was divided approximately as follows:

• Defence / Public Sector: 71.3%
• Space: 26.3%
• Exports: 2.0%
• Meteorological: 0.4%

The strong defence and space component gives Astra Microwave visibility across multiple long-term programmes.

Major Orders Received in Q1 FY27

Astra Microwave received several significant orders during the June 2026 quarter.

The major Q1 orders included:

The orders cover radar, missile and space-related requirements, highlighting the company’s exposure to India’s defence and strategic electronics ecosystem.

Production Accounts for Majority of Order Book

Astra Microwave’s order book is diversified across production, development, exports and AMC/service activities.

The order book split as of June 30, 2026 was:

• Production: ₹1,417 crore or 65.7%
• Development: ₹308 crore or 14.3%
• AMC / Service: ₹258 crore or 12.0%
• Export: ₹173 crore or 8.0%

The high share of production orders provides a meaningful execution pipeline for the company.

Defence Continues to Dominate Revenue

Defence remained Astra Microwave’s largest revenue contributor in Q1 FY27, accounting for approximately 80.4% of revenue.

The revenue mix was:

• Defence: 80.4%
• Space: 7.7%
• Exports including deemed exports: 5.0%
• Meteorological: 4.9%
• Others: 2.0%

The mix demonstrates the company’s strong dependence on defence while also highlighting opportunities to expand its presence in space, exports and meteorological applications.

FY26 Customer Revenue Mix

Astra Microwave generated standalone revenue of ₹1,155 crore in FY26.

The company’s largest customers and customer categories included:

• DRDO: 28.2%
• BEL and other DPSUs: 22.7%
• IMD / Meteorological Departments: 18.0%
• Exports: 11.9%
• ISRO / SAC: 6.4%
• Private customers: 3.0%
• Others: 9.5%
• BSF: 0.3%

The customer base includes major government defence and space organisations, providing Astra with exposure to long-duration strategic programmes.

Long-Term Financial Growth

Astra Microwave has delivered strong financial growth over the past several years.

Standalone revenue increased from ₹735 crore in FY22 to ₹1,156 crore in FY26.

During the same period, EBITDA increased from ₹87 crore to ₹324 crore, while PAT increased from ₹40 crore to ₹178 crore.

Standalone Historical Performance

The figures show a significant improvement in profitability over the four-year period, with EBITDA margin increasing from 11.8% in FY22 to 28% in FY26.

R&D Investment Remains a Major Focus

Astra Microwave continues to invest heavily in research and development.

The company spent approximately ₹58 crore on R&D in FY26, compared with ₹23 crore in FY21.

As of June 30, 2026, Astra Microwave had 701 R&D professionals, including:

• 96 employees with master’s degrees
• 9 employees with doctorates
• 100 employees with more than a decade of experience

The company’s R&D capabilities cover radar systems, electronic warfare, space electronics, antennas, RF and microwave technologies, telemetry and other strategic electronics.

Three Decades of Defence and Space Experience

Astra Microwave has more than 30 years of experience in radar, electronic warfare and strategic electronics.

The company has participated in India’s space programme for around 25 years and stated that it has developed:

• 35 radars
• 25 satellites
• 15 strategic programmes

It is also one of the private-sector companies in India with the capability to develop and supply GaN and GaAs MMIC products up to 40 GHz.

Its manufacturing and R&D footprint includes facilities in Hyderabad and Bengaluru.

Key Business Segments

Astra Microwave operates across several strategic technology areas.

Radar Electronics

Radar remains one of the company’s core businesses, serving defence and aerospace applications including surveillance, reconnaissance, target detection and tracking, missile guidance and air traffic control.

The company estimates that the Indian radar market could reach approximately ₹12,200 crore by 2033, growing at a CAGR of 20.62%.

Astra believes it is well positioned to participate in this opportunity through its existing technology capabilities and order pipeline.

Electronic Warfare

The company is also involved in electronic warfare solutions covering threat detection, secure communication, radar jamming and deception.

Astra estimates the Indian electronic warfare market could reach approximately ₹9,500 crore by 2033.

Its joint ventures and technology partnerships are expected to support its capabilities in electronic warfare, tactical communication and signal intelligence.

Telemetry

Telemetry is another important business area, with applications in aircraft, missile testing, UAV tracking and satellite communications.

The company supplies telemetry subsystems for platforms including the LCA Tejas and IJT aircraft.

Astra expects India’s defence electronics sector, including telemetry, to continue expanding as domestic manufacturing and defence procurement increase.

Space Electronics

Astra has been associated with India’s space programme and supplies RF components for satellites and launch vehicles.

The company believes India’s expanding space economy, satellite applications and government support could create significant long-term opportunities.

Astra Space Technologies Private Limited was incorporated in February 2024 to strengthen the company’s presence in the space sector. The subsidiary focuses on the manufacture and integration of satellite equipment.

Meteorology and Hydrology

The company also supplies solutions for meteorological and hydrological applications.

Its meteorological business includes equipment for measuring atmospheric parameters such as wind speed, direction, temperature, humidity and precipitation.

In hydrology, the company serves applications including irrigation planning, water-resource mapping, reservoir monitoring and water infrastructure.

Proposed Demerger of Space, Meteorology and Hydrology Businesses

One of the important strategic developments highlighted in the presentation is the proposed demerger of Astra Microwave’s Space, Meteorology and Hydrology business undertakings into a separate entity.

The Board has given an in-principle approval for the proposed demerger.

According to the company, the objectives include:

• Focused management attention
• Improved operational efficiency
• Tailored growth strategies
• Dedicated capital allocation
• Unlocking value for shareholders

The final structure, share exchange ratio and other terms will be decided by the Board after receiving the necessary reports and opinions from consultants.

The company reported FY26 revenue of ₹110.6 crore for these businesses, with an order book of ₹187.1 crore as of March 2026 and order guidance of ₹154 crore.

Strategic Joint Ventures and Subsidiaries

Astra Microwave has developed a network of subsidiaries and joint ventures to expand its technological capabilities.

Astra Rafael Comsys

Astra Rafael Comsys Private Limited was formed in 2019 as a joint venture between Astra Microwave and Rafael Advanced Defense Systems of Israel.

The JV focuses on tactical radio communication systems, electronic warfare and signal intelligence systems.

Its capabilities include software-defined radios, airborne electronic warfare, electro-optics and SIGINT systems.

Aelius Semiconductors

Aelius Semiconductors is a Singapore-based fabless MMIC design house focused on GaAs and GaN MMIC products.

Its products are targeted primarily at defence and space applications.

Astra Defence Technologies

Astra Defence Technologies is a wholly owned subsidiary with manufacturing and testing capabilities serving defence, aerospace, medical and industrial electronics markets.

Astra Space Technologies

Astra Space Technologies was incorporated in 2024 to deepen the company’s participation in the space sector, with a focus on satellite equipment manufacturing and integration.

Navictronics

Astra Microwave and Manjeera Digital Systems formed a 50:50 joint venture, Navictronics, in November 2024.

The JV is focused on manufacturing NavIC chips and GNSS products.

Management Transition

Astra Microwave has also announced a change at the top management level.

Mr. S. Gurunatha Reddy, the current Managing Director, will step down from the position of Managing Director with effect from September 30, 2026. He will continue with Astra Microwave as an Executive Director.

Dr. M. V. Reddy is proposed to assume the position of Managing Director with effect from October 1, 2026, subject to the approval of the Board.

Dr. M. V. Reddy has around 30 years of experience in marketing and business operations across the defence, space and telecom sectors in India and overseas markets.

The transition is therefore expected to bring continuity while placing greater responsibility on the company’s existing leadership team.

LEAP Framework for Growth

Astra Microwave has outlined its growth strategy under the LEAP framework:

• Lean & Learn
• Expansion
• Products
• Accretiveness

The company intends to leverage its existing R&D investments, technology platforms and product library to develop new IP-driven products.

The strategy includes collaboration with defence PSUs, start-ups, academic institutions and government research organisations.

The company has identified areas such as:

• Anti-drone systems
• Electronic warfare
• Satellites
• Software-defined radios
• Electro-optics
• Radar systems
• Commercial radar applications
• New export markets

The company also plans to improve return on equity, profitability, margins, working-capital efficiency and free cash flow generation.

Long-Term Strategic Vision

Astra Microwave’s strategic vision is aligned with India’s broader defence indigenisation and export ambitions.

The company’s long-term objectives include:

2025–2031: Achieve greater self-reliance and indigenisation.

2032–2038: Become a major defence exporter.

2038–2045: Become a global leader in selected niche technologies.

The company intends to achieve these objectives through continued R&D investment, strategic partnerships, stronger defence production capabilities, resilient supply chains and investment in engineering and technology talent.

Large Defence Opportunity Ahead

Astra Microwave estimates that it has a potential addressable opportunity of approximately ₹24,000–25,000 crore across various sectors through FY28.

The company is participating in multiple major defence programmes involving radar, aircraft, electronic warfare and surveillance systems.

Its capabilities include components and subsystems for programmes such as:

• Uttam AESA Radar
• LCA Mk1A
• AEW&CS
• Long Range Radar
• Medium Power Radar
• Airborne systems
• Electronic warfare platforms

The growing emphasis on domestic defence production and the government’s focus on indigenisation could create additional opportunities for companies supplying specialised electronics and subsystems.