Defence Stock on Radar: Astra Microwave Eyes ₹1,300 Cr Revenue in FY26 Amid India’s Defense Boom
Defence Stock: India’s defence and aerospace sector is in the midst of a historic growth trajectory, and one company that’s quietly becoming a major player in this transformation is Astra Microwave Products Ltd. With a strong FY26 revenue guidance and a robust order pipeline, Astra Microwave is positioning itself as a key defence stock to keep an eye on.
📈 Sector Overview: India’s Defence and Aerospace Boom
India’s Aerospace and Defence industry is firing on all cylinders. In FY 2023-24, India achieved record-breaking defence production of ₹1.27 lakh crore, while defence exports crossed ₹21,000 crore, a clear testament to the sector’s rapid evolution. The Indian government has awarded 92% of new defence contracts to domestic companies, indicating a powerful push towards indigenisation. The domestic aviation market, now valued at $14.47 billion in 2024, is expected to touch $40.81 billion by 2033.
This aggressive expansion directly benefits homegrown defence suppliers like Astra Microwave Products.
💼 Company Snapshot: Astra Microwave Products Ltd
With a market cap of ₹10,400 crore, Astra Microwave specializes in designing and manufacturing sub-systems for Radio Frequency (RF) and microwave systems used across defence, space, meteorology, and telecommunication applications. Its clients include marquee names such as Ministry of Defence, DRDO, ISRO, HAL, BEL, and even international defence giants like Rafael, Thales, and Raytheon.
As of May 31, 2025, the stock is trading at ₹1,095, slightly down from its previous close of ₹1,104.30, but its long-term prospects remain strong due to solid fundamentals and consistent defence-driven growth.
📊 FY26 Revenue Guidance: ₹1,200–1,300 Cr
In a recent announcement, Director Atim Kabra revealed that Astra Microwave Products is targeting revenue of ₹1,200–1,300 crore in FY26. This optimistic projection is based on an expected order intake of ₹1,300–1,400 crore this year, highlighting the company’s strategic momentum and aggressive growth ambitions.
🔍 Operational Highlights & Order Book Insights
- In FY25, the company derived a massive 80.6% of its total revenue from the defence sector, reaffirming its dominance in this space.
- Other contributions came from:
- Exports (10.5%)
- Space (5.6%)
- Meteorology (2.3%)
- Others (1%)
- In Q4 FY25, revenue composition leaned even more heavily on Defence at 84%.
📦 Order Intake in Q4 FY25:
| Segment | Order Value (₹ Cr) |
|---|---|
| Defence | 351.8 |
| Meteorological | 44.0 |
| Space | 20.9 |
| Exports | 4.0 |
| Total | 420.7 |
Astra executed ₹429 crore worth of orders in Q4 FY25, a testament to its efficient operational capability.
📚 Segment-Wise Order Book (as of March 31, 2025):
| Segment | Share of Order Book |
|---|---|
| Defence/Public | 69% |
| Space | 12% |
| Meteorological | 10% |
| Exports | 9% |
| Total | ₹1,952 Cr |
Astra’s historic order book (FY20–FY25) shows consistent reliance on radar electronics, missile systems, and electronic warfare systems.
📊 Key Financial Ratios and Metrics
| Metric | Value |
|---|---|
| Market Cap | ₹10,400 Cr |
| Current Price | ₹1,095 |
| 52-Week High/Low | ₹1,185 / ₹584 |
| Stock P/E | 67.8 |
| Book Value | ₹116 |
| Dividend Yield | 0.18% |
| ROCE | 19.1% |
| ROE | 14.9% |
| Face Value | ₹2.00 |
🔎 Why Astra Microwave Is a Defence Stock to Watch
- Revenue Guidance: A bold FY26 revenue target of ₹1,300 crore sets the tone for aggressive growth.
- Strong Order Book: ₹1,952 crore with 69% from defence signals long-term project stability.
- Sectoral Push: Government backing and a booming aerospace market make defence suppliers highly lucrative.
- Robust Clientele: Trusted by Indian defence authorities and global OEMs alike.
- Operational Execution: Execution of ₹429 crore in Q4 FY25 shows capability to deliver on time.
❓ Frequently Asked Questions (FAQs)
Q1: What is the FY26 revenue target for Astra Microwave Products?
A: The company is targeting a revenue of ₹1,200–1,300 crore for FY26.
Q2: How much of Astra Microwave’s revenue comes from the defence sector?
A: Around 80.6% of FY25 revenue came from the defence segment.
Q3: Who are the major clients of Astra Microwave Products?
A: Key clients include the Ministry of Defence, DRDO, ISRO, HAL, BEL, Rafael, Thales, and Raytheon.
Q4: What is the total order book value as of March 2025?
A: The total order book stands at ₹1,952 crore.
Q5: Is Astra Microwave a good defence stock to invest in?
A: With strong revenue guidance, a robust order book, government backing for domestic defence production, and high ROCE/ROE ratios, Astra Microwave presents itself as a promising long-term defence play.
Q6: What are some of the key defence programs Astra is involved in?
A: Programs include AEW&CS, AESA Radar, ASPJ systems, and long-range radar modules.
🔚 Final Word:
With the Indian defence sector booming and Astra Microwave playing a pivotal role in supplying cutting-edge RF and microwave technologies, the company is well-poised for a breakout. For investors seeking exposure to the defence sector, Astra Microwave Products Ltd is a stock worth keeping on the radar.
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