Astra Microwave Products Limited Q4 FY26 Earnings Conference Call

Conference Call Date: May 27, 2026

Financial Performance Highlights

  • FY26 Revenue: INR1157 crores (standalone and consolidated), delivering at par with guidance provided at the beginning of the year
  • Q4 FY26 Billing: INR490 crores, reflecting 16% year-on-year growth
  • Operating Cash Flow: Significant improvement to INR370 crores in FY26 compared to negative INR99 crores in previous year
  • Dividend: Board recommended dividend of INR2.40 per equity share (120% of face value) for FY25-26, subject to shareholder approval
  • R&D Expenditure: Increased year-on-year basis, supporting future business opportunities

Order Book and Business Development

  • Q4 Order Inflow: Fresh orders worth approximately INR530 crores secured in Q4 FY26
  • Total Order Book: INR2141 crores as on March 31, 2026 (standalone)
  • Pending Orders: INR300 crores more orders concluded for Price Negotiation Committee (PNC), expected to be received in next couple of months
  • Key Orders Received: SDR programs, subsystems of various radar projects from BEL, checkout hardware for Gaganyaan mission from ISRO
  • Order Visibility for FY27: Approximately INR1600+ crores expected to be booked in current year

Segment-wise Performance

  • Radar Business: Primary growth driver, contributing nearly 60% of revenue
  • Space and Meteorology: Contributed around 16% of revenue
  • Electronic Warfare and Missile: Expected to contribute around 25% of future orders
  • Export Business: Margins improved to around 45% due to shift from low-margin build-to-print business to higher value-added design-led exports

Joint Venture Performance

  • Astra Rafael Comsys (ARC): Closed FY26 with order book of approximately INR625 crores
  • ARC FY26 Performance: Booked orders worth INR546 crores, sales of INR360 crores
  • ARC FY27 Outlook: Expected minimum 50% growth in both order booking and sales; targeting INR600+ crores sales with visibility of INR200 crores order book
  • ARC Profitability: Share of profit after tax from JV was approximately INR8 crores for full year FY26 (INR1 crore refers to quarterly figure)

Strategic Initiatives and Developments

  • Demerger Plan: Board in-principle approved demerger of space, meteorology, and hydrology business to create sharper strategic and operational focus
  • Detailed Scheme: Expected to be formally approved by board over next few weeks
  • Technology Development: Successfully completed shipborne radar works and handed over systems to DRDO for final testing
  • Strategic Deliveries: Delivered critical subsystems for nation's unique strategic defence space program
  • MMIC Technology: Continued strengthening of proprietary products, particularly in MMIC technologies becoming competitive advantage

Growth Outlook and Guidance

  • FY27 Revenue Guidance: 15-20% growth rate reaffirmed, targeting INR1300-1400 crores sales
  • Long-term Vision: Company positioned to triple turnover over next 4-5 years (by FY30-FY31)
  • Growth Drivers: Based on 5-6 major programs including QRSAM, Uttam radars, Su-30 Virupaksha, Su-30 Angad, and electronic mines
  • IP-led Products: Multiple Astra-owned, Astra-branded products with complete IP expected to launch before Diwali 2026
  • DCPP Status: Company now serves as Development-cum-Production Partner for Su-30 electronics warfare upgrade program

Operational Metrics

  • Capex Plan: Normal annual capex of INR40-50 crores to continue, no additional major capex required for growth plans
  • Working Capital: Significant improvement in working capital cycle, expected to continue despite higher volumes
  • Finance Cost: Expected to remain similar to current year levels within sanctioned limits

Program-specific Updates

  • Uttam AESA Radar: Negotiations with HAL at final stage, order expected in Q2 or Q3 FY27
  • QRSAM: Expecting orders once BEL receives main contract; already receiving small quantities for FOPM model
  • Su-30 Upgrade Programs:
  • Radar (Virupaksha): AAAU development expected completion in 2-3 months, overall radar qualification expected in FY28
  • EW Pods (Angad): Development underway as DCPP, expected completion in one year, production orders expected after qualification
  • New Products: Ground penetrating radar in development with startup collaboration, trials completed with observations being addressed

Margin Outlook

  • Current Margins: FY26 delivered approximately 55% margins
  • Future Expectations: Aim to sustain current margin levels despite product mix changes
  • Margin Drivers: Improved export margins (45% vs single-digit in BTP business), space segment margins, and increased value addition

Market Opportunity

  • Addressable Market: Total accessible market remains approximately INR28,000 crores between FY26-FY28, though timing may shift to FY30-FY31 due to program delays
  • Export Strategy: Focusing on IP-driven products for global markets with higher value addition
  • Technology Development: Working on futuristic technologies including digital array radar and photonics radar

Capital Structure Impact

No immediate impact disclosed. Demerger plan may affect capital structure once formal scheme is approved.

Cash Flow Implications

Operating cash flow significantly improved to INR370 crores. Working capital requirements expected to be managed within existing sanctioned limits despite growth plans.