Astra Microwave Products H1 cash outflow of Rs 147.8483 crore

Astra Microwave Products Limited reported a Rs 147.8483 crore consolidated operating cash outflow for the half year ended September 30, 2026, against a Rs 237.9216 crore inflow a year earlier, as inventories rose by Rs 190.5035 crore. The outflow came despite H1 profit increasing to Rs 63.43 crore from Rs 40.1778 crore.

Why did Astra Microwave Products report an operating cash outflow?

Astra Microwave Products reported net cash outflows from operating activities of Rs 147.8483 crore in H1 ended September 30, 2026, compared with net inflows of Rs 237.9216 crore in H1 ended September 30, 2025. Cash used in operations before income tax was Rs 116.8137 crore, and net income-tax payments were Rs 31.0346 crore.

The main cash use was a Rs 190.5035 crore increase in inventories, compared with an increase of Rs 1.6715 crore in the preceding H1. Other current assets consumed Rs 39.0573 crore, while contract liabilities decreased by Rs 5.697 crore in the cash-flow statement. These movements exceeded operating profit before working-capital changes of Rs 119.6221 crore.

Reported profit and operating cash therefore moved in different directions during the six-month period. Profit before tax rose to Rs 83.5213 crore from Rs 53.4572 crore, while consolidated profit rose by Rs 23.2522 crore year on year to Rs 63.43 crore. The cash-flow statement shows that the increase in operating assets absorbed more cash than the operating result generated.

How much did Astra Microwave Products' inventory increase?

Astra Microwave Products' consolidated inventories increased to Rs 806.8499 crore at September 30, 2026 from Rs 616.3464 crore at March 31, 2026. The Rs 190.5035 crore balance-sheet increase matches the inventory movement recorded as a cash outflow for H1 ended September 30, 2026.

The inventory rise occurred in a period of higher revenue and material consumption. Revenue from operations increased to Rs 439.4671 crore in H1 2026 from Rs 414.3132 crore in H1 2025, while cost of materials consumed increased to Rs 302.276 crore from Rs 282.2701 crore. Changes in inventories of work-in-progress and finished goods were negative Rs 96.9019 crore, compared with negative Rs 70.307 crore a year earlier.

The filing does not identify the inventory categories, individual programmes or delivery dates responsible for the increase. It states that Astra Microwave Products and its joint ventures have one business segment, Radio Frequency and Microwave products, and therefore do not provide segment-wise financial reporting.

What changed in Astra Microwave Products' receivables and liabilities?

Astra Microwave Products generated Rs 12.1731 crore of cash from trade receivables in H1 2026, compared with Rs 179.3537 crore in H1 2025. Current trade receivables declined to Rs 675.9999 crore at September 30, 2026 from Rs 687.6396 crore at March 31, 2026, while non-current trade receivables rose to Rs 9.2645 crore from Rs 6.5106 crore.

Trade payables increased by Rs 6.7362 crore in the H1 cash-flow statement. At September 30, 2026, current dues to micro and small enterprises were Rs 13.2773 crore, down from Rs 13.5108 crore at March 31, while dues to enterprises other than micro and small enterprises increased to Rs 108.1816 crore from Rs 100.0018 crore.

Other current assets increased to Rs 100.9049 crore at September 30, 2026 from Rs 61.8476 crore six months earlier. The balance sheet showed current contract liabilities of Rs 117.4323 crore and non-current contract liabilities of Rs 54.5608 crore at September 30, 2026, while the cash-flow statement separately reported a Rs 5.697 crore decrease in contract liabilities during H1.

How did Astra Microwave Products fund its cash requirement?

Astra Microwave Products generated Rs 114.6421 crore of net cash from financing activities in H1 2026, reversing a Rs 144.147 crore financing outflow in H1 2025. Current-borrowing proceeds were Rs 463.3924 crore and repayments were Rs 324.4869 crore, leaving Rs 138.9055 crore of net current-borrowing cash inflows.

Current borrowings rose to Rs 412.0945 crore at September 30, 2026 from Rs 223.8362 crore at March 31, 2026. Non-current borrowings increased to Rs 74.1886 crore from Rs 63.2173 crore; the financing statement recorded Rs 24.7741 crore of non-current borrowing proceeds and Rs 11.7183 crore of repayments in H1.

The group also spent Rs 64.5838 crore on investing activities, compared with Rs 16.8429 crore in H1 2025. Property, plant and equipment payments were Rs 39.2394 crore, and payments for intangible assets and intangible assets under development were Rs 28.1156 crore. Capital work-in-progress increased to Rs 24.3239 crore at September 30, 2026 from Rs 9.2504 crore at March 31, 2026.

What does Astra Microwave Products' order book show?

Astra Microwave Products and its joint ventures had an order book of Rs 4,707.59 crore at September 30, 2026, including Rs 237.18 crore of service orders. Orders booked between April 1, 2026 and September 30, 2026 totalled Rs 2,647.34 crore.

The disclosed order book was larger than H1 revenue of Rs 439.4671 crore, but the filing gives no execution timetable, expected margin, inventory requirement or customer collection schedule. It therefore confirms contracted business at the reporting date but does not establish when the inventory build-up will translate into revenue or operating cash.

Astra Microwave Products' board approved a scheme on June 10, 2026 to demerge its Space, Meteorology and Hydrology Business into Astra Space Technologies Private Limited. The scheme requires the approvals specified in it, and no effect had been given in the consolidated results for the quarter and half year ended September 30, 2026.

Conclusion

Astra Microwave Products' H1 2026 cash flow shows that higher revenue and profit did not convert into operating cash in the period. Revenue increased by Rs 25.1539 crore year on year and profit rose by Rs 23.2522 crore, but the Rs 190.5035 crore inventory increase and Rs 39.0573 crore rise in other current assets resulted in a Rs 147.8483 crore operating cash outflow.

The next reported periods will show whether inventory and other current assets are released as the Rs 4,707.59 crore order book is executed, and whether borrowings change after current borrowings reached Rs 412.0945 crore at September 30, 2026. The pending demerger of the Space, Meteorology and Hydrology Business also remains unresolved until the requisite approvals are received.