ICICI Securities has issued a buy rating on Astra Microwave Products with a target price of ₹1,200 in its research report dated February 14, 2026. According to the brokerage report, the recommendation is based on 40x FY28E EPS valuation, reflecting confidence in the company's growth prospects despite current execution challenges.
The company's Q3FY26 EBITDA of ₹825 million exceeded consensus estimates by 12%, demonstrating strong operational performance. As reported by ICICI Securities, the margin expansion was particularly impressive, jumping 220 basis points year-on-year and 940 basis points quarter-on-quarter to 32% due to improved product mix. The company witnessed strong order inflows of ₹4.8 billion during the quarter and over ₹8 billion in 9M, meeting guidance expectations.
The order book spiked to ₹22.3 billion, providing strong revenue visibility for future periods. According to ICICI Securities, while FY26 revenue growth has been slow due to moderation in execution pace at client end and delays in order awards, the company maintains its guidance of doubling revenues by FY29 as execution of QRSAM, Uttam AESA and Virupaksha AESA projects accelerate.
ICICI Securities has factored in revenue growth of 19% over FY25-28E, with growth potentially back-ended. The brokerage expects the company to benefit from increased execution of defense projects including QRSAM, Uttam AESA and Virupaksha AESA systems, which are expected to drive significant revenue growth in the coming years.
