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Astra Microwave Products (AMPL): Strategic re-alignment to unlock long-term growth…

ICICIdirect Research 12 Jun 2026 DISCLAIMER

AMPL has been engaged in the business of design, development and manufacture of sub-systems for radio frequency and microwave systems used in defence, space, meteorology and telecommunication. 
The company has recently approved the demerger of its Space, Meteorology and Hydrology businesses into a dedicated entity (ASTPL), while the existing company (AMPL) continues to focus on defence electronics. The proposed demerger marks a strategic realignment that creates two focused platforms addressing distinct growth opportunities in defence and space electronics.  
The demerger is expected to complete in the next 9 months post that the demerged entity will get listed on exchanges with similar shareholding pattern. We believe the separation will sharpen management focus, improve capital allocation and enable better strategic execution across both the entities. Out of total consolidated order backlog of ₹ 2610 crore, the space & meteorology segments have significant share of ~₹700+ crore (~4.5x FY26 revenue) though it contributes only ~14% of current revenue. 
The strong orderbook provides healthy visibility across all the segments. Though the financials of demerged entity (ASTPL) are yet to come, we believe that space segment is growing relatively better (FY26 revenue grew 75% YoY vs ~11% YoY growth in total revenue) with higher profitability (better than blended EBITDA margin of ~28%). 
The company continues to move up the value chain with multiple Astra-owned products expected to be launched during the year, while the export business is also shifts away from low margin BTP contracts towards IP-driven and co-developed products. Going forward, management aims to 3x its revenue (from FY26 level) in the next 4-5 years, which implies ~25% revenue CAGR, supported by strong order inflow visibility (total opportunity size stands at ₹ 24000-25000 crore till FY28E). 
We value the defence business FY28E earnings (assuming ~85% revenue share with similar margin profile as consolidated margins) at 55x and other businesses revenue (~15% of total) at 10x (in-line with valuations of key private space-tech companies including start-ups). We revise our target price to ₹1725

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