Aerospace & Defense
Astra Microwave Products Limited designs, develops, manufactures, and sells sub-systems for radio frequency and microwave systems used in defense, space, meteorology, civil, and telecommunication applications in India. It offers radar electronics, including active antenna array units, transmit receive (T/R) modules, wideband T/R modules, solid state power amplifiers, receivers, exciters, central units, antenna and electronic beam forming units, digital receivers, array group and monopulse receivers, waveform generators, and MMIC; electronic warfare comprising wideband and ultra-wideband subsystems, antennas, EDLVA and BLI super components, EW simulators, DIFM receivers, front end receivers, up and down convertors, and homodyne receivers. The company provides strategic electronics and telemetry, such as command guidance units, radio proximity fuse, transponder, phased array-based telemetry tracking system, sub-systems for gimbal based and AESA seeker, and ground and air-borne data link systems; data and video telemetry transmitters, receivers, and decoders, as well as PCM encoders, integrated telemetry transponders, auto-track antenna systems, and high-altitude proximity sensors. In addition, it offers ground-based systems consisting of sub-systems for multi-object tracking radar, coherent frequency generators, modulators, 8x8 switchable routers, V/UHF T/R modules, and Ka-band indoor/outdoor units; sub-systems for SAR payloads, geostationary satellites, and remote sensing satellites, as well as fabrication of flight sub-systems and screening; automatic weather stations, agromet meteorological stations, water level measurement, and automatic rain gauge, as well as avalanche, wind profile, and weather radars; global navigation satellite systems; unmanned ground vehicles; and products for homeland security. It exports its products. Astra Microwave Products Limited was incorporated in 1991 and is based in Hyderabad, India.
Summary of Astra Microwave Products's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
Last updated: Feb 25
Management Outlook and Key Points:
Astra Microwave anticipates 15-20% revenue growth in FY26, targeting Rs.1,200"“1,300 crore sales. EBITDA margins (~29-30%) are expected to remain stable or improve due to a favorable product mix and higher-margin orders. The standalone order book stood at Rs.1,960.2 crore (Dec '24), with Rs.350 crore expected in Q4 FY25 and Rs.1,300"“1,500 crore projected for FY26. Key growth drivers include:
Risks/Updates: Delays in Uttam AESA radar orders (expected by June '25), but long-term visibility remains strong with QRSAM, naval programs, and indigenization trends. Margins to stay resilient despite working capital pressures.
Last updated: Feb 25
Question 1:
"First of all, congratulations for a good performance in this quarter. I had a couple of questions. The first one is essentially on EBITDA margin. So if I look at this quarter, the EBITDA margin is touching almost 30%. As you indicated in your prepared remarks that the orders inflow that we are seeing in the current order book is primarily oriented towards defense and there are service orders as well. So is it fair to assume that now going forward, somewhere upwards of 25% EBITDA margin would be a norm for Astra?"
Answer:
Management confirmed that EBITDA margins above 25% are sustainable, driven by defense-focused orders, service contracts, and product mix optimization. Margins are expected to remain stable or improve slightly.
Question 2:
"The second question is on interest cost. Now, if I see that has increased sharply both on Q-o-Q as well as Y-o-Y basis. So was there a working capital buildup that we expect to be unlocked during Q4? And what was the nature? Why was this interest cost very high?"
Answer:
Increased interest costs were partly due to accounting standards requiring interest provision on customer advances (40% of the reported finance cost) and higher working capital borrowings. Actual borrowings rose due to business expansion, but the accounting provision adjusts as contracts execute.
Question 3:
"You also spoke on the anti-drone radar in your prepared remarks. So can you just highlight the kind of potential do we see in this? How is it different from our peers who are in this space?"
Answer:
The anti-drone radar, developed with DRDO, integrates RF detectors and jammers for scalable frequency and range. Successfully passing technical trials, it combines "soft kill" (jamming) and "hard kill" options, differentiating it from competitors.
Question 4:
"Sir, for the 9 months, our revenue stands at INR640 crores. So do you see any potential challenge for achieving our full-year target of INR1,000 crores?"
Answer:
Management acknowledged challenges but expressed confidence in achieving the INR1,000 crore revenue target for FY25, citing improved execution momentum and upcoming order conversions.
Question 5:
"What is the current debt-to-equity level? And what is the comfortable range that you are looking into?"
Answer:
Total debt (long- and short-term) stands at ~INR430 crores, with short-term debt at INR400 crores. The company maintains a manageable debt structure aligned with working capital needs.
Question 6:
"What was the revenue achieved by our company, JV company, Astra Rafael? And what is the potential that we see here?"
Answer:
The JV (Astra Rafael) reported INR200+ crore revenue for 9 months FY25, with an order book of INR475 crores. It secured a INR255 crore contract for software-defined radios and aims to expand in tactical communication and electro-optics.
Question 7:
"At 9 months '25, we are at INR1,960 crores. What's the visibility for the next 2 years in terms of order book? What is our estimate for '26 and '27 revenue growth?"
Answer:
FY26 order inflow is projected at INR1,300"“1,500 crores, with 15"“20% revenue growth. Margins are expected to remain stable. Export focus shifts to build-to-spec (higher-margin) projects, targeting 10"“15% of revenue.
Question 8:
"For our upcoming orders, if you could provide a breakup in terms of what we are targeting, defense, space, export, etcetera."
Answer:
Q4 FY25 expects ~INR350 crore orders: radar (INR66 crore), EW (INR45 crore), missile telemetry (INR50 crore), and exports (INR50 crore). FY26 radar orders may reach INR900"“1,000 crores, with exports contributing INR100"“120 crores.
Question 9:
"As we see a good jump in our share of profit from JVs, is this contributed by our new JV with Manjeera? What are we doing for Sematron Italia?"
Answer:
The new JV with Manjeera focuses on NavIC chip development, with early-stage progress. Sematron Italia receives RF module supplies under BTS contracts, with potential MMIC component collaborations.
Question 10:
"BEL indicated they might get QRSAM orders in FY26. Does this include QRSAM opportunities for Astra? What is the potential?"
Answer:
Astra's opportunity in QRSAM could reach INR1,700"“1,900 crores for subsystems. Participation is limited to specific modules in initial phases, not the full INR25,000 crore program.
Question 11:
"Are you saying margins will maintain 29"“30% for FY26? What revenue base is expected?"
Answer:
Margins are projected to stay at 29"“30% in FY26, with revenue guidance of INR1,200"“1,300 crores, reflecting 15"“20% growth.
Question 12:
"When will Uttam AESA radar contribute significantly? What is the capex plan for FY26?"
Answer:
Uttam AESA radar orders are delayed but expected by June 2025, with revenue from FY27. FY26 maintenance capex is estimated at INR30"“35 crores for capacity upgrades.
Profitability: Recent profitability of 13% is a good sign.
Balance Sheet: Strong Balance Sheet.
Smart Money: Smart money is taking extra interest in the stock as they increase their holdings.
Growth: Good revenue growth. With 30.3% growth over past three years, the company is going strong.
Size: Market Cap wise it is among the top 20% companies of india.
No major cons observed.
Comprehensive comparison against sector averages
ASTRAMICRO metrics compared to Aerospace
Category | ASTRAMICRO | Aerospace |
---|---|---|
PE | 55.53 | 42.06 |
PS | 7.42 | 8.95 |
Growth | 22.3 % | 9.9 % |
ASTRAMICRO vs Aerospace (2021 - 2025)
Investor Care | |
---|---|
Dividend Yield | 0.32% |
Dividend/Share (TTM) | 2 |
Shares Dilution (1Y) | 0.00% |
Diluted EPS (TTM) | 14.16 |
Financial Health | |
---|---|
Current Ratio | 2.59 |
Debt/Equity | 0.31 |
Debt/Cashflow | -0.76 |
Understand Astra Microwave Products ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
Shareholder Name | Holding % |
---|---|
RATNABALI INVESTMENT PRIVATE LIMITED | 6.3% |
EMERALD COMPANY PRIVATE LIMITED | 5.37% |
HDFC MUTUAL FUND - HDFC DEFENCE FUND | 3.79% |
ATIM KABRA | 3.53% |
PRAKASH ANAND CHITRAKAR | 3.41% |
GENESIS ADVERTISING PRIVATE LIMITED | 3.2% |
TATA AIA LIFE INSURANCE CO LTD-AGGRESSIVE GROWTH FUND-ULIF 006 01/07/06 TAL 110 | 3.16% |
RENUKA CHITRAKAR | 3.12% |
ADVENTZ FINANCE PRIVATE LIMITED | 2.9% |
MOUNT INTRA FINANCE PRIVATE LIMITED | 2.42% |
NIPPON LIFE INDIA TRUSTEE LTD-A/C NIPPON INDIA SMALL CAP FUND | 2.32% |
TEXMACO INFRASTRUCTURE & HOLDINGS LIMITED | 2.27% |
Clearing Members | 2.03% |
STRATEGIC VENTURES LIMITED | 1.76% |
KOTAK EQUITY OPPORTUNITIES FUND | 1.56% |
MOTILAL OSWAL NIFTY INDIA DEFENCE INDEX FUND | 1.24% |
Distribution across major stakeholders
Distribution across major institutional holders
Valuation | |
---|---|
Market Cap | 7.73 kCr |
Price/Earnings (Trailing) | 57.5 |
Price/Sales (Trailing) | 7.68 |
EV/EBITDA | 32.29 |
Price/Free Cashflow | -31.11 |
MarketCap/EBT | 47.83 |
Fundamentals | |
---|---|
Revenue (TTM) | 1.01 kCr |
Rev. Growth (Yr) | 11.16% |
Rev. Growth (Qtr) | 12.51% |
Earnings (TTM) | 134.43 Cr |
Earnings Growth (Yr) | 9.33% |
Earnings Growth (Qtr) | 86.78% |
Profitability | |
---|---|
Operating Margin | 16.06% |
EBT Margin | 16.06% |
Return on Equity | 13.71% |
Return on Assets | 8.36% |
Free Cashflow Yield | -3.21% |
Detailed comparison of Astra Microwave Products against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
---|---|---|---|---|---|---|---|---|---|
BEL | Bharat ElectronicsAerospace & Defense | 2.23 LCr | 23.96 kCr | +1.40% | +27.87% | 44.74 | 9.32 | +28.15% | +39.82% |
DATAPATTNS | Data Patterns (India)Aerospace & Defense | 12.52 kCr | 542.43 Cr | +32.32% | -27.98% | 70.01 | 23.08 | -3.17% | +7.76% |
PARAS | Paras Defence and Space TechAerospace & Defense | 4.61 kCr | 345.47 Cr | +19.40% | +54.57% | 91.7 | 13.34 | +42.49% | +55.75% |
AVANTEL | AvantelAerospace & Defense | 2.86 kCr | 243.39 Cr | +3.18% | - | 45.74 | 11.75 | +3.05% | +24.78% |
CENTUM | Centum ElectronicsIndustrial Products | 2.14 kCr | 1.09 kCr | +4.07% | -19.27% | -70.53 | 1.96 | -2.01% | -201.38% |