Astra Microwave’s Q4 margin expands as costs trail revenue growth
Consolidated operating margin rose 3.96 percentage points YoY, while the stock’s +9.83% result-day gain exceeded its usual post-results move.
Filed 26 May 2026, 12:05 IST · Astra Microwave Products Ltd (ASTRAMICRO)
Key takeaways
- Consolidated Q4 operating margin expanded 3.96 percentage points YoY to 33.27% as revenue grew faster than expenses.
- Net profit rose +44.21% YoY, helped by a 1.00-percentage-point lower tax rate and a 24.54% fall in interest.
- The stock gained +9.83% on the result date, above its 4.1% median absolute move after the past eight results.
Price around the results
Q4 revenue acceleration widened operating leverage
Astra Microwave’s consolidated revenue grew +19.71% YoY, while expenses rose +13.01%, allowing operating profit to increase +35.86% and net profit to rise +44.21%. Sequential momentum was sharper, with revenue up +87.60% and operating profit up +96.81% from Q3FY26. The cost base therefore expanded more slowly than revenue in both comparisons.
Margin reached a four-quarter high without a large other-income boost
Operating margin improved 3.96 percentage points YoY and 1.56 percentage points QoQ, extending its rise from 20.51% in Q1FY26 to 33.27% in Q4FY26. The lower tax rate supported net profit, while interest fell -24.54% YoY, although it rose +11.21% sequentially. Other income was only 4.29% of pre-tax profit, so it was not the main source of earnings growth. The margin was 17.61 percentage points above the 15.66% median for the 71 Industrials peers that had reported.
Presentation flags restructuring and a sizeable standalone order book
The company’s investor presentation said the board had given in-principle approval to demerge its Space, Meteorology and Hydrology businesses into a separate entity. Management described LEAP as an initiative to develop Made-in-India solutions for global markets using reusable technology blocks and its internal product library. The presentation also reported a standalone order book of Rs 2,141 cr as of 31 March 2026.
Result-day reaction was above Astra’s usual range
The stock rose +9.83% on the result date, with a +0.68% opening gap and a +7.13% return after five sessions. Across the past eight results, the stock had risen four times and fallen four times, with a median absolute move of 4.1%. The latest reaction was therefore notably larger than its recent typical post-results move.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹488 cr | ₹260 cr | +87.60% | +19.71% |
| Other income | ₹6 cr | ₹8 cr | -25.40% | -38.58% |
| Expenses | ₹326 cr | ₹178 cr | +83.33% | +13.01% |
| Operating profit | ₹162 cr | ₹83 cr | +96.81% | +35.86% |
| Operating margin (%) | 33.27% | 31.71% | — | — |
| Interest | ₹14 cr | ₹13 cr | +11.21% | -24.54% |
| Depreciation | ₹13 cr | ₹11 cr | +14.08% | +16.86% |
| Profit before tax | ₹141 cr | ₹66 cr | +112.86% | +42.29% |
| Tax | ₹35 cr | ₹19 cr | +80.35% | +36.74% |
| Net profit | ₹106 cr | ₹47 cr | +126.40% | +44.21% |
| EPS (₹) | ₹11.16 | ₹4.93 | +126.37% | +44.19% |
Operating margin of 33.27% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +9.83% | +10.32% |
| Next session | +13.09% | — |
| 5 sessions | +7.13% | +9.74% |
| 15 sessions | +27.42% | — |
| 30 sessions | +48.36% | — |
Volume on the results session was 23.96× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
New orders
- Astra reported a standalone order book of Rs. 2,141 crore as of 31 March 2026.
New initiatives
- The board has given in-principle approval to demerge the Space, Meteorology and Hydrology businesses into a separate entity.
- LEAP aims to create high-tech, Made-in-India solutions for global markets using reusable technology blocks and the in-house product library.
What to watch
- Whether consolidated operating margin holds above 33.27%.
- Whether revenue growth remains ahead of expense growth after the YoY gap of +19.71% versus +13.01%.
- Updates on the standalone order book from the Rs 2,141 cr level and the proposed demerger.