Astra Microwave demerging space unit after a year of strong growth
Q4 profit jumped 40% to ₹105 crore. The board now wants to split off its space and weather-tech business into a separate company.
— 3 earlier stories on Astra Microwave Products Ltd. →What's new
- Q4 revenue rose 20% to ₹487 crore; net profit jumped 40% to ₹105 crore.
- Full-year EBITDA margin expanded 250 bps to 28.0%; dividend raised to ₹2.40/share.
- Board gave in-principle approval to demerge its space, meteorology, and hydrology operations.
Why this matters
The demerger is the real move here. It separates the high-growth, investor-friendly space business from the core defence-electronics operation, giving shareholders two distinct bets and management two clearer mandates. Coming on the back of a strong earnings year, it signals confidence in both units' standalone viability.
What we're watching
- Timeline and structure of the demerger — in-principle approval is just the first step.
- How the ₹2,610 cr order book translates into execution in FY27.
- Whether the separate space entity attracts different investor interest than the parent.
The full read
Astra Microwave's FY26 results were strong: profit climbed 24% to ₹178 crore on 11% revenue growth to ₹1,156 crore, with margins expanding 250 bps to 28.0%. Q4 was even better, with profit up 40% to ₹105 crore. But the headline is the board's call to split the company. The space, meteorology, and hydrology business will be demerged into a separate entity, a move that gives investors two pure-play stories and management sharper operational mandates. The consolidated order book stands at ₹2,610 crore, supporting management's guidance of 10-15% topline growth for FY27. The dividend is up to ₹2.40 a share. The demerger is still at in-principle stage, but it is the first material strategic move from a management team now running a cleaner, faster-growing business.
Questions answered
- What are the financial results that accompanied the demerger announcement?
- Q4 revenue grew 20% to ₹487 crore and profit jumped 40% to ₹105 crore. For the full year, revenue was up 11% to ₹1,156 crore and profit up 24% to ₹178 crore, with margins expanding 250 basis points to 28.0%.
- What business is being demerged and why?
- The board approved splitting off its space, meteorology, and hydrology operations into a separate entity. The stated aim is to sharpen strategic focus and create clearer investment propositions for shareholders.
- How large is the current order book relative to last year's revenue?
- The consolidated order book is ₹2,610 crore, which is about 2.3 times the ₹1,156 crore in revenue booked in FY26.
- What is the dividend per share this year?
- The board recommended ₹2.40 per share, up from ₹2.20 a year ago.
Story so far
All notes on ASTRAMICRO →- 26 May 2026 · 4:53 PM IST Astra Microwave demerging space unit after a year of strong growth
- today Astra Microwave carves out its space business for a separate listing
- 14d ago Astra Microwave cuts FY27 revenue guidance by 7%
- 15d ago Astra Microwave profit jumps 24% as Q4 momentum builds