Astra Microwave (ASTM.BO): Q2FY27 Results: Performance surpasses estimates; Production-heavy order book enhances revenue visibility

Astra Microwave Products Q2FY27 performance was significantly ahead of Goldman Sachs and consensus estimates, driven by better-than-expected operating margins. Revenue of INR 2.63bn rose 22% YoY and 49% QoQ, broadly in line with the brokerage estimate and 18% ahead of Visible Alpha consensus. EBITDA of INR 879mn beat estimates by 65% and consensus by 78%, with margin at 33.4%, up 1,114bps YoY, as gross margin expanded to 57.2% on lower material costs and a favourable inventory change. Net profit after JV contribution was INR 511mn, up 114% YoY. The standalone order book stood at INR 39.4bn, with the broader group book at about INR 47.1bn, and production orders now account for 82% of the total; all INR 19.8bn of orders received in the quarter were production category. Inventory accretion of INR 1.9bn in H1FY27 led to negative operating cash flow of INR 1.16bn and lifted the cash conversion cycle to 413 days from 384 days at end-FY26, while capex nearly tripled YoY to INR 392mn. The comp