Astra Microwave Products (532493) Q2 25/26 earnings summary

Executive summary

• Delivered strong Q2 and H1 FY26 performance with improved margins, robust order book, and strategic shift toward integrated systems and solutions.

• Over 10 years of revenue growth and profitability, with a diversified portfolio in defence, space, meteorology, and exports.

• Strategic investments in R&D and joint ventures, including ARC and Rafael, drive innovation and global market reach.

• Standalone and consolidated unaudited financial results for Q2 and H1 FY26 were approved, with no material misstatements found by auditors.

• Major deliveries included modules for key radar systems, refurbishment orders, and progress in AESA, Virupaksha, Uttam Radars.

Financial highlights

• Standalone Q2 FY26 revenue: INR 213 crores; EBITDA: INR 46 crores (21.7% margin); PAT: INR 21 crores; H1 revenue: INR 410 crores, up 7.2% YoY; PAT up 13.5% YoY.

• Consolidated H1 FY26 revenue: INR 414 crores; EBITDA: INR 89 crores (21.4% margin); PAT: INR 40 crores.

• Gross profit margin improved to 46.9% (standalone) and 48.8% (consolidated) in H1 FY26.

• Standalone and consolidated cash and cash equivalents increased significantly to Rs. 9,726.59 lakhs and Rs. 10,147.94 lakhs as of September 30, 2025.

• ARC JV contributed INR 7 crores PBT on INR 78 crores revenue in Q2; targeting INR 350 crores revenue for FY26.

Outlook and guidance

• FY26 revenue guidance maintained at INR 1,150–1,200 crores, with gross margins expected to be sustained.

• Management targets doubling turnover in 3–4 years and reaching $1 billion revenue in 5–6 years.

• Targets 15–20% revenue growth over the next 3–5 years, focusing on complex system fabrication and global markets.

• Significant growth expected from QR-SAM, Uttam Radars, Su-30 EW Suite, and Virupaksha projects.

• CapEx needs for near-term growth are minimal due to existing facilities; cash flows expected to improve with scale.