Defence Manufacturing: 2 Defence stocks sign MoU for electronic warfare and radar systems

Synopsis: Astra Microwave has signed MoU with Bharat Electronics Limited (BEL)  to collaborate on design, development and manufacturing of advanced electronic modules, subsystems and systems

The shares of this small-cap company majorly engaged in supplying high-value-added RF and microwave super components to defence, space, telecom, were in focus after signing MoU with BEL to collaborate on synergies.

With the market capitalization of Rs. 9312 Crores, the shares of Astra Microwave were trading at around 981 per share which is 18 percent discount from its 52 week high of Rs. 1195 per share and is trading at a P/E of 57.8 whereas industry P/E stands at 60.8 

What is the NEWS: 

Astra Microwave has recently signed an MoU with Bharat Electronics Limited to collaborate on design, development and manufacturing of advanced electronic modules, subsystems and systems.

The collaboration will majorly focus on defence electronics and aerospace applications, specifically targeting critical technology areas such as Electronic Warfare (EW), radar systems and satellites. 

About the company and Financials 

Astra Microwave products Limited is majorly engaged in supplying high-value-added RF and microwave super components to defence, space, telecom whose total order book as of Q2 FY26 amounts to Rs. 1916 Crores out of which defence sector  contributes 70 percent of the total order book, space contributes 12 percent,Meteorological contributes 11 percent  and remaining is contributed by Exports. 

Defence segment contributed majority of the revenue of 77.4 percent in Q2 FY26 whereas space,meteorological and exports and contributed 2 percent, 5.8 percent and 14.2 percent respectively  

Year on Year analysis: Revenue from operations has decreased  from Rs. 230 Crores to Rs. 215 Crores, down 6.5  percent. Operating profit has decreased from Rs. 49 Crores to 48 Crores, down 2 percent and net profit has decreased from Rs. 25 Crores to 24 Crores, down 4 percent. 

Quarter on Quarter analysis: Revenue from operations has increased from Rs. 200 Crores to Rs. 215 Crores, up 7.5 percent. Operating profit has increased from Rs. 41 Crores to Rs. 48 Crores, up 17 percent and net profit has increased from Rs. 16 Crores to 24 Crores, up 50 percent. 

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