Astra Microwave hits record high on ₹2,205 crore HAL order
Astra Microwave shares surged to a record after a ₹2,205 crore order from state-owned HAL nearly doubled the Indian defence contractor's order book.
Astra Microwave Products climbed as much as 13.6% to ₹1,960 on Friday after securing a ₹2,205.23 crore contract from Hindustan Aeronautics Limited for the Uttam Radar programme. The single-day surge marked the stock’s strongest rally in more than four years.
HAL, a government enterprise under India’s Ministry of Defence, awarded the contract for 122 Active Antenna Array Units and 121 Interface Frames to be delivered over five years. Astra Microwave clarified the transaction is not a related-party deal, as its promoters hold no interest in HAL.
The financial significance of the deal lies in its scale relative to the company’s size. The contract value is nearly equal to Astra Microwave’s total existing order book of ₹2,610 crore as of March 31, 2026. This effectively doubles the company's revenue visibility and provides a predictable earnings runway for the next half-decade.
However, the order arrives amid a parabolic rise in the company’s valuation. The stock has surged 130% from its 52-week low of ₹835.90 in just four months. Over longer horizons, it has returned 422% over three years and 1,041% over five years.
Structural overhaul
The order win parallels a planned corporate restructuring aimed at unlocking value. Astra Microwave’s board gave in-principle approval earlier this year to demerge its space, meteorology and hydrology businesses into a separate entity called Astra Space Technologies Private Limited. The company expects to complete the separation by the first quarter of fiscal 2028.
Management intends for the standalone structure to allow the new space entity to pursue sector-specific capital allocation plans. The split is also designed to reduce organisational complexity, improve governance, and broaden the investor base by creating distinct investment opportunities.
For investors, the HAL contract cements Astra Microwave’s status as a critical node in India’s indigenous defence manufacturing push. The remaining question for the market is whether the fundamental weight of this five-year order can sustain a stock that has already priced in exceptional, multibagger growth.
