New Delhi: Astra Microwave Products Ltd is poised for significant growth in the coming year, driven by rising global demand for defence technologies.
The company, which specialises in designing and manufacturing radio frequency and microwave systems for defence, space, and telecom sectors, is targeting a substantial increase in revenue. This growth is supported by a robust order book, which currently stands at ₹1,960 crore, more than twice the total revenue for the financial year ended March 2024.
Astra Microwave’s management expects to achieve revenue guidance of at least ₹1,100 crore for the current financial year and anticipates new orders worth ₹1,300 crore to ₹1,500 crore in FY26, including exports.
The company’s strong position in the domestic defence market, with about 85% of its revenue coming from domestic defence orders, is expected to support margin expansion.
Astra Microwave’s EBITDA margin has significantly improved, reaching 29.1% in the December quarter, and the company aims to maintain margins above 25% going forward.
Astra Microwave is involved in several strategic projects, including the development of radar systems for India’s indigenous fighter jet Tejas and participation in technical trials for anti-drone radar for the Indian Army.
The Indian defence sector’s push for modernisation and indigenous manufacturing, coupled with geopolitical tensions, presents significant opportunities for Astra Microwave. The government’s commitment to defence spending and the goal of achieving defence exports worth ₹420 billion by 2025 further supports the company’s growth prospects.
As global defence demand rises, Astra Microwave is well-positioned to capitalise on these trends, with potential opportunities amounting to ₹8,000 crore within its total addressable market by FY28.
The company is also in talks with a global manufacturer for a large contract, which could further boost its revenue in the coming years.
