Ladies and gentlemen, good day and welcome to the Astra Microwave Products Limited's Q1 FY26 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touchtone phone. Please note that this conference is being recorded. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. I now hand the conference over to Mr. S. Gurunatha Reddy, Managing Director of Astra Microwave Products Limited. Thank you, and over to you, sir.
Thank you, and good evening, everyone. You're all welcome to the participants to the fourth virtual call of Q1. I'm with my colleagues Mr. M. V. Reddy, Joint Managing Director, and Atim Kabra, Director of Strategy and Business Development, and the Investor Relations Advisor, S. Gurunatha Reddy. The results from the investor presentation for the Q1 FY2026 are already uploaded on the company website and stock exchanges. I hope you had a chance to look at it. I am pleased to report that we had a strong start to FY2026. For the first quarter, on a standalone basis, we saw a solid increase in our top lines at INR 197 crore, growing by about 28.1% year-on-year. Our other profit margins have also gone up. These numbers highlight the strength of our core business.
When we look at our industry today, it is clear that the Indian defense sector is going through a significant transformation. The Government of India has taken several progressive steps in recent years to strengthen the domestic defense manufacturing ecosystem, including liberalizing foreign direct investment limits, promoting indigenous design and development, introducing the defense testing infrastructure scale, and giving priority to domestic procurement. These initiatives reflect a clear and determined commitment to build a self-reliant, globally competitive defense industrial base. The results of these efforts are already visible. The increase in India's defense budget clearly demonstrates government's intent to rapidly build a national capability. The policy direction has also opened new opportunities for private sector players, enabling us to set up investments, scale up innovations, and participate more meaningfully in critical national programs.
Our standalone order book now stands at INR 1,891 crore, giving us strong visibility for the coming quarters. Most of these orders are built to spec in nature, which means the value add is higher as compared to built to print. Also, we are making significant steps and investments to get into radar systems, not only for defense but also into weather applications. We are a significant player in competing for a business opportunity in the Project Mawsum program of the Government of India, which requires the deployment of these radars across the country in a phased manner. This initiative is expected to generate recurring orders in the coming years. Apart from weather radar, over the medium term, we see opportunities, particularly in lightweight low-level radars, anti-drone radars, and ground penetration radars.
In Q2, we received an important order worth INR 135 crore at a gross value from the Defense Research and Development Organization in August 2025. This project involves upgradation of ground-based radar systems. Further, we remain committed to advancing indigenous innovation across the defense space and the metropolitan sectors. Backed by a strong order book and significant order booking opportunities in the near term and a deep focus on execution, we are confident in our ability to sustain growth and create long-term value in the quarters to come. In the last few years, we have made conscious and strategic investments to diversify, both in terms of technology and sectors where we are in. We are also now building a strong and credible presence in the space sector. Our standalone order book includes about INR 239 crore of orders from the space sector.
These comprise high-quality, complex combinations of systems that require traditional engineering, reliability, and a deep technical know-how, areas where Astra has consistently delivered. As you are aware, we have incorporated a wholly owned facility by name Astra Space Technologies Private Limited recently to focus in space business in a bigger way, and have already taken steps to recruit skilled manpower and to establish clean and assembly rooms for assembly and integration of small-sized satellites. These operations will be carried out from our Bangalore facility with support from Hyderabad Space Division, which has more than 20-plus years of experience in supplying under BTS and BTP mode various electronic combinations of systems required for ground and onboard applications. In terms of group companies' performance, our wholly owned subsidiaries are doing well, though they are largely selling our captive consumption needs.
Our joint venture company, Astra Rafael Comsys Private Limited, too, has done well during the quarter and is prospect drives for the coming years. It has an order book of INR 400-plus crore as of today and is expected to do about INR 350-plus crore of top lines with a PBT of around 10% for the year. It has potential to back those orders. It has potential to back close to about INR 800-plus crore of orders during the rest of the year. It is now a handover to Mr. M. V. Reddy, Joint Managing Director, and later on to Mr. Rashin Sabra, who will give more insight into new initiatives, product development, and business outlook in the near and long term on the strategies adopted by the company to take this to the next level of growth cycle. Mr. M. V. Reddy, thank you as well.
Good evening, ladies and gentlemen. As Rajeev mentioned, we started FY26 with a decent performance in the first quarter, as we are almost on track towards reaching out the projected order inflow as well as sales for this quarter. I will be sharing a few key achievements and business updates of this quarter. Regarding order book, as we mentioned, we are at INR 1,891 crore as of 30th June, and we have received a worth of INR 150 crore in July. Also, we are concluding negotiations of INR 150 crore more worth of orders and INR 100 crore more orders are in pipeline. In all, these orders are expected to be received in Q2. In Q1, we have booked a significant development contract like active anti-drone units for Lulu Paksha from DRDO, and all other orders are production in nature from domestic markets in radar, EW, and metallurgy domain.
With regard to sales, we are aligned with our target, and we don't see any major challenge meeting our targets of current financial year. During the quarter, we have built major products, including ATLAS and Rohini modules for BEL and medium-range tracking target radar for DRDO, RF modules for defense satellites and for EFROS, X-band Doppler-based radar for metallurgy, and a few other defense communication products for DPSUs, underscoring our timely execution and delivery capability. I am also happy to share a few other key achievements of the last quarter, which include successful completion of site acceptance tests of first-ever developed photonics radar by DRDO, which has a maximum contribution from our companies. Also, we have got technology from DEAL. This is called the CTCS, which is a compact transhorizon communication system, where we're currently working on that.
Our JVC, our strategy finance clear with marginal profits made in Q1, as the majority of sales were shifted to the current quarter due to a few supply chain issues and the delay in customer acceptance. However, we are confident of meeting yearly guidance, a part of the inflow being projected in the beginning of the year, and also sales, we would be achieving as per the guidance. ARC is actually pursuing more opportunities in the domain of tactical communication and electro-optics, as we have been informed in the previous calls, and expected to grow at a rapid pace with the initiatives being taken to strengthen it in all aspects. As Rajeev mentioned, we are expecting close to $100 million worth of orders before March 2026.
With a strong order inflow, healthy pipeline, and strengthened technology capabilities, we are confident of delivering consistent growth and creating long-term value for our stakeholders. Our focus remains on executing existing strategically important contracts, which we bag from DRDO, like for Tableau for SCM Mark II and also for Lulu Paksha. These are all very critical orders, and we will be focusing to execute efficiently by leveraging new opportunities in defense, aerospace, satellite, and metallurgy market segments. That's all from my side. I would be happy to answer your questions. Now I'll hand over to Mr. Atim Kabra.
Thank you, Ajay, and thank you, India, and good afternoon, everybody. Things are looking good, and I have often spoken about our vision and what we intend to do to ensure that we thrive and grow and deliver value and create value over the next multiple decades.
As you know, to gaze into the future and to move forward, we have to understand where we are and how we have evolved into what we are today. The vision of the Directors of Astra has been to create an extremely well-diversified, multi-revenue, multi-tech-driven, deep-tech company that has created today the foundation for, I would say, a multi-decadal growth opportunity and at a pace that can be welcomed by all of you. What has been created by the original founders of Astra, and hats off to them, and built upon by the current Board and management is nothing short of a prime example of how tech trends need to be captured in time and concerted action taken to capitalize on the opportunities that present themselves.
I'll delve a little bit on the various product lines which we have to define for you very clearly that how Astra is an extremely well-diversified company, which is critical from a risk management perspective and from the point of view of capturing multiple revenue streams which will come in from many areas as we progress. Did you know that Astra moved into MMIC chips more than two decades back? These are the basic building blocks of TR modules that are the backbone for most of our core products. We have today a portfolio of more than 40 chips, and we are focusing on building them up and upgrading quite a few of them to compete in the global markets where potential exists to sell chips in excess of $50 million or more over the next five years or so from this portfolio alone.
You have already seen the global relationships which we are trying to put together, Teledyne, etc., to enable these sales on a global basis. Astra set up its space business, which was spoken about by Rajeev right now, in excess of INR 225.3 crore is our order book. We set up the space business more than a decade back, and that is the foresight which the management had, and credit is due to the management team for doing so then. In the space sector hardware supply chain, Astra has a very spread-out presence across the spectrum. We make critical components, have extensive test facilities to ensure the space virginess of our products. We make critical subsystems. We contribute significantly to multiple payloads, be they in the communication area or be they star-enabled payloads.
Astra has been beefing up its satellite bus design capabilities, and we have a clean room, which, as we mentioned, to assemble small satellites in our Bangalore unit near Reddy. We have made a conscious decision for now not to go in for launch vehicles, but we already have a presence in the ground station capability in the ground station segment. What I'm trying to paint is that we have a capability which exists across the entire spectrum of satellite hardware, and we intend building up significant capability in data monetization space too to provide a complete satellite-based data ecosystem. It was in recognition, I must mention, of our capabilities that one of the leading defense PSUs recently had formed an STD with us to bid for a specific space vendor, and we hope that we'll collaborate with them and others in our space-related endeavors going forward.
Our order book, as you mentioned, is in excess of INR 230 crore over there. Given where companies with very limited indigenous capabilities are valued, you might find that our space business is actually very, very valuable. Similarly, when we talk of our diversified order book and product portfolio, it would be very necessary to highlight our capabilities in meteorological and hydrological sector. We just heard about Project Mawsum with an allocation of more than INR 2,000 crore. At this point in time, I, and we can correct me, but I think out of 14 Doppler radars which are installed in India, 13 are from Astra. Many more are in the offering, and we make wind profilers.
We have more than 2,000 installs of automatic weather stations, and we build our ground station capabilities on the back of this data overhaul backbone, which allows us to collate the data from remote locations and download them into the servers of IMD. We are not resting on our laurels here. We are refining our weather products continuously. We are building indigenous software capabilities to interpret these signals which are captured. In the end, we want to offer not just hardware, but complete weather as a service, data as a service to the rest of the world for the benefit of all. It is a nice, sizable, scalable business. We expect that in the next two years, you should have an order book in excess of INR 400 crore, INR 500 crore from these segments alone. That is the strength of Astra's capabilities across the board.
Our first AI initiative is almost ready, where we intend using AI to help predict the weather with a fairly high predictive accuracy. That makes for a complete solution from Astra's stables. If you notice, I have been spelling out all the potential from our non-defense businesses, which on its own is probably in excess of twice our current turnover. If this business is growing, we are successful, very, very successful over the next four to five years. You saw the strength of Astra. I'll repeat, lies in being a very well-diversified company, which provides an insulation layer to the main aerospace and defense segment, where the timelines can go a little bit decided at times. We spoke about ARC, our JV with Rafael Israel in SDR.
There are not too many successful joint ventures of the nature, which are scaling up nicely and contribute to our consolidated bottom line consistently. This is a testament to the fact that we don't even, we don't have not only, we have not only the required capability, but we are able to source tech and indigenize it to a certain extent for creating value. It is expected, in my opinion, and again, I mean, as you can chip in on this, that we will have an order book in excess of $100 million in this from the JV alone pretty soon. Please watch this fairly carefully as this is a profitable diversification for our shareholders.
In our core business, if I talk about that now for a second, we are now creating platform capabilities on the back of a deeply backward integrated capability set, which has been built up over decades. We make the MMIC chips, we make the TR modules, we make the radars, be they for ground forces, be they for airborne platforms, and be they for the Navy. We have, and it's not just us. Astra Microwave Products Limited has proved itself repeatedly with complex projects completed in collaboration with our defense labs. We have successfully delivered what we have just mentioned, shipborne radars over the last 12 months. Much has been spoken about radars to be deployed in stages, where we competed amongst the best. Dare I say, there are saying that almost all parameters, we did well.
Proudly made in India, radars have performed very well, thanks to the efforts of our scientists and research labs. There is a need to promote, I would say, domestic tech in the face of competition, which is global. At the same time, a very fine, delicate balance needs to be maintained between the needs of the armed forces and timely and successful deliveries on multiple platforms as we will all age. These plays, you know, but it's not just India. The planes need to be upgraded across the world, and we are very seriously looking at how do we go into that segment now, building on the platforms which we have in sight and have completed.
On the totally 100% Astra Microwave Products Limited radars, I'm laying much hopes on the promise of our R&D team that they will deliver at least three new radars, which this year, which have a massive market, both globally as well as within India over the next 12 months. Let's see the delivery timeline. This adds to our product portfolio significantly and 100% of our products. Right from the PCBs, the software, to the RDP, to the software which integrates it all, everything will be through our own supply chain, which we shall create for our own products. That is when we hit the globe and market our solutions. This is an extremely fast developing market where the efforts of scientists, be it our BDRs, BPSUs, DRDOs, are now coming up with products which are world-class, second to none, and 100% Indian.
I think in a multipolar world, which demands supply chain resilience, self-reliance is a key, as we all know. We are not focusing only on indigenous tech. We need to collaborate with partners, as we demonstrated in the case of ARC, our JV with Israel, Israel Defense. We are focused on collaboration from partners and product lines where we don't have a significant presence, but there's a timely need for the products to be delivered. Our focus will be on commercialization of indigenously developed technology. It would be incomplete to not speak about the latest anti-drone systems which Astra Microwave Products Limited is developing. We are focused on long-range jamming detection and multidirectional jamming, which should hold us in good stead. I can safely say that at this point in time, there are more than three dozen programs in which Astra is participating in various anti-drone systems, RFIs, etc.
We see this both as a domestic and export market. If I gaze into the future, what are we talking about? This has been, I think, established as the fact that we are a very well-diversified company with significant and sizable business in our non-core business, if I may. I define them as non-core, though I think they are as integrated with us as possible. MMIC chips, that's where, as we move into the semiconductor space, as miniaturization takes hold, digital takes hold, MMIC will play a very, very important role. We have already signed one equity participation linked transaction with a chip development company, and another one should be closing very soon. That's the kind of elite strategy, lean and learn and collaborative thing which we have always spoken about.
Over three decades, the base which we have created and the basic building blocks which have been put in place over the years are now being utilized to create complete platforms where Astra is extremely well positioned. We have spoken about Europa. I think we have scored some very positive moves over there, which can itself result in a business which is more than twice our entire turnover when productization commences. I let that sink in for a second. These are the kind of orders which are going to be coming in now. In a very well-diversified multiple platform company with four building blocks which are already in place, I think we are in a fairly decent position.
I have a feeling that the businesses, I've not calculated it exactly, but what I've spoken about today itself adds up to a potential in excess of INR 4,000, 5,000 crore over the next five, six years. This is, by the way, besides our regular revenue lines. The future indeed looks bright. That's a sizable growth if I'm talking about over the next five years. Our focus remains on breaking up the massive potential into executable pieces and a razor-eyed focus on delivering the numbers without faith. Let the numbers speak for themselves and single out the leading players in the industry. We are covering a niche space of our own alongside the large, much larger defense PSUs and the defense labs, which are our esteemed partners. We would prefer to deliver more than talk, and with that, let's open the field for questions. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, please press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Amit Dixit from Goldman Sachs. Please go ahead.
Yeah, hi. Good evening, everyone, and thanks for the opportunity. Congratulations for a good set of numbers in the start of the year. My first question is around the order inflow. In the prepared remarks, you mentioned a number of INR 800 crore. I just wanted to understand whether it is the residual order inflow that you are mentioning, or is it the total order inflow? Also, if you could break it up into different segments like radar, EW systems, that would be great. That is the first question. The second question is on Uttam Radar. Have we received the order for this, for the system that we were trying to, that we were going to supply? If not, then, you know, when do we expect to receive this and what could be the content of this order in this year?
Your honor, regarding this order book of INR 800 crore, this we have referred to in case of a joint venture company. Just to clarify, it is expected to book additional INR 800 crore of orders during this financial year.
Yeah, it is.
Yeah. Mr. Atim, regarding Uttam Radar, as we understand, Bharat Electronics Limited, you know, they are increasing the order quantity on imported systems in view of delaying few tests of DRDO is the reason what's being quoted. We have been pursuing it at every level, and they've been saying that in the first phase itself, at least some quantity can be definitely injected. One of the things is that today we are not in the position to tell when and how much quantity can be injected in the phase one. We are expecting at least 10 to 12 numbers for which LST has been given by Similac. At least that quantity, DRDO, I think they are trying with Hindustan Aeronautics Limited and all, but too early to mention about that.
Otherwise, the second phase, 9 to 7 numbers, definitely, I think DRDO is very confident that, you know, this particular radar can be injected in the HVMARK 1A. We are hoping to see that particular time. We cannot inform, like, you know, exactly how when this can be injected and what is the quantity and all. Only time can tell. Maybe in the next three to four months, I think we'll be in the position to inform you exactly on the Uttam.
All right. Just to clarify, about what would be the order inflow that we expect this year for the main company?
Yeah. For Astra, actually, we have given guidance of around INR 1,300 to 1,400 crore, out of which we have booked as on date, that is up to now, we have booked around INR 250 crore, including INR 137 crore of Q1, plus additional orders we booked in July, as I mentioned, about INR 115 crore plus another INR 20 or 30 crore. Total, we have, I think, booked around INR 250 crore as on date in this financial year. We are quite confident to book another INR 1,100 crore or so by March 2026.
Perfect. Thank you so much, and all the best.
Thank you.
Thank you. A reminder to the participants, please press star and one to ask a question. The next question is from the line of Niraj Manzinga from Whitespine Investment Management. Please go ahead.
Yeah, you have thought about receiving Lulu Paksha order in the order. What was the value of the order for Lulu Paksha?
Value, I cannot mention in the open discussion, but we have received two numbers of Tableau. Actually, we and Bharat Electronics Limited shared the quantity. We received this contract, and we started execution.
received two and Bharat Electronics Limited received two, or it's one-one each?
Two and Bharat Electronics Limited received one.
Okay. What does it imply? This is more like a transfer technology test. Is it just the products, or is it just which phase is it? Like it's more like a testing phase for the product?
It's a development contract. We have been developing Tableau in collaboration with DRDO.
Okay. Can you also share something about the anti-drone radar? You've talked about three dozen programs where you have participated. Can you tell us, over a longer period, what can be the potential opportunity in those programs combined?
Should I open this?
Yeah, yeah.
Guys, I think the very paradigm of warfare has changed, and drones are now at the forefront.
Okay.
As we speak, probably every army in the world is trying to figure out how to incorporate drones as a key part of their warfare, and as a parallel, how to incorporate anti-drone systems, both on the civilian side as well as on the military side, to prevent the drone from causing havoc. We expect there are multiple reports I've seen in terms of estimates of the total potential business. Probably, this is one of the massive, and they are all over there in terms of numbers, right? It is probably one of the most critical developments in the field of military, which has happened over years. We decided instead of drones, which have a full range, right? Some of them are commoditized. Some of them are highly specialized.
We would focus on anti-drone systems, which are capable of taking down the cheap, commercially available drones which come in in a regular frequency, to drones which come on non-standard frequencies. I must tell you that we are one of the few companies we have the capability to create jamming solutions in non-standard frequencies. Overall, long range. Quarter range, there's a fair amount of competition. I think the winners will be distinguished between the range and where you can accomplish, what bands you can block, etc., etc. It matters, we don't know who will get what kind of an order, okay? I think the fact that in six months, we participated in more than three dozen RFIs itself speaks volumes about the kind of potential which exists, not only here, but globally also.
Thank you. Thank you. I think the reason why I asked was because it's quite a large, wide guest of the year. I thought I'll welcome you to the.
Honestly, it is. We are very excited about that.
Got it. Can you just give us some more color on the two programs? One is talked about ground penetration, and the second one is seed-based radar. I thought about the order book as vendor that very few companies can make.
Yeah, that's a cool thing.
Yeah. Amit?
Yeah. As a Shabban radar, the development contracts which we have received from DRDO, which is almost in the final stage of execution. By December 2025, we are likely to complete our part of, you know, testing and make acceptance and all. NavIC, I understand NavIC is showing interest in getting more similar Shabban radar, but these are all in discussion stage. I think it is too early to comment on the quantity and as well as the business, how much business we can get for on business on this particular project. Regarding drone penetrating radar, yes, we have developed a handheld drone penetrating radar. We have made a prototype, and now we are developing an engineering model, which is likely to get completed in the next couple of months. We are participating in a few RFPs.
I think probably we start giving them demo from September, October onwards so that we are likely to book a few orders, at least by March 2026.
Oh, that's wonderful. Last one, small question on the SD and then the seed-based. How much would be that module should weigh?
It all depends on the configuration. We can't say that this is a particular PR model because it's on a particular ship. The range is all determined by the range and the ship on which they wanted to mount it and the size of the radar. There are so many other parameters to be looked into to decide on the number of PR modules.
Oh, sure. If there are larger fixed-ship, ship-based ships, and please, pardon my ignorance, if there are larger fixed-ship, ship-based ships, also you would still be participating considering that you have made a smaller version of the fixed SDR? Is it right, your understanding?
Yeah, we can participate in the larger program also.
Oh, that's a larger opportunity. Okay.
Thank you. A reminder to the participants, please press star and one to ask a question. The next question is from the line of Rupesh Patya from Sri Rama Managers PMS. Please go ahead.
Thank you. Thank you for the opportunity, sir, and good set of numbers. I think my first humble commitment, sir, is in one-hour call. I think management is taking 30 minutes. If we can find a way to shorten that and give more time for questions, that would be very helpful. That is my first humble suggestion. My first question, sir, is in one of the slide presentations, you have said that you are working or supplied developed some AESA X-band seeker. Can you just give some idea about if you get the missile, which missile is it? At what stage that program is? Is it in like development stage? When that program is likely to commercialize? How many missile requirements is there with the fortress?
Yeah. The X-band seeker, we have already delivered to DRDO, and it is successfully mounted, qualified, tested. We got a follow-on order also, which is under execution. Unfortunately, I cannot give you the names of missile programs because of the confidential in nature. The potential is huge. In fact, the discussions what we are having, at least we are expecting more than 50 to 60 numbers in the next two to three years' time frame.
Okay. That is helpful. Another second question, sir. I think in the KUSHA program, you all said that you supply components for the radar. How about missile? Do you supply some components to missile first?
No. For KUSHA, we don't have any subsystems for the missile segment. For the radar, we have COMP subsystems.
Where is that program in your view? When will the commercial production of that program, let's say, start in your view?
It's in development stage. In all probability, I think in the next couple of years, we should, the DRDO, BEL, and VDL should be in the position to complete that prototype maybe in the next couple of years. This is in a development stage as of now. I cannot comment exactly on time zones because we are not the prime party to execute the system on it. We are only supplying subsystems to that program.
Okay. Okay. That is helpful, sir. The other question, sir, is, I mean, obviously, Lulu Paksha is a larger opportunity compared to Uttam Radar, given there are 262 names. It also looks like there is competition at the integrated radar level. I feel, at least whatever tenders I have seen, it looks like there is competition at the CRM or styles level also. Can you give some view about competition? I mean, other than that you have done it for Uttam, what is our right to win? How can we make sure that we get lion's share in Lulu Paksha radar?
Yeah. Actually, if you look at the Lulu Paksha radar, there are many subsystems out there. Like one is the Tableau, which is Active Anti-NRA unit. This is a tiny version, which, as I mentioned, we and Bharat Electronics Limited have received the contract in a competitive tender. Apart from that, we are also developing the Tableau in plank version also. That's based on the Uttam technology. In fact, both are going in parallel. They are trying to explore whichever the technology gets into that, so that will be a mixed production line. We are training to both the versions. Apart from that, of course, there are other subsystems like in EW, sorry, yeah, EW suite, and then other components. Few components like multi-channel executor receiver, which other companies have won.
You know we are going to bid for some more subsystems, which is like RPU, and there are a few other subsystems out there. There are many subsystems, but Tableau is a major subsystem, which is almost like, I would say, 55- 65% of the entire radar.
I mean, at least from a technology point of view, is this plan-based radar better or is style-based radar better?
Actually, as the technology is concerned, DRDO is, like, you know, they're exploring to utilize the style version. It all we need to work out, and based on the specifications, what we can get and the technology can evolve, I think the DRDO can take a decision. Mostly, it is a style version only as of today.
Okay. Another question, sir. Recently, Bharat Electronics Limited and BEL received an INR 1,000 crore or INR 2,000 crore contract for Air Defense Fire Control Radar. It is for which platform? Given how strong we are in radar, are we involved in that program? What kind of contribution can we expect in this Air Defense Fire Control Radar contract?
Yeah. In fact, I wanted to give you a pleasant surprise by quoting this, but I missed out in my opening remarks. Yes, we are there in this program, and we are a part of this program. We have been supplied almost 50%- 60% of subsystems like TR modules in this program. We are likely to get orders very soon by the next couple of quarters.
This is for which application, which platform, and tell us around that.
I think that's enough. You know, fire control radar is here, and this is a lightweight radar being used by the army. Anyway, I think this is some supplier. Probably Bharat Electronics Limited can give more information about the radar action.
Guys, let's give us a chance also to ask questions. You are most welcome to contact us. As far as your opening thing is concerned, I've received four SMSs of our workers right now that they expect us to talk more about our strategy rather than limit ourselves because this is probably the chance for everybody to understand the vision.
Everybody.
Maybe you should extend the time of the call, sir. I think then maybe we should extend, keep the 90 minutes call, sir. Yeah.
We will request you to contact us for more answers individually. Let's give others a chance also, please.
Okay. Okay.
Thank you.
Thank you. Thank you. A reminder to the participants, please press star and one to ask a question. The next question is from the line of Parag Bhatia from Sukrit Investments Private Limited. Please go ahead.
Hello. Thank you for the opportunity and congratulations for a great set of numbers. I just wanted to touch upon two things. One, we believe that the SDR trials for our JV ARC have come out with flying colors. Could you provide any more clarity as to when we would win the bid or are we bidding for that? That is the first question. The second is, are we participating in the Myanmar government, I mean, with the Myanmar government for radar technology that the Myanmar military would be using, especially, I think, for a trusty low-level lightweight radar? If you could just throw some light on that. Thank you.
The first question, yes, ARC is qualified in the initial trials. The final trials are going to happen soon. Yes, we are confident of getting through those final trials also, and we will be in competition for the price bid opening. That is the first answer to your first question. As far as the second question, the other matter is a bit confidential. I do not want to give anything now at this stage. Maybe I think we may have to see for the next at least four to five months, and I'm in a position to answer your question on this.
Okay. That's also talking to the regimes.
There are so many other aspects to that. That's the reason I said we have to wait for some more time to clarify those.
Yeah, I completely understand. No worries. Thank you. Just for clarity for the SDR radars, could you give us a timeline as to by when could we expect or?
Actually, as we mentioned in the opening remarks, this year, before March 26, I think we should have three major contracts in place. Three contracts put together are close to approximately $100 million. All three, and we have not considered the major program which is likely to complete because we have a competition over there. These three programs, what we have mentioned, $100 million is on a single party, like, you know, on tender. We are going to get this with 100% probability.
Okay, thank you. Thank you so much.
Thank you.
Thank you. Participants, please limit your questions to two-part participants. Should you have a follow-up question, we would request you to rejoin the queue. The next question is from the line of Ajit Sethy from Eiko Quantum Solutions. Please go ahead.
Thanks for the opportunity. As we have a good order of work in our hands, and we have a place-minded opportunity for our credits going ahead, what kind of revenue groups are targeting to acquire 2026 and from next quarter, and what kind of profitability measurement can we expect?
Yeah. We are expecting a growth of around 18%- 20% year-on-year. Profitability also, we are trying to maintain the same profit whatever we have given the guidance of the current year because since we are focusing more onto the domestic business, and we are almost cutting down the BTP business, our profit margin seems to remain comfortable.
This 20% of EBITDA margin, we are expecting, okay?
Most of the profit margins, whatever we earned as of last financial year, I think we should be able to maintain. I would say that there will be a slight improvement.
Oh, okay. Understood. Thank you, sir.
Thank you. The next question is from the line of K. L. Kumar from Nideshar. Please go ahead.
Yes. Congratulations on a good set of numbers, sir. My question is, first of all, related to the space vertical. Like you mentioned, there is a long and subject opportunity ahead of us. Can you tell us more about like how many ground stations would be working out on that aspect and your weather as a service at the other portion? That would increase our loss potential on the revenue. Like in our CAGR on the longer-term practice would be increased or how you are evaluating on this plan?
Yeah. We are trying to focus on both ground stations as well as the satellite building. Initially, we have started building the, you know, small satellites from the LEO orbit for a particular application. In fact, it is already on. In the future, we are also trying to, you know, take up a few conclusions with the consortium partners whom we already have.
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Hello?
Hello.
I think somebody had.
Yeah. The next question would be on the MMIC. You have mentioned your approval on the numbers. I thought the numbers. Can you repeat that opportunity? Is there any long-term contract you have planned with the foundries and all?
Yeah. Actually, we have long-term contracts with the foundries, both in Taiwan and as well as in France. Right now, we are working on the gallium arsenide and gallium nitride technology. Soon, we will start working, you know, in CMOS and BiCMOS technology also, wherein we are trying to develop futures with partnering with a few companies who have a lot of experience in that particular domain. Most of these components, like, you know, we are basically developing for captive consumption. Apart from that, yes, we do have a direct market to the OEMs across the globe, but our focus is more on building these subsystems based out of the technology we develop. We want to become more competitive and technically to make sure that, you know, we can beat our competition in the entire system. That is what our strategy is for as far as the numbers are concerned.
Okay. My last question is, in the last phone call, you mentioned that we are developing on three to four seekers, and X-band has already been approved. Is there any further development on the other seekers? Can you show us the market on the NEVTRON GV?
Other seekers, another brand, yes, it is also, we have completed the qualification of RFS, and the complete seeker. DRDO is planning to have the trials sometime in September, October. I think probably by December, that seeker also should get qualified. In this year's end, I think, you know, we should be in a position to inform you about the potential for that other seeker also. Now, as far as the NEVTRON GV is concerned, the development part of that particular module is almost completed, and this is in the final stage of acceptance. Very soon, we are going to come out with these products for the end user. Once we finalize the total market on that end, we'll be able to inform you.
Okay. Thank you. All the best for the future, sir.
Thank you.
Thank you. The next follow-up question is from the line of Rupesh Patya from Sri Rama Managers PMS. Please go ahead.
Thank you. Thank you for the follow-up opportunity, sir. One question, sir, is on this LL, sorry, sir, on LLTR Ashwini. I think it's been a while that GL has received the contract. Where is the holdup? By when are we likely to receive the order for LLTR Ashwini?
LLTR Ashwini has been informed that Bharat Electronics Limited got the contract. In that, there is one of the subsystems. We do have the subsystems. Inquiries are on, and probably in the next few months, I think they will finalize the contracts on subsystems.
Okay. Okay. Thank you. Sir, and then GPR, ground penetration radars, what is the, can you give some idea of the opportunity size? How many radars are required? How will they be saved? Is the program fully funded? Some idea around that would be very helpful. Also the competitive landscape.
Yeah. Basically, we have developed in-house, and this particular version we have developed is targeted at the paramilitary forces. This is our main client for this. As I mentioned, we have now completed the prototype, and we launched the engineering model. In a few months, we'll complete this. As far as the business potential is concerned, yes, actually, we are in countries importing these kinds of radars from Russia and even other countries, European countries. I think in India, only one or two companies have tried developing this, but to a large extent, these radars are imported. Now we are going to replace with this radar once we complete the engineering model and qualify technically.
sir, how many radars are imported per year?
We are expecting roughly around, you know, 100 numbers minimum what we can, we are targeting every year. This is a handheld-based ground-based ground penetration radar.
That's helpful, sir. The other question, sir, is in the active tank protection system in tank, I think we have developed something called Doppler radar. Can you talk about that? Where is that program, and when are we likely to receive the order for that?
Yeah. In this particular contract, which we have received from DRDO, we have made a prototype, and there are a few observations that we are trying to address in the second model that also is being launched. We are expecting this order to get completed by March 2026. After that, I think DRDO may take another year or so to come out with the complete system for the pilots. In all probability, I think maybe we can see some production orders from FY 2027-2028 onwards.
Okay. That's clear, sir. The other question, sir, is this radar that.
The customer requests you to rejoin the queue for follow-up questions.
Yeah, sure.
Thank you. One second, sir. After there are no further questions, I now hand the conference over to the management for closing comments.
I have a question. Ajit, there was a question he was asking, right? Let's just finish.
Yeah, Mr. Sriram.
Yes, do you want me to promote him?
Yes, sir. Can you, yeah, if you just call him too.
Yes, yes, sure.
Since there are no other questions, yeah, we'll let him answer his questions.
Okay. Mr. Rupesh, you can answer what you have.
Thank you. Thank you for the opportunity, sir. Shabban radar, my question is, what is the end application of this radar? Does it go into destroyers, frigates, corvettes, or submarines? Currently, are these radars imported? Is this an indigenization effort? Some color around that would be very helpful.
Yeah. Actually, this is basically a substitute for the imported radar. This is the first time this is indigenizing this particular scale of radar for the Shabban application. Beyond that, exactly like in the usage of this radar, it's highly confidential. We cannot discuss those parts in this open discussion.
When is the commercialization likely?
Yes. Actually, it's repeat orders can be followed. Like as I mentioned, NavIC is interested in offering the technology being developed by DRDO. I understand NavIC is showing interest to get more numbers. Exact quantity and all timelines are done probably in the next few months. We will have the same information.
Okay. Thank you. Thank you for answering my questions, sir. I have lots more. Maybe I'll reach out to them.
Okay, thank you.
Thank you. Ladies and gentlemen, as there are no further questions, I now hand the conference over to the management for closing comments.
Yes, thank you. Thank you for your participation and your presence. I hope we were able to answer your queries. We'll be joining you after the Q2 period. Thank you very much.
Thank you.
Thank you, everybody.
Thank you. Ladies and gentlemen, on behalf of Astra Microwave Products Limited, that concludes this conference. Thank you for joining us, and you may now disconnect.