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Astra Microwave Products Ltd. — Call Transcript 2026
Jun 1, 2026
61201_rns_2026-06-01_528f734a-f830-41b8-acec-675e8504d8e6.pdf
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AMT
ASTRA MICROWAVE PRODUCTS LIMITED
Regd. Office: ASTRA Towers, Survey No. 12(P), Kothaguda Post, Kondapur, HITEC City, Hyderabad - 500084, Telangana, INDIA Tel:+91-40-46618000, 46618001. Fax:+91-40-46618048 Email:[email protected], website:www.astramwp.com CIN: L29309TG1991PLC013203
June 01, 2026
To
The General Manager
Department of Corporate Relations
BSE Limited
Sir Phiroze Jeejeebhoy Towers,
Dalal Street, Fort, Mumbai -400 001
Scrip code: 532493
To
The Vice President,
Listing Department
The National Stock Exchange of India Limited
Exchange Plaza, Bandra Kurla Complex,
Bandra (East), Mumbai - 400 051
Scrip code: ASTRAMICRO
Dear Sir/Madam,
Sub: Conference call transcript.
We are sending herewith Conference call transcript held with analysts on May 27, 2026.
The above information is also made available on the Company’s website www.astramwp.com.
This is for your information and records.
Thanking you,
Yours faithfully
For Astra Microwave Products Limited
THALLAPALLI ANJANEYULU
Digitally signed by
THALLAPALLI ANJANEYULU
Date: 2026.06.01
16:57:23 +05'30'
T. Anjaneyulu
Company Secretary & Compliance Officer
An ISO 9001, ISO 14001, ISO 45001 and ISO 27001 Certified Company
Works:
Unit 1: Plot No. 12, ANRICH Industrial Estate, Bollaram, Medak Dist., Telangana - 502325
Unit 2: Plot No. 56A, ANRICH Industrial Estate, Bollaram, Medak Dist., Telangana - 502325
Unit 3: Sy. No. 1/1, Imarath Kancha, Raviryala (V), Maheshwaram (Mdl) R.R.Dist., Telangana - 500005
Unit 4: Sy. No. 1/1, Plot No. 18 to 21, Imarath Kancha, Hardware Park, Raviryala (V), Maheswaram (M), R.R.Dist, Telangana - 500005
Unit 7: Sy. No.114/1, Plot No. S-2/9 & 10, E-City, Raviryala & Srinagar (V), Maheswaram (M), R.R.District, Telangana - 501359
R&D Centre: Plot No. 51(P), Bangalore Aerospace Park, Singanahalli Village, Budigere Post, Bangalore North Taluk, Karnataka - 562149
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AMP
Astra Microwave Products Limited
"Astra Microwave Products Limited
Q4 FY26 Earnings Conference Call"
May 27, 2026
E&OE: This transcript is edited for factual errors. In case of discrepancy, the audio recordings uploaded on the stock exchange on May 27, 2026, will prevail.
AMP
Astra Microwave Products Limited
CHOROSSEALL
MANAGEMENT: MR. S. G. REDDY – MANAGING DIRECTOR – ASTRA MICROWAVE PRODUCTS LIMITED
DR. M. V. REDDY – JOINT MANAGING DIRECTOR – ASTRA MICROWAVE PRODUCTS LIMITED
MR. ATIM KABRA – DIRECTOR, BUSINESS DEVELOPMENT STRATEGIC – ASTRA MICROWAVE PRODUCTS LIMITED
Astra Microwave Products Limited
Astra Microwave Products Limited
May 27, 2026
Moderator:
Ladies and gentlemen, good day, and welcome to the Astra Microwave Products Limited Q4 FY26 Earnings Conference Call. This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements do not guarantee the future performance of the company and it may involve risks and uncertainties that are difficult to predict.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. S. G. Reddy, Managing Director. Thank you, and over to you, sir.
S. G. Reddy:
Thank you, and good morning to everyone and a warm welcome to all the participants for the post-earnings call of our company. I am joined today by my colleagues Mr. M. V. Reddy; and Atim Kabra; and SGA, our Investor Relations Advisors. The financial results and investor presentation for Q4 and FY26 have already been uploaded on the company's website and the stock exchanges. I hope you had an opportunity to review them.
Let me begin with an overview of the industry outlook. The environment for the defence industry continues to remain highly supportive for the domestic players. The government's strong focus on indigenization is creating significant opportunities for private sector participation, with nearly 75% of India's defence capital acquisition budget now allocated towards domestic companies.
The long-term defence manufacturing cycle also remains robust, supported by accelerating government procurement momentum and increasing localization across critical defence programs. Indigenization is creating a structural opportunity for Indian companies, particularly in defence electronics, drones, and aerospace, which continues to be among the fastest-growing segments within the industry.
India's defence exports have also gained strong momentum, exceeding approximately INR38,000 crores in FY26 and continuing to grow steadily. At the same time, global supply chain diversification and rising defence spending across various regions are generating additional opportunities for Indian defence electronics and subsystem manufacturers like Astra.
Order book across the industry remains at historical high levels, providing strong long-term visibility. We expect FY27 and FY28 to witness stronger execution and improved revenue conversion across the sector. Overall, the defence sector is steadily transitioning into a sustained execution and manufacturing scale-up story.
We believe the company is well-positioned to benefit from these industry trends. To sum up, FY26 has been a year of steady delivery, strong execution, and important strategic initiatives aimed at building long-term growth for the company.
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Astra Microwave Products Limited
Astra Microwave Products Limited
May 27, 2026
Some of the financial performance highlights for the year I would like to announce here. FY26 has been another strong year for the company, characterized by consistent growth, effective execution, margin expansion driven by favourable revenue mix, and improved working capital cycle, resulting in operating cash flow of INR370 crores compared to minus INR99 crores as of last year. This is a very significant improvement and we expect to maintain the trend.
On a both stand-alone and consolidated basis, we have delivered strong growth across all key financial parameters. Detailed information including growth percentages and Q-on-Q or year-on-year comparisons have already been shared through our stock exchange filings and investor presentation, and I request you to kindly refer to these documents for more information.
The Board has recommended a dividend of INR2.40 per equity share, that is about 120% of face value for the year FY25-'26, subject to approval of shareholders at the ensuing Annual General Meeting. We also witnessed steady progress in our joint venture company, Astra Rafael Comsys. The JV closed the financial year FY26 with an order book of about INR625 crores and continued to receive significant orders from PSUs and Ministry of Defence.
It is expected to deliver a top line of over INR600 crores in FY27. Although the profitability during the year was impacted due to forex-related provisions, we expect improved profitability in the coming year. Our other wholly-owned subsidiaries have also performed well while continuing to support captive business requirements.
Further, we continue to see robust opportunities across all three product segments in the defines market and therefore reaffirm our FY27 top line growth at 15% to 20% rate, with a potential for much stronger growth over the coming years. We continue to proactively invest in development of products and solutions for various defence applications, which is reflected in our increased R&D expenditure on year-on-year basis.
These investments are expected to translate into significant business opportunities over the medium to long term and help us to achieve important milestones in revenue and profitability as we move forward. Other key business development happened during the year. On a strategic front, the Board of Directors have in-principle approved demerger of our space, meteorology, and hydrology business.
The objective of this move is to create sharper strategic and operational focus for business segments. The proposed structure will enable dedicated management teams to pursue sector-specific growth opportunities, enhance governance and accountability, simplify the corporate structure, and create clearer investment propositions to shareholders.
Furthermore, this restructuring will position us to capitalize on emerging opportunities both in India and globally. Over the medium to long term, we believe this initiative will support focused growth, better capital allocation, and improved operational efficiency. We will share the detailed
AMR
Astra Microwave Products Limited
Astra Microwave Products Limited
May 27, 2026
scheme of demerger once it is formally approved by board, which is expected over the next few weeks.
I will now hand over the call to Mr. M. V. Reddy and Atim Kabra, who will provide more further insights into new product developments, business outlook across near and long term, and the strategies being adopted to take the company to its next phase of growth. Thank you for now.
Dr. M. V. Reddy:
Good morning, everyone. This is M. V. Reddy, Joint Managing Director, and thank you for joining us today. I am pleased to share that FY26 has been another strong year for the company. As mentioned, we achieved turnover of INR1157 crores, delivering at par with the guidance given in the beginning of the year, that shows the strength of the technology portfolio and execution capabilities.
Our radar business continued to be a primary growth driver, contributing nearly 60% of our revenue, while space and meteorology segment contributed around 16%, demonstrating our expanding footprint in strategic and high-technology domains. In Q4 alone, we secured fresh orders worth of approximately INR530 crores, taking our total order book to a robust INR2141 crores as on 31st March, and concluded PNC of INR300 crores more orders which are expected to be received in next couple of months.
Key orders received during the quarter, which is in Q4, including SDR programs, subsystems of various radar projects from BEL, and the checkout hardware for prestigious Gaganyaan mission from ISRO. I am also proud to share that we have successfully completed all our related works in shipborne radar, which we took about couple of years back, and handed over the systems to DRDO for final testing. This marks the successful delivery of one of the nation's most strategic and technologically advanced defence program during this financial year, further reinforcing our capabilities in complex mission-critical systems.
Additionally, we have successfully delivered critical subsystems for one of the nation's unique and strategic defence space program, showcasing our growing technological strength and contribution towards the Indian strategic space capabilities. We also continue to strengthen our future growth pipeline through proprietary products, particularly in MMIC technologies. On the execution front, we have achieved Q4 billing of INR490 crores, reflecting the strong 16% year-on-year growth.
Major programs executed during the quarter included subsystems of radar, EW, and satellite programs, and Doppler weather radar for IMD. Going forward, we have a clear visibility of approximately INR1600 crores plus orders which can be booked in the current year, that is FY27. Around 25% of this expected to come from R&D programs, while balance are basically driven by the production orders.
Segment-wise, radar segment is again expected to contribute around 45%, electronic warfare and missile together around 25%, space and meteorology around 25%, and the remaining other
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Astra Microwave Products Limited
Astra Microwave Products Limited
May 27, 2026
from strategic business areas. So, this provides us strong confidence in sustaining our growth momentum and improving scale in the coming years. Regarding execution front, we have planned to book sales of INR1300 crores to INR1400 crores, that is around 15% to 20% growth compared to FY26, covering 40% of R&D and 60% from the production area.
As far as ARC concerned, it was a fabulous year for ARC. It surpassed the guidance. We booked orders worth of INR546 crores in the last year, that is FY26, and sales of INR360 crores. Going forward in FY27, we expect to outperform and we expect the minimum growth of 50% both in terms of order booking and as well as sales. As on date, we have visibility of INR200 crores order book in FY27 for ARC and also expected to cross INR600 crores sales.
Looking ahead, the outlook in Indian defence and strategic electronics sector remains highly promising. With the government's strong push towards the indigenous defence manufacturing and self-reliance, we are confident that company is well-positioned to sustain its growth trajectory and create long-term value for the stakeholders. That's all from my side.
I would be happy to answer your questions. Now I'll hand over to Mr. Atim Kabra, Director, Business Development Strategic. Over to you, Atim.
Atim Kabra:
Hi, good morning, everybody. And first and foremost, my gratitude to SGR, MVR, and the entire Astra team for delivering a strong set of numbers. Performance is never accidental; it is an outcome of discipline, persistence, and clarity of purpose, and I think that is what is visible here. At Astra, we have always believed in a simple maxim speak less, think long term, and deliver on what we promise. We are trying every single day to live up to that philosophy.
There are two other principles which guide us deeply. The first the only constant in life is change. In technology and defence, standing still is equivalent to moving backwards. You have to keep running simply to retain your position. The second principle comes from Andy Grove, Intel only the paranoid survive. And we take that quite seriously.
Healthy paranoia keeps organizations humble, agile, and hungry. It prevents complacency and it forces reinvention. And these principles, combined with our long-term orientation, define Astra's strategic DNA. Over the last few years, we have consistently spoken about three priorities enhancement on our return on equity, second, relentless focus on achieving a positive operating cash flow generation capability, and third, creation of operating leverage.
And I'm happy to say that Astra team has delivered meaningfully on all three fronts. And we think this is only the beginning of good things. As operating leverage kicks in increasingly, we believe that Astra story will become significantly stronger over the next five years, which is outlook which we had presented to you last quarter.
Whether it takes five years, four and a half, or five and a half years is less important than the direction of travel. Our trajectory is clear and our intent unwavering. We believe that Astra is
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Astra Microwave Products Limited
Astra Microwave Products Limited
May 27, 2026
structurally positioned to nearly triple its turnover over this period, while simultaneously improving the quality of earnings, cash generation, and long-term shareholder value creation.
Importantly, I think we've discussed this multiple times, that we do not run this company for quarterly applause. Quarterly numbers are outcomes but not our identity. Because we see ourselves as custodians of long-term interests of more than 100,000 shareholders who have placed their trust in us, with our objective being to build a sustainable, technologically relevant, cash flow focused enterprise that can compound value predictably over decades.
So today, while we are on track on these parameters, I also want to redefine how Astra should be viewed. Surprisingly, our website still describes us as a tier-2 subsystem supplier. But I'm glad to tell you that that description is now outdated. We have in reality evolved from a component manufacturer to a deeply integrated, IP-driven systems manufacturer to now becoming a development-cum-production partner for strategic national programs.
I'll repeat, we are now a deeply integrated, IP-driven systems manufacturer and a DCPP for a critical national program. And beyond that lies what I would call the Holy Grail, where Astra-owned intellectual property, Astra-branded products, and Astra-led solutions for India and the global markets are going to be created and sold. And that future, I'm glad to say, is visible now. This financial year itself, hopefully before Diwali, you will have multiple Astra products where we own the complete IP, they are our branded products and solutions for global markets, India first, global markets.
So, our roots, as many of you know, were in telecom, especially antenna design and manufacturing. And because of the heritage and technical depth of our founders, we gradually became trusted partners to India's defence labs. Over three decades, we built extraordinary horizontally technological depth across multiple domains.
In fact, one of our ongoing internal exercises is to catalogue the sheer number of indigenous programs and products whose development journey Astra has contributed to over the years. And the breadth is so extensive that even today we are still uncovering the full extent of our own technological footprint. Ironically, it sounds stupid that we can't do that, but this very well may be Astra's greatest hidden strength. In a world where technologies, threats, and platforms evolve rapidly, this horizontal capability stack creates resilience, adaptability, and staying power. And more importantly, it forms a moat which is difficult to replicate.
So, we are not building merely for the next quarter or the next order cycle, but for the next three to five decades. We've been around for three decades. And that is the lens through which we allocate capital, build capabilities, and take strategic bets. You are very well aware, we've touched upon this, that MMIC was created, MMIC division itself was created in 2005. And that chip design capability has become one of Astra's most important competitive advantages, which strengthens our technological independence and complements the horizontal breadth which we have built over decades.
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Astra Microwave Products Limited
Astra Microwave Products Limited
May 27, 2026
So where do we stand in the defence value chain? Yes, we manufacture components. Yes, we build subsystems ranging from advanced multi-layer PCBs to MMIC chips and highly sophisticated RF building blocks. But equally important is the fact that we design, integrate, and deliver complete systems. We are very much a tier-1 systems company. I don't say this lightly, because I'm going to rattle off a few complete systems which Astra has delivered.
Mobile Multi-Object Tracking Radar to SHAR and ISRO, complete; Phased Array Telemetry, that's PATM system to ITR and DRDO; Fixed Head Doppler Radars to ITR, DRDO; Radiation Mode T&E facility to same, to DLRL and DRDO. We have delivered PPTR, which is so important, to PXE and DRDO; Multi-Functional Pulse Compression Radar for SHAR and ISRO. We have delivered FMCW and MFCW based short-range and medium-range tracking complete radars to ITR, DRDOs.
These are systems, complete systems which have been delivered. Military radars, we have delivered ground-based surveillance radar systems. We have delivered active antenna array units for long-range multi-function radars and I still don't call this a system but a subsystem probably. But Drishti counter-drone radar, we call it D4 radar. We are developing, and in the next few months you will hear much more about it, low-level lightweight radar and bird detection and monitoring radar, complete system.
On weather radars, as MVR had alluded, we have, you know, delivered satellite earth stations, we have delivered complete X, C, and S-band Doppler weather radars, L and S, UHF based wind profiler radars. I can go on, but I think these are end-client delivery of complete systems which have been done by Astra. Tier-1 and systems manufacturer.
So, this is not aspirational anymore, but it is based on execution. We do not hesitate to share design parameters and technical details with our customers because we stand behind our engineering capabilities with confidence and transparency.
But this is what establishes Astra not merely as a supplier, but as a trusted indigenous technology partner. If you speak to our customers, you will hear the same sentiment that we feel internally. A quiet sense of pride, but pride tempered with humility in what persistent engineering effort and long-term commitment have enabled the Astra team to deliver.
So, this evolution continues. Having established ourselves as a systems manufacturer, we are now proud to participate in the next phase of value addition as a DCPP for a major Su-30 electronics warfare upgrade program which is under. This marks a strategic transition upward in the value chain, from participation to ownership, from execution to influence. And then the final frontier, the Holy Grail. Astra-owned, Astra-branded, IP-led products and solutions. Before Diwali, there will be multiple Astra products, Astra-branded, where complete IP is with Astra and we can compete in the rest of the world, which will be hitting the market.
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Astra Microwave Products Limited
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May 27, 2026
These are solutions which we intend to offer not only to Indian armed forces, but eventually to the global markets. And our first NCNC demo is planned within this quarter. And God willing, that will mark the beginning of an entirely new chapter in Astra's history.
So let me make one point very, very clear. The work underway today has the potential to position Astra in the immediate coming decade to more than $0.5 billion revenue enterprise and potentially much larger thereafter. And we do not make such statements lightly. You know, what we have said, we deliver. In fact, the entire tripling of our turnover that we spoke about in the four and a half, five and a half year time frame is based on just five to six programs and the rest is not even included in the numbers.
So, what I would tell our long-term investors even more is this, that not a single rupee from these future proprietary IP-led opportunities has been factored into our near threefold growth aspiration over the next five years. Everything beyond remains potential upside, contingent of course on successful execution. And which means that our stated growth path is grounded not in optimism, but in visible execution pipelines and existing business momentum.
And that distinction is extremely important. We want you to focus not only on our narrative, but also on delivery. So therefore, our focus is unchanged, technology depth, capital discipline, cash flow generation, customer trust, and long-term value creation. With this, I'm sure many of you have questions for SGR, particularly around sustainability of margins, cash flows, and scalability. So, let's open the door for discussion.
Moderator:
Thank you. We will now begin the question-and-answer session. The first question comes from the line of Amit Dixit with Goldman Sachs. Please go ahead.
Amit Dixit:
Yes, hi. Good morning everyone and thanks for the opportunity. Congratulations for a very strong set of numbers, operating cash flow as well as very nice deck that you have put highlighting quite a few details.
I have couple of questions. The first one is essentially if I look at EBITDA margin for the quarter, again, I mean not looking at the quarter per se, but if I look at the overall trajectory of EBITDA margin, particularly I mean it is like almost 33.3% for this for this quarter. And space revenue has increased. I understand I mean margins in space can be quite high.
Exports has also gone up. And so just want to understand two points over here since we are focusing a bit more on space and in export as well if I look at the order inflow it has remained quite strong. So, considering that space proportion would go grow, so do we can we expect margin trajectory to strengthen further? And secondly, what are these exports? I mean traditionally we had deemed exports which used to give us lower margin, but I think these are more IP-driven exports or subsystem-driven exports actually. So just wanted to get your thought on these parameters. This is the first question.
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Astra Microwave Products Limited
Astra Microwave Products Limited
May 27, 2026
Management:
Hi Amit. So, regarding exports, these are the exports made to our wholly owned subsidiary ARC. As we mentioned in the previous calls, these exports are different from the earlier offset-based exports where we were paid only for the conversion cost. Here actually these are the things where the RF portion of the SDRs are being co-developed between Rafael and Astra.
So, because of that, the value add is much higher than the regular exports that were recorded in the previous periods. Therefore, generally these carry good amount of value add. I would say the gross margin will be close to about 40% kind of thing in these exports. So that is the reason why there is an improved margin from export business as such. I think I have answered your first question Amit. What is the next one?
Amit Dixit:
Sir, another part was space because space is going up significantly.
Management:
Your other question Amit, as far as space is concerned, we have delivered the subsystems for a defence satellite program, which is a very main like complex subsystems which we made in over a period of one year, that would be completed in last quarter and that has a decent contribution. And we are expecting similar subsystems going forward as the user is planning to go for constellation of those satellites.
So, this will continue as for the orders what we are expecting from both ISRO and as well as from the defence side as far as the space business is concerned. And on your other question on the deemed export, yes, we year-on-year we are increasing our value addition in the overall contribution like whatever we've been contributing to our JV as well as the company. We are increasing that value addition in Astra and both in the testing front and also on the qualification front, hence the margins are also been increasing.
Amit Dixit:
Yes, so just as a follow-up, sir, I mean since ARC outlook is expected to be quite strong and space as you highlighted that you know we will be continuing with the value addition. So, the trajectory of margins, I'm not asking for a quarter or something, I'm asking a year-on-year kind of trend, would continue to strengthen or at least remain at this particular level? Will this be correct?
Management:
Yes, as far as the ARC is concerned, we have an order book. And last quarter, we have booked some quarter orders and this year also, we are expecting close to INR150 crores kind of orders from the JVC and the value addition will remain the same. So, going forward, for the next two to three years, we have a clear visibility to have a good growth.
Management:
But the numbers will be a function of the order mix which has been delivered, right? So, there may be some variations, you have to be acceptable and ready for that.
Amit Dixit:
No, that's fine. That's fine. Quite mindful of that fact, sir. The second question is on Sukhoi, and you highlighted in your prepared remarks that on DCPP role. So just there are two parts to it, Sukhoi upgrade, one is the radar, the Virupaksha which we are of course the partner.
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Astra Microwave Products Limited
Astra Microwave Products Limited
May 27, 2026
Wanted to understand a bit more on ASPJ pods, are we doing something over there as well? And is it possible for you to highlight, I mean, broadly a range of business size that we can expect from these upgrades.
Management:
Yes, Amit, two things. One is on the radar front, as we mentioned in our last couple of calls, we have been developing AAAU with the DRDO and we are the part of that Virupaksha program, and that development is going on. We are expecting that our portion to get completed in next few months, and hopefully the entire radar will be also be completed soon in this year or maybe.
As far as the EW is concerned, the pod jammer, we are part of that Angad program, again it's a DRDO program, and we are the DCPP, one of the DCPP, as you're aware that they selected two DCPP, we are one among them and that development program is therefore is going on with the DRDO.
Amit Dixit:
Okay, great. That's very helpful, sir. Thank you and all the best.
Management:
Thank you.
Moderator:
The next question comes from the line of Vikas Singh from ICICI Securities. Please go ahead.
Vikas Singh:
Good morning, sir, and thank you for the opportunity and lastly congratulation on very good set of numbers. Sir, just wanted to understand this revenue tripling guidance which we are giving. So, do we expect what kind of capex we need to spend further; in order to achieve that or majority of the capex are already in place, and we just need to invest working capital going forward?
Management:
Yes, in terms of the capex, as you know every year, we are augmenting the existing requirements by spending close to about INR40 crores, INR50 crores. So that will continue. Therefore, there won't be an additional capex beyond this what we are doing normally. Working capital, yes, depending on how the things are going to pan out, there will be working capital requirements.
As I mentioned in my call, there is a significant improvement happened in the working capital cycle in the last year, by realizing significant amount of debtors through which are being held up for various technical reasons. I would say that the improvement in terms of realization of the receivables will continue.
Therefore, though the increased volumes call for higher working capital utilization, we should be able to manage within the sanctioned limits as of today, thereby the finance cost and other things are going to be more or less similar to what has been incurred by the company in the current year.
Vikas Singh:
Okay, so the working capital situation would improve further going forward?
Management:
Yes.
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Astra Microwave Products Limited
Astra Microwave Products Limited
May 27, 2026
Vikas Singh:
Understood. Thank you so much. Second, my second question pertains to our mix of the order book. Given that the space segment order book as a percentage, year start order book as a percentage has shrunk, how should we look at the overall margin mix basically? Because I understand that probably space is number one or number two in terms of our margin profile?
Management:
Definitely the space margins are better compared to even defence also, but when you look at the overall space sales contribution, in the overall sales of the company, it is just around 10% to 15% kind of thing. Therefore, the reduction in the space order book or overall space contribution to the sales of the company should not have any negative impact in terms of the overall margins.
Vikas Singh:
Noted, sir. Can we can just correct me if I'm wrong, can we assume that given we are transitioning into a better product category going forward, our margins at least should be higher than what we have seen in the historical levels?
Management:
See, the margins delivered by the company in the current year is about 55%. Okay? So, you are still expecting an improvement over 50%-55%? Look at the industry standards. Yes, as we move forward, definitely there will be a change in the product mix of the company, but again it is subjected to various other variables. We feel that we should be doing very well by sustaining the current margins achieved by the company, not only in terms of the gross margin but also in terms of various profit margins.
Management:
And added to that, we in as mentioned, our business model towards the exports also changed. In if you look at the historical data of till FY24 or so, we largely depend on that BTP business where our value addition was less and margins were very less. And we came out of that, and we are accepting orders only if the value addition is more. We are focusing in that and also, we are focusing on IP-driven products for the export market. That is the reason our margins have been increased in in last couple of years.
Vikas Singh:
Noted, sir. And sir, lastly if I may ask.
Management:
Okay, amid from a guidance perspective, I think we should very clearly state, this probably is the top end, you can actually you should factor in slightly lower numbers only on the margin front, so that there is no disappointment coming in at a later date. This is probably as best as it gets, if I may say so.
Vikas Singh:
Thank you so much, sir. Just lastly if I can squeeze in one last question, in terms of our overall dependency on MMIC, so if you could explain that -- have we seen any problem so far or what is the percentage we are able to source in-house or domestically versus the import dependency there.
Management:
If you look at the overall MMIC thing, as of now we have not encountered any issue and that production and as well as development is going very smooth. And second thing is as far as the dependency like yes, in all our subsystems, we are most of the active devices we are sourcing out from our in-house MMIC division.
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Astra Microwave Products Limited
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May 27, 2026
And also, we are started promoting these MMICs to the domestic players and international players also. So, we are strategically looking at that particular business segment to enhance the product range, and also to meet the captive consumption and as well as to generate more revenue from the external market.
Vikas Singh:
Noted, sir. Thank you and all the best for future.
Management:
Thank you.
Moderator:
The next question comes from the line of Sanjeev Zarbade with Antique Stock Broking. Please go ahead.
Sanjeev Zarbade:
Yes, sir, congratulations for good set of numbers. Sir, in our presentation we have a slide which gives our total addressable opportunity of around INR28,000 crores between FY26 to FY28. Now since FY26 has been passed, what kind of -- would you want to change this number in terms of addressable market for us for the next two years?
Management:
Well, Sanjeev, the total accessible market remained same, but only there is a shift in the year as you know there are many programs got delayed for various reasons as these are all government-driven programs, depend on the budget and also depend on the priority these gets shifted.
And also, few development activities got delayed at various levels. So, the overall accessible market remains same, but only thing is we instead of FY28-FY29 may go up to FY30-FY31. So that's the one thing and we are always focusing on that particular market to maximize our share of the business.
Sanjeev Zarbade:
Yes, sir, and my next question is on the new initiatives like in terms of ground penetrating radars and the other developments that we are in the process making, how are we positioned there?
Management:
Yes, ground penetrating radar and all, we have developed it with collaboration with one startup company. We have gone for some trials and there were few observations we've been addressing that, and we soon we'll launch that product in time to come and to meet the customer requirement. But we started participating in few tenders.
Sanjeev Zarbade:
Okay, sir. That's it from my side and all the best.
Management:
Thank you.
Moderator:
The next question comes from the line of Vansh Modi with Svan Investments. Please go ahead.
Vansh Modi:
Hi, am I audible?
Management:
Yes.
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Astra Microwave Products Limited
Astra Microwave Products Limited
May 27, 2026
Vansh Modi:
Yes. Sir, I just missed your guidance on revenue. I heard you say that you expect to triple your revenue. Just wanted to know what the timeline would look like and what would be the drivers for this?
Management:
We are expecting at least next, down the line three to four years to triple the revenue or maybe you can say up to FY30 to FY31. So that's something which we are looking at based on the orders, timing of the orders and finalization of the contracts and all. So that's the one. And second question, what was your question?
Vansh Modi:
What would be the growth drivers for this revenue?
Management:
Yes, the growth drivers, there are many programs are there, both, you know, especially in the radar segment, we have seen clear visibility in to grow in airborne radar, fire control radar and surveillance and tracking radars and medium-range and long-range radars. So likewise in radar segment we have a huge opportunity in the industry.
Similarly in electronic warfare segment also, as I've explained just now, I mean we have we been there in the DRDO programs for some few of the airborne platforms which we are DCPP in that. So, we are developing that and once the development and qualification get completed, we expect production orders to come from the services.
And also, apart from that, we are part of part and parcel of BEL major programs like Nayan Shakti, Hima Shakti, Shatrughna or some other, there are so many programs which BEL is integrating. So, we are the qualified subsystem supplier for these systems. So that business will continue for next four to five years, three to four years.
And in the other segment like in the missile and telemetry also, we are there -- in the some of the active seekers we have developed for couple of missiles. We are expecting few orders in next two to three years. And in space segment, we are expecting repeat orders for the some of the satellite programs from ISRO and also from the defence satellites.
So, these are all our growth drivers going forward. And apart from that, as Mr. Atim had mentioned that in meteorology business also we have developed Doppler weather radars, wind profiler radars, which are, you know, the production orders are yet to come. So, we are we already booked few orders, more orders we are expecting next two to three years.
Vansh Modi:
Okay, thank you, sir. Just one last question. What is the current order book right now as you said you are planning to execute around INR1,600 crores in FY27? So just wanted to know what the current order booking is right now. That's it. Thank you.
Management:
Yes, we have order book of INR2,141. This is order book standalone order book of Astra.
Management:
And consolidated goes up to I mean consolidated is INR2,600?
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Astra Microwave Products Limited
Astra Microwave Products Limited
May 27, 2026
Management: Yes, consolidated is INR2,600, but standalone is INR2,141. Yes.
Vansh Modi: Thank you, sir. Thank you for the detailed answer.
Management: Thank you.
Moderator: The next question comes from the line of Jatin Jadav with Sahasraj Capital. Please go ahead.
Jatin Jadav: Hello. Am I audible?
Management: Yes, please.
Jatin Jadav: Thank you so much for the opportunity. Most of my questions have been answered, but on a technological front just to gain a better understanding, I wanted to understand where does Astra Microwave essentially sit in the entire radar ecosystem relative to other similar companies, specifically like which layer of the radar architecture does do we participate the most: RF electronics, TR modules, Beam Forming, Antenna Design and so on and so forth. That's my first question.
Management: Yes, when we compare with the other industries working in the radar domain, the differentiating factor here is we have grown from the component subsystems to the systems. So whatever systems we have taken it up to participate in the MOD program in services, so we have been developing in-house the total with the complete IP with Astra.
It takes some time for us to come to this standard of, you know, global, you know, make, but, you know, finally the contribution will be better and also, we can be more competitive as compared to other players.
And as far as the overall business in the radar is concerned, I said we are continuing our participation in the DRDO programs for all the development in the ground and airborne programs and also, we are part we are partnered with BEL for the production programs as we are the qualified supplier for the during the development phase.
So that while continuing that business in subsystems and components, we are focusing in the systems for the MOD as Mr. Atim had mentioned, we have taken up few projects like to address directly to the MOD. Those projects are in development phase. Most likely in next few months by the month by this year-end, I think we should be in a position to demonstrate to the user and to become a qualified supplier for this.
So, these we are growing in both, you know, subsystem-wise and as well as in the systems front. And apart from that, we are also working out on to provide overall solutions. It is it is not only a system; it is a complete solution to the end user including couple of systems mounted in the one platform.
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Astra Microwave Products Limited
Astra Microwave Products Limited
May 27, 2026
That we more details will be shared to you in a time to come, but we are focusing on that and that those programs are also in very active stage of, you know, completion. So, by November I think we should be in a position to roll out at least one or two systems.
Jatin Jadhav:
Got it, sir. My second question is kind of like a follow-up on this only. So, over the time, yes, over 30 years, so you've developed in-house IPs and technological capabilities and so there you've positioning yourself very strongly in the radar ecosystem.
So, based on that, I wanted to understand, for example, is it possible for us or let's say a similar company to divulge into different types of radar? Let's say right now if we can cater to AESA radar, then can we shift to a let's say surveillance radar based on the complexity there, SAR control radar, probably a small seeker also. Is that possible based on our current capability?
Management:
Got your question. See, apart from the current business of the radar, we are also we are working in the futuristic technologies like we have recently developed and delivered major subsystems for the digital array radar for DRDO and that is giving us edge to get more orders in the digital array radar.
And similarly, we have developed photonics radar, which is working on the optical domain and that also with collaboration with one startup company we have developed this overall solution with for the DRDO and we are successfully delivered.
So, these are the few technologies which are new futuristic, you know, the technologies for in the radar domain which are we've been working. So, we are continuously working on this domain and also for existing radar we are optimizing the technology.
For example, to minimize the size of the array and all like, you know, since we have the components within the company, so we are in a position to scale down the overall size and form factor so that, you know, to offer miniaturized size radar for the future. So, these are all we've been working continuously to make sure that we should be in a better position as compared to the competitors.
Jatin Jadhav:
Got it, sir. Thank you so much. I'll get back into the queue for follow-up questions.
Moderator:
Thank you. The next question comes from the line of Prerit Jain with Motilal Oswal. Please go ahead.
Prerit Jain:
Yes, thank you for the opportunity. Sir, I only have one question. Can you please give us an update on the QRSAM and Uttam AESA radar orders? Like you earlier mentioned that there have been some delays in some of the orders from DRDO side itself? So, can you give us an update on that and whether these orders will come all together and the execution will be panned out in subsequent years or even the orders will come in batches?
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Astra Microwave Products Limited
Astra Microwave Products Limited
May 27, 2026
Management:
Yes, as far as the Uttam radar is concerned, the negotiations have been started with the HAL, as you know they have been negotiating is because of the big size in contract, so we have already are, you know, started and I think it is almost reaching a final stage.
I think we are expecting, you know, this particular order sometime in the Q2 or Q3 and as the process is more like, you know, to place the order. So, but as far as today's position, as on today, negotiations are on for Uttam radar with HAL. That much I can tell you. And second is on the QRSAM front, as probably you're all aware with the BEL stated that, you know, they're expecting contract by June or so.
So, we also expect orders beyond, you know, once the BEL get the order. But before that, we are we're expecting the FOPM version, that is first of production model, which they got clearance from internally the board, they are placing orders on vendors, all vendors. So, we have started receiving small quantity for that FOPM model. And once after they get the main contract, we expect the orders in next, you know, three to four months from their order.
Prerit Jain:
Got it, sir. Yes, that is all from my side. Thank you.
Management:
Yes.
Moderator:
Thank you. The next question comes from the line of Sahil Karia with White Pine Investment Management. Please go ahead.
Sahil Karia:
Yes, thank you for the opportunity. I just wanted to ask on the like what are the timelines for this Su-30 upgradation program for both radar and the ASPJ pods? By when can we expect the production orders to come in?
Management:
Yes, I think I've answered this question just while some time back, but anyway I again repeat. For the radar, the AAAU which we have taken up development, that is on I think next two to three months we should be in a position to complete the development and hand over to DRDO. And in all probability, I think in maybe FY28, DRDO will be ready to qualify the overall radar.
But we cannot comment on behalf of DRDO. We are expecting that this will be completed in next financial year. And similarly in the EW front also, we are taken up as a DCPP for that overall program and it is in the development-cum-development phase and we are expecting next one year that also we should be completed and gets qualified. So soon after qualification, we hope to get production order from the services.
Sahil Karia:
Sir, the reason behind this was on Bharat Electronics call, they had mentioned that the Su-30 program is still in the development stage and it would be in the same stage for the next five years. So just wanted a colour from your side that like do we receive the production orders after five years or like how it would be?
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Astra Microwave Products Limited
Astra Microwave Products Limited
May 27, 2026
Management:
No, as I said, you know, the next year probably next FY28 I think radar should be get qualified, but, you know, the user qualification and all may take another one more year and so thereafter I think, you know, maybe next two to three years will take time to get the production orders. This is what our expectation as far as the progress is concerned.
Sahil Karia:
Okay, thank you, thank you so much. That's all from my side.
Management:
Thank you.
Moderator:
Participants, you may press star and one to ask a question. The next question comes from the line of Balasubramanian from Arihant Capital Markets. Please go ahead.
Balasubramanian:
Good morning, sir. Thank you so much for the opportunity. Sir, our exports has been declined because we are moving away from low-margin build-to-print business. I just want to understand what is our current margin on this build-to-print and other design-led export orders? Just wanted to get the difference between both, sir?
Management:
Margins, see as I mentioned like, you know, the low-margin BTP business we have left it out and we are not addressing that particular market. We are only addressing market in exports where our value addition is more and margins are much better than the BTP market. So here although it is BTP, but our value addition is more and the margins as Mr. SGR had already mentioned, it is around 45% as compared to the single-digit figure in the BTP business.
Balasubramanian:
Okay, sir. Sir, my second question on the JV, we have seen just INR1 crores share of profit from JV in FY26, but in earlier con-call we have mentioned around ARC revenue of INR350 crores with 10% to 12% PBT margin. Just want to understand is there any significant cost in terms of technology transfer fees, royalties, or any pre-operational expenses on the JV level?
Management:
I think INR1 crores profit you are referring to the quarter, otherwise for the year, no, it is around close to about INR8 crores. That is the share of profit after tax, that is from the JV. Yes, during the current year, of course R&D expenditure is always there. In addition to that, there is a foreign exchange provision which the company has to make.
So, because of that, close to about $2 million of provision was made in the books of accounts. As a result, the overall profitability has come down. But otherwise, the share of profit from the JV for the entire year is close to about INR8 crores after tax.
Balasubramanian:
Got it, sir. Thank you.
Management:
Yes.
Moderator:
The next question comes from the line of Darshil Jhaveri with Crown Capital. Please go ahead.
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Astra Microwave Products Limited
Astra Microwave Products Limited
May 27, 2026
Darshil Jhaveri:
Hello. Good morning, sir. Thank you so much for taking my question. Sir, a lot of my questions have been already answered, but just a few regarding the 3x target. So, number one, it would be kind of like a asymmetrical growth, right?
Like that we would be having like it would because of our product approvals, a lot of this growth would come towards the end, like FY29 - FY30. Is that a fair assumption, sir? And are we including the JV's revenue, our share of JV's revenue in this or what the -- or this is just standalone, sir?
Management:
Let me answer this, MV. Yes, you're right, absolutely. It is going to be rear-ended. There are basically five or six major programs which are driving this as I think I alluded a couple of times now. We have QRSAM, we have Uttam radars, we have Su-30 Virupaksha, we have Su-30 Angad, and we have regular business which we do for our JV and also maybe, you know, electronic mines, for example, is a big area for us, okay?
So, these so it is only just these five or six programs that we're talking about which will lead us to the kind of numbers which we have indicated. We are not factoring in our export potential out here. We are not factoring in a whole lot of other programs which we are a part of and I think MV alluded to a lot of BEL programs, you know.
That's all gravy on the top as and when it comes in, it keeps adding to our bottom line and makes up for some delay or some mishap that happens, so which can pull back this number. So, there's enough flexibility and depth built into these numbers to achieve them in four and a half to five and a half year time frame.
Darshil Jhaveri:
Oh, okay, fair enough, sir. And sir, just wanted to understand for the JV, we are kind of I think targeting around INR600 crores revenue this year. So, what would be the margins in this like business? What can we expect to hit our P&L, sir? Rough range would also be fair enough, sir.
Management:
Yes, definitely it is going to be an improvement over the current year. EBITDA, I think around 18% to 20% is what is being projected by the company. So, basing on that, on INR600 crores top line, at least about INR20 crores plus of will be our share of profit for the entire year. That is what I am expecting as of now.
Darshil Jhaveri:
Okay, okay, fair. So, we I think in the past had said around 10% PBT, so INR20 crores would be a kind of a lower PBT. So, what would be so is there higher depreciation or interest cost that, you know, something that eating up or how would you say?
Management:
See, I have given the number at a lower end. Let us wait for the year to proceed. When I said INR20 crores, that is a minimum. Let us see how the things proceed.
Darshil Jhaveri:
Okay, yes, fair enough. That's it from my side. Thank you so much, sir. All the best.
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Astra Microwave Products Limited
Astra Microwave Products Limited
May 27, 2026
Moderator: Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference over to the management for their closing remarks.
S. G. Reddy: Thank you and thank you for your presence. I guess we had a good discussion and we wish to meet you again at the end of Q1. Thank you very much.
Dr. M. V. Reddy: Thank you.
Atim Kabra: Thank you, thank you guys. Take care.
Moderator: Thank you, sir. Ladies and gentlemen, on behalf of Astra Microwave Products, that concludes this conference call. Thank you for joining us and you may now disconnect your lines.
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