Astra Microwave Q2 Net Profit Soars 113.8% YoY to ₹51.1 Cr as Margins Expand

Key numbers

Market Cap	₹16,587.84 CrMid Cap
P/E Ratio	87.75Sector PE: 51.85
1-Year Return	66.55%Outperforming
RSI (Day)	64.37Bullish Zone

Key highlights

• Net profit surged 113.8% YoY to ₹51.1 crore in Q2 FY27
• Revenue from operations grew 22.3% to ₹263 crore compared to ₹215 crore in Q2 FY26
• Operating margins expanded to 25.6% from 14.7% in the year-ago period
• Order book reached a record ₹4,361 crore following a major contract for Uttam Radar systems
• Adjusted profit showed a significant sequential recovery, rising 499% over Q1 FY27

Aerospace Demand Drives Triple-Digit Profit Growth

Astra Microwave Products delivered a robust performance in the second quarter of FY27, with net profit surging by 113.8% to ₹51.1 crore compared to ₹23.9 crore in the same period last year. Revenue from operations grew by 22.3% to ₹263 crore, supported by strong execution in the Aerospace and Defence segments. The company demonstrated significant operational leverage as operating margins expanded to 25.6%, up from 14.7% in the previous year.

This margin improvement was primarily driven by a more favorable product mix and efficient cost management during the quarter, leading to a sequential profit jump of over 315%.

Order Backlog Supported by HAL Mega-Contract

• Total order book stood at ₹3,937 crore as of September 30, 2026, according to official exchange filings.
• The company reached a milestone order book of ₹4,361 crore on September 24, 2026, following a ₹2,205.23 crore contract.
• Management reaffirmed its FY27 revenue guidance of ₹1,350 crore, targeting annual growth of over 15%.
• Orders booked during the first half of the current fiscal year amounted to ₹2,230.48 crore.
• Service orders contributed ₹251.53 crore to the total backlog, providing high-margin recurring visibility.

Structural Realignment and Business Demerger

The company is advancing its plan to demerge the Space, Meteorology, and Hydrology business into a separate entity, Astra Space Technologies. Management received a no-objection certificate from stock exchanges on October 29, 2026, clearing the path for an NCLT filing. This strategic restructuring is intended to streamline core defence electronics operations and is projected for completion by April 2027.

By separating these distinct business lines, the company aims to enhance management focus on large-scale subsystem contracts as it shifts toward becoming a lead integrator in the domestic defence ecosystem.

Market Performance and Institutional Interest

• The stock maintains a high Durability score of 85, reflecting strong fundamental health and efficiency metrics.
• Institutional holding stood at 27% for the quarter, with mutual funds increasing their stake by 0.21% sequentially.
• P/E ratio of 87.75 remains above the industry average of 48.1, reflecting premium market positioning.
• RSI of 64.37 indicates sustained bullish momentum, with the stock currently trading near its 52-week high of ₹1960.
• Promoter holding remains stable at 6.54%, with zero shares pledged, ensuring high governance comfort for shareholders.

What to watch next

• Demerger completion of Space, Meteorology, and Hydrology business by April 2027
• Execution milestones for the ₹2,205 crore Uttam Radar order from HAL
• Q3 FY27 financial results announcement expected in February 2027
• Achievement of the ₹1,350 crore annual revenue target for FY27

Astra Microwave Products · financial snapshot

Share price	₹1747.1
Market capitalisation	₹16,587.84 Cr
Revenue (annual)	₹1,162.80 Cr
Net profit (annual)	₹192.97 Cr
Revenue (latest quarter)	₹176.66 Cr-63.82% vs previous quarter
Net profit (latest quarter)	₹12.35 Cr-88.35% vs previous quarter
P/E (TTM)	87.75×Sector 51.85×
Promoter holding	6.54%0.00% QoQ
FII holding	10.48%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.