Astra Microwave Products Ltd (ASTRAMICRO) Q1 FY27 Earnings Call: Record Rs. 4,300 Cr Backlog, Guides 15-20% Revenue Growth

Astra Microwave Products Ltd held its Q1 FY27 earnings call on August 10, 2026. Here's a quick read of what management said — performance, strategy, and the outlook ahead.

Modest Quarter, Strong Backlog

• Q1 FY27 revenue of Rs.182 crores — described as "modest" due to temporary delays in customer approvals, last-stage technical issues, and supply chain problems that postponed planned sales.
• Standalone order book at Rs.2,156 crores as of Q1 FY27 (66% defense, 34% space/meteorology/hydrology); consolidated order book stood at Rs.2,849 crores including Rs.244 crores of higher-margin service orders.
• New orders of Rs.195 crores booked in Q1 FY27, matching guidance, including a Rs.45 crores contract from Bharat Electronics for AlMMI chipsets and other wins from BDL and Space Application Center.
• Interest cost in Q1 FY27 was down substantially due to significant positive cash balances at the end of FY 2025-2026, reducing overdraft utilization.
• Revenue shortfall expected to be recovered in H2 — management stated the business is "not quarterly-driven" and expects to "cover it up in Q3 and Q4 FY 2026-2027," remaining confident in full-year guidance.

Record Rs.4,300 Cr Backlog; Multi-Year Visibility

• Total order book reached Rs.4,300 crores as of end-July 2026 (post HAL order), the highest in company history; of this, Rs.2,850 crores is executable within FY27 and FY28 except the Uttam contract spanning 4-5 years.
• Landmark Rs.2,205 crores order from Hindustan Aeronautics Limited (HAL) for critical subsystems of the Uttam radar, secured in July 2026, described as reflecting "long-standing trust" in Astra's capabilities.
• Emerged as L1 for AMCA program's Active Antenna Array Unit (AAAU) in a DRDO LRDE tender (along with Bell as L2); contract expected within a month (still FY 2026-2027). Management declined to quantify the AMCA opportunity, noting final production orders depend on consortium partner selection under the DCPPP RFP.
• Order intake visibility of Rs.8,000-10,000 crores over the next 3-4 years from the existing book plus three identified programs: QR-SAM (Rs.700-800 crores for first 3 regiments), Su-30 Virupaksha & Angad (Rs.3,000 crores), and Astra Rafael Comsys JV (Rs.500-750 crores).
• Uttam radar order execution: phase one of 12 units by September 2027 (Q2 FY28), with ramp-up to ~25 units annually; management expects to complete the full order by FY30-FY31, ahead of the mandatory FY32 deadline.
• ARC JV holds an order book of Rs.836 crores as on date, with FY 2026-2027 revenue guided at Rs.360 crores.

15-20% Growth for FY27; Margin Trajectory Maintained

• FY 2026-2027 revenue guidance of ~Rs.1,350 crores (±Rs.25 crores), implying 15-20% YoY growth (management corrected from 10-15% cited in the press release).
• FY 2027-2028 revenue guided at ~Rs.1,600 crores (±Rs.50 crores), representing 15-18% growth over FY27.
• FY27 EBITDA margin expected similar to FY 2025-2026 with a positive delta increase; management cited "global market feedback" that its solution pricing is "fairly competitive" at a "very nice margin."
• Caution on near-term margin specifics — management noted it "cannot commit to specific margins" due to incremental products and potential trade-offs between order size and initial margin in systems/DC&PP contracts.
• Cumulative revenue execution over 5-6 years expected at Rs.8,000-10,000 crores, derived from existing order book and identified programs; this excludes annual repeat orders from regular business.
• For system/DC&PP contracts, management emphasized that overall profitability should be assessed across the product life cycle including AMCs and upgrade cycles, which could yield healthier aggregate returns even if initial margins are lower.

Defense, Space, Meteorology & BrahMos

• Defense segment (66% of standalone OB) — key programs include Uttam radar (Tejas), QR-SAM, Su-30 Virupaksha & Angad, AMCA, and EW systems for Tejas Mk-1A, Su-30, and LCH. Tejas Mk-1A EW orders alone could add Rs.500-600 crores to the order book over four years, not yet included in guidance.
• Space segment: Rs.120-150 crores of FY27 projected sales; Rs.100 crores from DRDO to be executed in Q2 FY 2026-2027. Post-demerger, management plans to launch its own satellite within six months of the new entity listing as part of a constellation, targeting data monetization and international supply chain opportunities.
• Meteorology: supplied 40-45 Doppler weather radars to IMD over the past four years; orders on hand executable over FY 2026-2027 and FY 2027-2028. Under Mission Mausam, expects more orders in FY 2026-2027 with execution over 2-4 years, providing production visibility for 4-5 years.
• BrahMos program — Astra supplies critical RF components for gimbal-based seekers and telemetry products, and is developing the seeker for the BrahMos NG (New Generation) variant, expected to take "a few more months" for completion. Only current production orders are factored into FY27 guidance; management acknowledged a "possibility of upward surprise" from the new program.
• ARC JV revenue of Rs.360 crores guided for FY27; the JV holds an order book of Rs.836 crores as on date, contributing to the consolidated execution pipeline.

Demerger, New Products & Export Push

• Space & weather division demerger effective April 1, 2027 as a separately listed company with identical shareholding pattern; MD SG Reddy will lead the new entity. Post-demerger guidance: revenue > Rs.300 crores with 18-20% PBT margin (period unspecified; likely FY 2027-2028 or later).
• New IP products: two complete radars and one drone-mounted electronic intelligence product expected around Diwali 2026; these are entirely upside and not included in any order book projections.
• Export strategy pivoted to BTS and MMIC components — management exited the BTP (offset) business and now has leads from the US and Europe expected to take 2 years to convert into sizable orders. Complete-solution exports will follow after proving systems in the Indian defense market (1-2 years).
• Revenue target of $350-400 million (~Rs.3,000-3,400 crores) by FY31, with an aspiration to reach $600 million to $1 billion in the subsequent growth phase.
• Successful technology demonstrations in July 2026 for first-of-kind electromagnetic wall and vehicle-mounted anti-drone system in Jalandhar; management labeled these as potential upside but declined to quantify the opportunity.

Supply Chain Stretch; Founder MD Steps Down

• Execution risk from stretched global supply chains — management highlighted "restocking of armaments" globally as a headwind and is strengthening purchase departments to mitigate delays.
• Working capital expected in line with FY 2025-2026; Q1 and part of Q2 typically show better working capital due to prior-year execution, with pressure building in Q3 and Q4 FY 2026-2027. More clarity expected at end of Q3 FY27.
• Leadership transition: Managing Director Mr. SG Reddy announced his departure, passing leadership to Mr. M.V. Reddy and Mr. Asim Kabra, whom he described as "more energetic and young." Mr. Reddy expressed confidence that the new leadership will deliver more than past years.
• Order booking target for FY 2026-2027 reaffirmed at ~Rs.1,600 crores (excluding the Uttam order); management expects to add at least this amount with potential upside from EW systems and new product wins.
• Q1 revenue softness and developmental cycle issues — management emphasized the business is "not quarterly-driven" and remains confident, stating "at the end of the year, we will deliver what we say we are looking to deliver."