Astra Microwave Products Limited (AMPL) has approved the demerger of its Space, Meteorology and Hydrology business into a separate entity, Astra Space Technologies Private Limited (ASTPL), which is proposed to be listed on the NSE and BSE.
The move, approved by the board on the recommendation of the Independent Directors Committee and Audit Committee, will split the company’s space-related operations from its core defence electronics business.
Shares of Astra Microwave were trading at Rs. 1,434.70 on Wednesday, down 1.58% from the previous close of Rs. 1,457.70. The company had a market capitalization of Rs. 13,621.76 crore.
Under the approved scheme:
- Shareholders will receive one equity share of ASTPL for every one equity share of AMPL held.
- Both shares will have a face value of Rs. 2.
- No cash consideration will be paid.
- The existing shareholding pattern of ASTPL will mirror that of Astra Microwave.
- Shares held by AMPL in ASTPL will be cancelled and replaced with shares issued directly to shareholders.
The company has proposed listing ASTPL on both the NSE and BSE.
Businesses after the split
Following the restructuring, Astra Microwave Products will retain its defence-focused operations, including:
- Radar electronics.
- Electronic warfare systems.
- Telemetry solutions.
- Other defence electronics programmes.
The demerged entity, Astra Space Technologies, will focus on:
- Space systems.
- Satellite technologies.
- Meteorology solutions.
- Hydrology infrastructure.
The two businesses serve different customer segments and have distinct growth requirements, according to the company.
FY26 performance
Astra Microwave reported strong growth during FY26.
Key numbers were:
- Revenue: Rs. 1,156.12 crore, up 24% year-on-year.
- Profit after tax: Rs. 148.2 crore, up 42.8%.
- Order book as of April 1, 2026: Around Rs. 2,845 crore.
The order book provides revenue visibility for the next 24-30 months.
Revenue contribution of the space business
During FY26, the Space, Meteorology and Hydrology division generated about Rs. 157 crore in revenue.
Its contribution to total turnover stood at 13.58%.
The remaining 86.42%, or approximately Rs. 999.12 crore, came from the company’s core businesses, including:
- Radar systems.
- Electronic warfare solutions.
- Telemetry products.
- Other defence electronics programmes.
Focus areas after demerger
After the separation:
Astra Microwave Products will continue serving customers such as:
- DRDO
- Indian Armed Forces
Management is expected to focus on:
- Uttam AESA Radar programme
- Electronic warfare systems
- Indigenous defence platforms, including the LCA Tejas Mark 1A ecosystem
Meanwhile, Astra Space Technologies is expected to cater mainly to:
- ISRO
- Scientific and space-related agencies
Timeline
The board has fixed April 1, 2026, as the appointed date for the demerger.
According to the company:
- Financial results of the space business from that date will be transferred to ASTPL once the scheme becomes effective.
- The transaction requires approvals from the NCLT, SEBI, NSE, BSE and other authorities.
- Subject to approvals, ASTPL is expected to be listed separately in Q3 FY27.
Company profile
Hyderabad-based Astra Microwave Products Limited designs and manufactures RF and microwave subsystems used in:
- Radar applications.
- Electronic warfare.
- Telemetry.
- Space systems.
- Meteorology.
- Telecommunications.
The company operates manufacturing facilities in Telangana and has an R&D centre in Bengaluru.
TL;DR
Astra Microwave has approved a 1:1 demerger of its Space, Meteorology and Hydrology business into Astra Space Technologies. Existing shareholders will receive one ASTPL share for every Astra Microwave share held, with separate listing targeted for Q3 FY27.
AI summary
- Astra Microwave approved a 1:1 demerger of its space business.
- Shareholders will receive one ASTPL share for every AMPL share.
- FY26 revenue rose 24% to Rs. 1,156.12 crore.
- The space division generated Rs. 157 crore in FY26.
- ASTPL is expected to be listed separately in Q3 FY27, subject to approvals.
