Astra Microwave margin drops to 18.72% as Q1 revenue falls 11.55% YoY
Costs fell less than revenue, while other income contributed 34.14% of pre-tax profit.
Filed 10 Aug 2026, 13:14 IST · Astra Microwave Products Ltd (ASTRAMICRO)
Key takeaways
- Consolidated operating margin fell 1.79 percentage points YoY to 18.72% as expenses declined less than revenue.
- Consolidated net profit declined 24.09% YoY to Rs 12.35 cr, while other income contributed 34.14% of pre-tax profit.
- Management said the standalone order book was Rs 2,156 crore as of 30 June 2026, while Q1 orders totalled Rs 172.6 crore.
Price around the results
Q1 revenue reset after the March peak
Consolidated revenue fell 11.55% YoY and 63.82% QoQ, with the sequential decline amplified by the high Q4FY26 base. Operating profit fell 19.26% YoY, showing that the lower revenue translated into a sharper profit decline. The year-on-year comparison is more informative for this quarter than the sequential comparison against the March year-end peak.
Costs pressured margins despite lower interest
Expenses declined 9.55% YoY against the 11.55% revenue decline, so operating margin narrowed by 1.79 percentage points. QoQ, expenses fell 55.93% while revenue fell 63.82%, driving a much sharper 14.55-percentage-point margin drop. Interest expense fell 25.91% YoY, but depreciation rose 27.30%, limiting the benefit below operating profit. Other income accounted for 34.14% of pre-tax profit, making reported earnings less dependent on operating profit than the headline net profit suggests.
Margin reverses after four quarters of expansion
Operating margin had risen each quarter from 20.51% in Q1FY26 to 33.27% in Q4FY26 before falling to 18.72% in Q1FY27. Despite the reversal, Astra Microwave remained 4.08 percentage points above the 14.64% median operating margin of 87 Industrials peers that had reported the same quarter.
Order book and business changes remain the key management themes
Management said the standalone order book stood at Rs 2,156 crore on 30 June 2026 and that the company received a Rs 93.6 crore radar production order from BEL during Q1FY27. The company said total Q1FY27 orders were Rs 172.6 crore. Management also said the board had given in-principle approval to demerge the Space, Meteorology and Hydrology businesses, while the presentation described LEAP as a framework for developing Made-in-India solutions for global markets.
Current reaction is too fresh; past moves were evenly split
The stock's current post-results reaction is too fresh to assess. Across the last eight result windows, it rose four times and fell four times, with a median absolute move of 4.10%. That history provides no directional pattern, but shows that a typical results-day move has been around 4.10% in absolute terms.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹177 cr | ₹488 cr | -63.82% | -11.55% |
| Other income | ₹5 cr | ₹6 cr | -11.24% | +32.27% |
| Expenses | ₹144 cr | ₹326 cr | -55.93% | -9.55% |
| Operating profit | ₹33 cr | ₹162 cr | -79.64% | -19.26% |
| Operating margin (%) | 18.72% | 33.27% | — | — |
| Interest | ₹11 cr | ₹14 cr | -25.35% | -25.91% |
| Depreciation | ₹12 cr | ₹13 cr | -8.26% | +27.30% |
| Profit before tax | ₹16 cr | ₹141 cr | -88.85% | -25.34% |
| Tax | ₹3 cr | ₹35 cr | -90.33% | -29.37% |
| Net profit | ₹12 cr | ₹106 cr | -88.35% | -24.09% |
| EPS (₹) | ₹1.30 | ₹11.16 | -88.35% | -23.98% |
Operating margin of 18.72% compares with a Industrials sector median of 14.64% across 87 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The standalone order book was Rs. 2,156 crore as of 30 June 2026.
Guidance & outlook
- India aims to capture 8% of the global space market by 2033.
Expansion
- The standalone order book was worth Rs. 2,156 crore as of 30 June 2026.
New orders
- The company received a Rs. 93.6 crore radar production order from BEL, Bangalore in Q1 FY27.
- Major orders received in Q1 FY27 totalled Rs. 172.6 crore.
New initiatives
- The Board gave in-principle approval to demerge the Space, Meteorology and Hydrology businesses into a separate entity.
- The LEAP framework will create high-tech, Made-in-India solutions for global markets using reusable technology blocks and the in-house product library.
What to watch
- Whether operating margin recovers from 18.72% after the 14.55-percentage-point QoQ decline.
- Whether expenses continue to fall faster than revenue after declining 9.55% YoY versus revenue's 11.55% decline.
- Progress in converting the standalone order book of Rs 2,156 crore and the Rs 172.6 crore of Q1 orders into revenue.