ASTRAMICRO - Astra Microwave Products Ltd. Share Price

Management of Astra Microwave Products expects a promising outlook for FY '26, having achieved a strong start with a 28.1% increase in year-on-year revenue, totaling INR 197 crores in Q1. The standalone order book has reached INR 1,891 crores, with a significant focus on build-to-spec orders which offer higher value add.

Looking ahead, they anticipate robust order inflows, projecting around INR 1,300 to 1,400 crores for the fiscal year, having already booked approximately INR 260 crores in the current financial year. A notable order worth INR 135 crores from the DRDO has been secured for upgrading ground-based radar systems.

Key forward-looking points include:

• Participation in the Indian government's Mausam program to deploy weather radars nationwide, expected to create recurring orders.
• An investment of INR 239 crores in the space sector, with a wholly-owned subsidiary, Astra Space Technologies Private Limited, established to enhance capabilities in satellite manufacturing and related technologies.
• Development and delivery of multiple radar systems, including the AAAU and the establishment of clean room facilities for satellite assembly.
• The integration of AI in their weather services, indicating a shift towards a comprehensive "Weather as a Service" model.
• A significant growth potential in anti-drone systems, with participation in over three dozen requests for information, outlining a critical business development strategy.
• The company aims to maintain a healthy profit margin while pursuing consistent growth, expecting to sustain a 20% EBITDA margin moving forward.

These developments position Astra Microwave to leverage the growing opportunities within the Indian defense and aerospace sectors while enhancing their technological capabilities across varied applications.

Q&A Section Summary from Astra Microwave Products Limited Q1 FY '26 Earnings Call

1. Amit Dixit (Goldman Sachs): "In the prepared remarks, you mentioned a number of INR800 crores. Just wanted to understand whether it is the residual order inflow or total order inflow? Also, could you break it up in different segments like radar, EW systems?"

Management: "The INR800 crores refers to the expected additional orders from our joint venture. We project to book approximately INR1,300 to INR1,400 crores this financial year, with INR260 crores already booked by now."

2. Amit Dixit: "On Uttam Radar, have we received the order? If not, when do we expect to receive it?"

Management: "Currently, HAL is facing delays due to testing, but we expect some quantity to be inducted soon, possibly 10 to 12 units in Phase 1. It's too early to specify exactly when or how many."

3. Niraj Mansingka (White Pine Investment Management): "What is the value of the Virupaksha order?"

Management: "We can't disclose the exact value, but we received a contract for two Active Array Antenna Units, which we and BEL are developing together."

4. Niraj Mansingka: "Regarding anti-drone opportunities, what's the potential opportunity?"

Management: "Many armies globally are incorporating anti-drone systems. We've participated in over three dozen RFIs, indicating significant market potential."

5. Rupesh Tatiya (Shree Rama Managers): "Is the X-band seeker for a missile? What is its stage?"

Management: "Yes, we successfully delivered the X-band seeker to DRDO, which has been mounted and tested, and discussions indicate potential orders of 50 to 60 over the next two to three years."

6. Parag Bhatia (Sukrit Investments): "Can we get details on the SDR trials for ARC?"

Management: "ARC has qualified in initial trials, with final trials scheduled soon. We're optimistic about winning the bids following these trials."

7. Ajit Sethi (EIKO Quantum Solutions): "What revenue growth are you targeting for FY '26?"

Management: "We expect an 18% to 20% year-on-year revenue growth while maintaining a similar profit margin as previous years."

8. Keyurkumar (Niveshay): "Can you provide updates on ground stations and satellite building?"

Management: "We're developing small satellites for low Earth orbit applications, and we're focused on multiple partnerships to enhance our capabilities in this segment."

9. Rupesh Tatiya: "What is the commercialization timeline for the Shipborne Radar?"

Management: "It's currently indigenizing imported radars. Finalization of quantity and timeline is expected in a couple of months following Navy's expressed interest following our technology demonstration."

This summary captures the key inquiries and responses during the earnings conference call, maintaining factual integrity and important figures as requested.