Astra Microwave Products has reached a record order book of Rs 4,361 crore, led by a Rs 2,205-crore radar contract from Hindustan Aeronautics. While recent quarterly results were soft due to operational hurdles, the company targets 15% revenue growth for fiscal 2027. Investors are closely monitoring the planned April 2027 demerger of its civilian divisions as a key value-unlocking event.
Astra Microwave Products has reported an all-time high order book of Rs 4,361 crore, providing clear visibility on its business pipeline for the coming years. A major driver for this surge is the Rs 2,205-crore contract from Hindustan Aeronautics Limited for the Uttam Radar, a key defence project that strengthens the company's position in the radar and electronic warfare sector.
While the record order book points to future growth, the company’s recent performance for the first quarter of fiscal 2027 faced pressure. Revenue declined by 11.5 percent to Rs 177 crore, with net profit dropping to Rs 12 crore. The management has attributed this dip to temporary technical clearances and supply chain bottlenecks rather than a structural demand issue. Investors may watch whether the company can normalize these operations in the second half of the year, as consistent execution is required to meet the 15 percent revenue growth target set for fiscal 2027.
Looking ahead, Astra Microwave is preparing for a significant corporate restructuring. The company plans to demerge its Space, Meteorology, and Hydrology divisions into a separate listed entity by April 1, 2027. This move is designed to unlock value by allowing these specialized civilian segments to operate independently from the core defence business. As the company participates in advanced defence programmes like the Advanced Medium Combat Aircraft and Tejas Mk1A, this split may allow for more focused management of both its defence and civilian growth engines.
The stock is currently trading at approximately 47 times its estimated earnings for fiscal 2028, reflecting a valuation premium. This premium is generally linked to the long-term visibility provided by its defence contracts and the expected transition toward higher-margin electronic systems. The next important monitorables will be the company’s ability to improve profit margins in the coming quarters and the progress made on the Uttam Radar project. Investors will also track updates on the demerger timeline, as the success of this restructuring will depend on the independent growth trajectories of both the defence and civilian segments.