Astra Microwave Demerger: Company Approves Space Business Spin-Off, Separate NSE-BSE Listing Planned

Shares of Astra Microwave Products Ltd. are in focus after the company approved an in-principle demerger of its Space, Meteorology, and Hydrology (SMH) business into a separate entity.

The stock reacted negatively to the demerger announcement, with Astra Microwave shares slipping 1.79% to Rs. 1,431.60 at the time of writing.

Astra Microwave Demerger Details

The proposed demerger will result in the creation of a new company, Astra Space Technologies Private Limited, which is expected to house the company's space, meteorology, and hydrology operations. After the restructuring, the existing parent company, Astra Microwave Products Ltd., will continue to focus on its core defense and aerospace electronics business.

The company has stated that the new entity is expected to be listed separately on the NSE and BSE after all necessary approvals are obtained.

Why Is Astra Microwave Pursuing the Demerger?

According to the company exchange filing, "The proposed demerger is intended to provide greater management focus, improve operational efficiency, and unlock value for shareholders."

Demerger Key Dates

The company has clarified that the announcement represents only an in-principle approval and not the final implementation of the demerger.

The proposal will require approvals from the board of directors, shareholders, creditors, stock exchanges, the National Company Law Tribunal (NCLT), and other regulatory authorities before it can become effective.
According to the indicative timeline disclosed by the company, the demerger process is expected to be completed by Q1 FY28, which corresponds to the April-June 2027 period.

What Does It Mean for Shareholders?

For shareholders, the proposed demerger could eventually result in ownership of two separate listed companies, one focused on defense and aerospace electronics and another focused on space, meteorology, and hydrology technologies.

Astra Microwave Products Ltd. Financials

Astra Microwave's financial performance was quite strong in FY26. In the fourth quarter ended March 2026, the company reported a 44.2% YoY jump in consolidated net profit to Rs. 105.98 crore, while revenue from operations rose 19.7% to Rs. 488.24 crore. Operating profit increased 37.8% YoY to Rs. 149.47 crore, with the company maintaining a healthy operating margin of 30.61%. Profit before tax (PBT) stood at Rs. 141.04 crore during the quarter.

On a full-year basis, Astra Microwave posted revenue of Rs. 1,163 crore, reflecting an 11% increase over FY25, while net profit climbed 27% to Rs. 192 crore. The company's board has also recommended a dividend of Rs. 2.40 per share for FY26.