1. At a Glance
Astra Microwave is the RF & microwave wizard making fancy subsystems for defence, space, telecom, and meteorology — basically, if it sends signals faster than your Wi-Fi, they probably built part of it. Stock’s up, P/E is flirting with 60, and debtor days? 273. That’s not a working capital cycle; that’s an Olympic endurance sport. Q1 FY26 showed ₹200 crore revenue (-0.1% YoY) and PAT ₹16.27 crore (-0.2x from last quarter). Margins are still respectable, but liquidity? Not so much.
2. Introduction
Imagine you’re at a party. HAL and BEL are the popular kids with 30%+ margins and massive government contracts. Astra’s the quiet one in the corner who builds half their tech for them — but doesn’t always get paid on time. With only6.54% promoter holding, Astra is more “public asset” than private empire, and yet it’s managed a market cap just shy of ₹10,000 crore. This is one of those rare midcaps where the tech is real, but so is the accounts receivable bloat.
3. Business Model (WTF Do They Even Do?)
Astra designs, develops, and manufactures:
- RF & Microwave Components– the backbone of radars, satellite comms, and missile systems.
- Sub-systems– defence-grade electronics for space & weather tracking.
- Full Systems– turnkey hardware for telecom and meteorology agencies.
Their core customers aregovernment and defence PSUs(BEL, ISRO, DRDO), meaning slow payments but guaranteed contracts. Astra’s margins are driven by specialised, high-value systems — but the flip side is lumpy order inflows and big debtor build-ups.
4. Financials Overview
| Metric | Q1 FY26 | Q1 FY25 | Q4 FY25 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 200.0 | 199.7 | 408.0 | 0.1% | -51.0% |
| EBITDA (₹ Cr) | 40.8 | 38.9 | 118.0 | 4.9% | -65.4% |
| PAT (₹ Cr) | 16.27 | 7.20 | 73.0 | 125.9% | -77.7% |
| EPS (₹) | 1.71 | 0.76 | 7.74 | 125.0% | -77.9% |
Annualised EPS = ₹1.71 × 4 = ₹6.84P/E = ₹1,024 ÷ ₹6.84 ≈149.7(screener’s 59.8 is on TTM; this quarter’s slump sends it sky-high).
5. Valuation (Fair Value RANGE only)
P/E methodSector median P/E (Defence PSU + niche) ~ 40 → FV ≈ ₹273/share.
EV/EBITDA methodTTM EBITDA ~ ₹285 Cr, EV/EBITDA median ~ 20× → EV = ₹5,700 Cr.Net debt ≈ ₹424 Cr borrowings – ~₹100 Cr cash ≈ ₹324 Cr.Equity = ₹5,376 Cr → FV ≈ ₹565/share.
DCF (rough)10% FCF growth, 5% terminal, 12% discount rate → FV ≈ ₹450/share.
Fair Value Range= ₹273 – ₹565Disclaimer: Educational purposes only, not investment advice.
6. What’s Cooking – News, Triggers, Drama
- Defence & Space Orders– Ongoing execution for DRDO, ISRO, and meteorology projects.
- AGM on 17 Sept 2025– Dividend of ₹0.20/share confirmed.
- MoA & AoA Changes– Could indicate
