Astra Microwave demerger: key dates, FY26 numbers

What Astra has announced so far

Astra Microwave Products Limited (AMPL) has scheduled a board meeting for 10 June 2026 to consider a Scheme of Arrangement for the demerger of its Space, Meteorology and Hydrology (SMH) business. The SMH undertaking is proposed to be transferred into its wholly-owned subsidiary, Astra Space Technologies Private Limited (ASTPL). The scheme is expected to be pursued under Sections 230 to 232 of the Companies Act, 2013 and will require multiple approvals.

The company has repeatedly described the move as an in-principle step rather than a final decision. The draft Scheme of Arrangement has not been tabled yet, and crucial operational details are not available at this stage. There is no announced share-exchange ratio, no record date, and no listing date. The company has presented the restructuring as intent to create two focused listed companies.

Timeline: in-principle approval and the June 10 board meeting

The company’s board gave in-principle approval for the demerger on 27 February 2026, according to the disclosures provided. Separately, the context also notes an earlier in-principle approval dated 26 May 2026, followed by the scheduling of the 10 June 2026 board meeting to consider the scheme.

What is clear is that the 10 June meeting is positioned as the next formal step in moving from intent to a defined plan. The restructuring is subject to necessary approvals from the board, shareholders, creditors, stock exchanges, the National Company Law Tribunal (NCLT) and other regulators.

What changes after the demerger

Post demerger, AMPL is expected to operate as a pure-play defence and aerospace electronics company, while ASTPL will house the Space, Meteorology and Hydrology businesses and operate as an independent listed entity. The company has said ASTPL will have a “mirror” shareholding pattern to AMPL.

In practical terms, the mirror structure suggests that existing AMPL shareholders would receive ASTPL shares in proportion to their AMPL holding, with no cash consideration. However, the company has also clarified that while this structure can imply a 1:1 share exchange, no official ratio has been announced. The Audit Committee is expected to appoint a Registered Valuer, and the final structure and ratio are to be decided only after the board receives the valuer’s and consultants’ reports.

Why the “direction of the cut” stands out

Management is retaining the larger defence and radar-led core inside AMPL while spinning out the smaller, potentially faster-growing SMH arm. The SMH vertical has been built around a two-decade space relationship and a meteorology and hydrology franchise linked to Doppler weather radars supplied to the India Meteorological Department (IMD).

The stated rationale includes sharper operational focus, tailored growth strategies, clearer capital allocation, better oversight and governance, and potential value unlocking for shareholders. The company has also positioned the split as a way to avoid management and capital dilution across very different businesses.

FY26 financial snapshot for Astra Microwave Products

Alongside the restructuring updates, the context includes AMPL’s FY26 performance. The company reported a 25.7% rise in FY26 net profit to ₹193 crore and revenue of ₹1,163 crore. It also recommended a dividend of ₹2.40 per share.

These numbers provide the baseline against which investors may assess the scale of the demerged unit and the remaining defence-focused parent.

How big is the to-be-demerged business

From the company’s disclosures, the space business alone delivered revenue of ₹110.6 crore in FY26. The space order book was cited at around ₹187 crore, along with FY27 order guidance of ₹154 crore.

Management commentary from the Q4 FY26 call placed the combined space-and-meteorology contribution at roughly 16% of FY26 revenue. Using FY26 revenue of ₹1,163 crore, that implies the SMH business could be in the region of ₹180 to ₹190 crore for FY26. The remainder, described as the lion’s share, sits in the defence and radar core.

Order book and long-term customer relationships

Astra’s Space Group has supplied RF and microwave components and subsystems to ISRO across programmes including GSAT, RISAT, CARTOSAT, IRNSS and NISAR. Cumulative orders were described as more than ₹750 crore, with a further ₹250 crore to be executed by FY28.

In Meteorology and Hydrology, the company cited contracts exceeding ₹330 crore over two decades, spanning weather stations, radars and sensors supplied to agencies such as IMD, ISRO, CWC and NIOT. The current order book for this line was stated at ₹285 crore to be executed by FY28.

Leadership changes flagged alongside the restructuring

The provided context also notes a senior management transition. Managing Director S. Gurunatha Reddy is expected to step down by 30 September 2026 and join ASTPL as Director. Dr. M. V. Reddy is expected to become Managing Director from 1 October 2026.

These changes matter because the split is designed to produce two independent operating companies. Aligning leadership responsibilities is one of the practical steps needed before the SMH unit can run on a standalone basis.

Key unknowns investors are watching

The market does not yet have the scheme document, the appointed valuer’s report, or the final terms of transfer of assets, liabilities, contracts and employees. Crucially, the share-exchange ratio and record date are not available, and the company has stated that final decisions will be taken only after expert reports are received.

The timeline is also indicative rather than fixed. Management’s stated target is to complete and list ASTPL by Q1 of FY28, which it has described as roughly mid-2027, subject to timely clearances.

Quick facts table

Conclusion: what happens next

Astra Microwave’s 10 June 2026 board meeting is the next checkpoint in a demerger that is still at the intent stage, with key terms pending. For shareholders, the central disclosures to track are the Scheme of Arrangement, the appointed valuer’s work, the final share-exchange ratio, and the regulatory approval sequence.

Management has indicated a target to list ASTPL by Q1 FY28, and the timeline ahead will largely depend on when the scheme is finalised and the required approvals are received.