ASTRA MICROWAVE PRODUCTS LIMITED

Financial Performance

  • Q1 FY27 revenue stood at ₹182 crores, described as "modest" primarily due to temporary delays in customer approvals and closing of last-stage technical issues
  • Interest cost reduced substantially in the quarter due to minimal utilization of overdraft facilities, attributed to significant positive cash availability at the end of previous financial year
  • Company expects to cover delayed executions in Q3 and Q4 FY27

Order Book Position

Stand-alone Order Book (as of quarter-end): ₹2,156 crores

  • 66% from defense sector
  • 34% from space, metrology and hydrology sectors

Consolidated Order Book: ₹2,849 crores (includes service orders of ₹244 crores)

Major Order Win (July 2026): Significant order worth ₹2,205 crores from Hindustan Aeronautics Limited for procurement of critical subsystems for Uttam Radar

Current Total Order Book (post-HAL order): ₹4,300 crores (record-breaking)

Business Development & New Contracts

  • Booked new orders worth ₹185 crores in Q1 FY27
  • Emerged as lowest bidder (L1) for AAAU of AMCA program, expecting contract award within a month
  • Astra Rafael Comsys (JV) order book: ₹836 crores, with sales target of ₹360 crores for current year
  • Secured ₹45 crores contract from Bharat Electronics for MMIC chipsets
  • Won significant contracts from BDL and Space Application Center
  • Successful technology demonstrations in July 2026 for electromagnetic wall and vehicle-mounted anti-drone system

Production & Deliveries

Successfully built and delivered:

  • RF 5G systems
  • Ashlesha and Rohini modules
  • MPR modules
  • EW segment products: Shakti, Nayan and other programs

Financial Guidance

FY27 Guidance:

  • Revenue: ₹1,350 crores (±₹25 crores), representing 15-20% YoY growth
  • EBITDA margins: Expected to be similar to last year with positive delta increase
  • Order intake target: ₹1,600 crores for the financial year

FY28 Guidance: Revenue: ₹1,600 crores (±₹50 crores)

Long-term Visibility:

  • Expecting 6-7x growth over FY26 revenue of ₹1,057 crores in next 5 years
  • Order intake visibility of ₹8,000-9,000 crores over next 3-4 years to be executed over 5-6 years
  • Includes expected orders from:
  • QRSAM: ₹700-800 crores (first 3 regiments)
  • Astra Rafael Comsys: ₹500-750 crores
  • Su-30 programs (Virupaksha, Angad): ₹3,000 crores

Corporate Restructuring

  • Space and Weather divisions to be spun off as separate listed company
  • Will replicate exact shareholding pattern of Astra Microwave Products Limited
  • Expected to operate as independent entity from April 1, 2027
  • S.G. Reddy to lead the new company
  • First year guidance for new entity: ₹300+ crores revenue with 18-20% PBT margin
  • Plan to launch company's own satellite within first 6 months of listing

Management Changes

  • S.G. Reddy announced this is his last interaction as Managing Director
  • Passing leadership to M.V. Reddy and Atim Kabra
  • Company has inducted new leaders in last 18 months including:
  • New CTO
  • New Head of HR and Admin
  • New quality head
  • New purchase department head
  • New domain heads in R&D team
  • New Head of Sales and Marketing

Segment-wise Performance

Space Business:

  • FY27 revenue contribution expected: ₹120-150 crores
  • Plans to execute ₹100 crores orders from DRDO in next quarter

Metrology Business:

  • Supplied more than 45 Doppler weather radars to IMD
  • Orders on hand executable for next 2 financial years
  • Expect more orders under Mission Mausam in current financial year
  • Visibility for continued production for next 4-5 years

Export Business:

  • Pursuing MMIC component exports to US and European countries
  • Expecting sizable orders in next couple of years
  • Developing complete solutions for international markets

Program-specific Updates

Uttam Radar Order:

  • Execution period: 5 years (completion before FY32)
  • Phase 1: 12 numbers to be completed by September 2027 (14 months from order date)
  • Subsequent execution: average 25+ numbers per year
  • Company may complete total quantity by FY31

EW Programs:

  • Tejas LCA Mk1A: AATRU subsystem qualified, awaiting final qualification of EW suite
  • Su-30: Developing EW suite (Angad program) as consortium partner
  • LCH: Delivering some subsystems

Other Programs:

  • BrahMos: Supplying gimbal-based RF seekers and telemetry products
  • Developing seeker for BrahMos NG missile
  • Shatrughat and Samaghat: Expecting ₹100-120 crores orders
  • Counter-UAV solutions: Modular systems allowing client-mounted hard kill solutions

Working Capital & Capital Structure

  • Working capital pressure expected to build in Q3 and Q4 FY27
  • No plans to dilute equity for working capital requirements
  • Focus on maintaining positive operating cash flow and improving return on equity
  • Recently completed migration to SAP/HANA

Risk Factors

  • Stretched supply chains across borders due to global inventory restocking
  • Need to ensure supply chain integrity and timely deliveries