Synopsis: Astra Microwave Products Ltd powers India’s missiles, radars, and satellites through RF subsystems, backed by a ₹1,916-crore order book, rising DII stake to 14.55%, and FY26 revenue guidance of ₹1,150–1,200 crore
Astra Microwave does not manufacture missiles, radars, or fighter jets. Yet, it quietly sits inside most of them. Its microwave and radio frequency (RF) subsystems form the core sensing, communication, and guidance layers that allow India’s defence platforms to see, hear, track, and respond. This invisible role explains why Astra Microwave operates largely outside the spotlight, even as its importance within India’s defence ecosystem continues to grow.
Astra Microwave Products Ltd, with a market capitalization of Rs. 9,323.60 crore, closed at Rs. 982 on Wednesday, up by 2.87 percent from its previous day’s close price of Rs. 954.60 per equity share.
About the Company
Astra Microwave Products Limited is an Indian company based in Hyderabad that designs and manufactures advanced radio frequency and microwave sub-systems mainly for defence and space applications.
Its products are used in radars, electronic warfare, missiles, satellites, telemetry, weather monitoring, and communication systems, with customers across defence, space, civil, and telecom sectors in India and overseas.
Solving Problems Others Avoided
In the late 1990s and early 2000s, India faced a critical problem which is that the key microwave and RF subsystems were largely imported. These were not conventional electronic components but precision systems required to function under extreme temperatures, vibration, radiation, and high-frequency conditions where even microscopic errors could compromise entire platforms.
Astra Microwave chose to focus on exactly these complex, high-risk problems, building capabilities in RF modules, microwave subsystems, travelling wave tube amplifiers, antenna arrays, telemetry systems, and power amplifiers. This early commitment to complexity created a technological moat that few domestic players could replicate.
Embedded Across India’s Defence Platforms
Astra Microwave’s strength lies in being embedded deep within defence architectures. Its systems are integrated into missile seekers and guidance subsystems, battlefield and surveillance radars, airborne early warning and electronic warfare pods, satellite communication payloads, telemetry systems, and naval electronic warfare platforms.
Once these subsystems are certified and integrated, they remain part of the platform for years, often across the entire life cycle. Defence programs rarely change such vendors due to the cost, risk, and time involved in requalification.
Astra Microwave’s Customer Ecosystem
The company primarily serves India’s defence and space ecosystem, working closely with DRDO laboratories, defence public sector units, and private defence OEMs. Over time, Astra Microwave has also expanded its footprint in space-related programs, supplying microwave components and payload systems to ISRO-linked missions and private space players.
Its role is not transactional but collaborative, with long development cycles, rigorous testing, and repeated engagement across multiple programs. This ecosystem-driven model creates high entry barriers and reinforces long-term relationships.
What Drew Institutional Investors
One of the most telling indicators of Astra Microwave’s growing credibility is the rise in domestic institutional investor (DII) ownership. DII stake increased from just 0.07 percent in March 2023 to 14.55 percent by September 2025.
Institutional investors typically favour companies with high entry barriers, repeat revenue visibility, conservative balance sheets, and long-term structural relevance. Astra Microwave’s embedded systems model, expanding order book of Rs. 1,916 crore, limited leverage, and role in mission-critical programs align closely with these criteria, explaining the sustained institutional interest.
Deeptech First, Defence Second
While often categorised as a defence stock, Astra Microwave is better understood as a deeptech company rooted in physics-led microwave engineering. This distinction matters because it allows the company to extend its capabilities beyond defence into space and secure communications without reinventing itself.
As India transitions towards AESA radars, smarter missile seekers, network-centric warfare, and space-based surveillance, the relevance of high-frequency microwave expertise continues to rise, naturally expanding Astra Microwave’s opportunity set.
Risks That Come With Precision
Operating in high-frequency engineering comes with inherent challenges. Revenue recognition can be uneven due to long development cycles and stringent testing. Customer concentration remains a risk, with significant dependence on defence agencies and select OEMs.
Talent retention is another critical factor, as microwave engineering expertise is built over years of experience and cannot be scaled quickly. These risks, however, are structural to the domain and also contribute to the high barriers protecting the business.
Revenue in Q2FY26 stood at Rs. 215 crore, reflecting a 6.5 percent YoY decline from Rs. 230 crore in Q2FY25, indicating a modest year-on-year slowdown. However, on a QoQ basis, revenue increased 7.5 percent from Rs. 200 crore in Q1FY26, showing sequential improvement in business momentum.
EBITDA for Q2FY26 was Rs. 48 crore, down 2.0 percent YoY from Rs. 49 crore, but up a healthy 17.1 percent QoQ compared to Rs. 41 crore in Q1FY26, highlighting operating leverage in the quarter. Profit after tax rose to Rs. 24 crore, marking a 50 percent QoQ growth from Rs. 16 crore, despite a 4.0 percent YoY decline from Rs. 25 crore in Q2FY25, reflecting improved cost efficiency and sequential recovery.
Over the past three years, the company has demonstrated strong growth, achieving a revenue CAGR of 12 percent, a profit CAGR of 58 percent, and price CAGR of 51 percent reflecting its operational performance and market confidence.
A return on equity (ROE) of about 14.4 percent and a return on capital employed (ROCE) of about 18.7 percent, and debt to equity ratio at 0.24 demonstrate the company’s financial position. The stock is currently trading at a P/E of 57.9x lower as compared to industry P/E of 61.4x.
Revenue Guidance
Astra Microwave has reaffirmed its FY26 revenue guidance of Rs. 1,150–1,200 crore and stated that it remains on track to achieve this target. Looking ahead, the company expects growth to be driven by specific defence programs rather than one-time jumps.
In FY27, revenues are expected to rise to Rs. 1,400–1,500 crore as the QRSAM program begins contributing meaningfully. FY28 could see revenues of around Rs. 1,650 crore with continued QRSAM execution and the start of supplies for the Uttam radar used in the Tejas aircraft.
By FY29, revenues may approach Rs. 2,000 crore as the Su-30 upgrade program starts adding to turnover. In FY30, with multiple programs including QRSAM, Uttam, the Su-30 electronic warfare suite, and Virupaksha moving into full-scale production, revenues are projected at Rs. 2,250–2,500 crore. Management has clarified that the timing of this growth depends on customer schedules, and that most of the growth is expected to come in the later years.
Conclusion
Astra Microwave may not be a visible defence manufacturer, but it plays a crucial role in making India’s defence and space systems function effectively. By focusing on complex engineering problems and building long-term relationships across defence and space programs, the company has established steady credibility.
While growth can be uneven due to long project cycles, its strong technical base, rising institutional interest, and clear revenue roadmap suggest that Astra Microwave is well placed to remain an important, behind-the-scenes contributor to India’s defence ecosystem.
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