Can Astra Microwave dominate defence radar market? Check its guidance and order pipeline

Synopsis: Astra Microwave Products has estimated FY27 revenue to be between Rs 1,400-1,500 crore, driven by an execution pipeline of Rs 6,000-7,000 crore and a defence-led order book, indicating a definite multi-year growth visibility.

The shares of this leading defence-based firm are in focus after it outlined a solid growth strategy backed by robust numbers that can significantly impact the company’s growth outlook. In this article, we will dive more into the details of it.

With a market capitalisation of Rs 9,122 crore, the shares of Astra Microwave Products Ltd. are currently trading at Rs 960.75 per share, down 2 percent from its previous day’s closing price of Rs 980.55 per share. Over the past five years, the stock has delivered a robust return of 669 percent, outperforming NIFTY 50’s return of 85 percent.

Future Outlook

Astra Micro Products is looking forward to the next few years with great optimism, as per the statement of Mr Atim Kabra, the Executive Director Strategy & Business Development of the company. 

The management is projecting the FY27 revenue to be around Rs 1,400-1,500 crore, which will be primarily driven by the strong and clear execution pipeline of Rs 6,000-7,000 crore. The pipeline indicates that the company has already gained a lot of clarity on the projects, and it plans to carry them out over the next 3-4 years, mostly in defence and radar-related systems. 

Astra Micro presently has a consolidated order book of around Rs 2,350 crore, which is enough to promise steady revenue in the near term. The company, according to Mr Kabra, intends to keep its current level of margins and, as a result of the execution of more high-value and complex defence orders, there is a probability of margin improvement in the future. The overall guidance serves as a testament to management’s belief in growth that is both sustainable and supported by long-term contracts in the defence sector.

Astra Microwave Ltd has reported an operating revenue of Rs 215 crore in Q2 FY26, representing a 7 percent decline compared to Rs 230 crore in Q2 FY25. However, on a quarter-on-quarter basis, it grew by 7.5 percent from Rs 200 crore.

In terms of revenue mix, it derives 77.4 percent of its revenue from the Defence segment, followed by 14.2 percent from Exports, including Deemed Exports, 5.8 percent from the Meteorological segment, 2 percent from the Space segment and the remaining 0.6 percent from Others.

Regarding its profitability, it reported a net profit of Rs 24 crore in Q2 FY26, representing a 4 percent decline compared to Rs 25 crore in Q2 FY25. However, on a quarter-on-quarter basis, it grew by 50 percent from Rs 16 crore.

During the quarter, the company landed new orders valued at Rs 238 crore in Q2, out of which Rs 213 crore were already executed during the quarter, according to the latest disclosures. The order book after this execution stands at Rs 1,916 crore, thus giving a strong revenue visibility for the coming quarters. 

Regarding the order mix, the company gets most of the business from the Defence and Public sectors, which together make up around 70 percent of total orders. After that, the Space segment accounts for 12 percent, the Meteorological segment for 11 percent, and the remaining 7 percent comes from exports. The company has a well-diversified order base across the critical sectors.

Astra Microwave Products Limited, or AMPL, is an Indian company that builds radio frequency and microwave systems for defence, space, weather, and telecom. The story goes back to 1991, when a group of scientists kicked things off with just a handful of people. Since then, Astra’s grown a lot; now it’s got several manufacturing and R&D centres in Hyderabad and Bengaluru, plus top-notch testing labs. They handle everything themselves, from the first sketch to the finished product.

These days, Astra isn’t just making parts; they’re supplying vital radar, telemetry, and communication systems to big names like DRDO, ISRO, defence sector units, and even some global players. They’re a key player in India’s push for self-reliance in defence and space tech. With steady leadership and strong ties to the government, Astra keeps pouring energy into new tech, expanding their capabilities, and bringing in fresh talent. They’re clearly aiming to keep growing for years to come.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Can Astra Microwave dominate defence radar market? Check its guidance and order pipeline appeared first on Trade Brains.