Astra Microwave Products has reached a major corporate milestone with its Board granting in-principle approval for the demerger of its space, meteorology, and hydrology business. This strategic pivot will result in the creation of a new, independently listed entity named **Astra Space Technologies Private Limited (ASTPL)**. The restructuring is designed to separate the company’s core Defence and Aerospace operations from its rapidly scaling Space and Meteorology segments. Management expects the transition to be completed by **Q1 FY28**. **Financial Snapshot and Market Context** Astra Microwave’s market capitalization currently stands at approximately **₹9,419 crore**. As of February 27, 2026, the stock closed near **₹968.60**, maintaining a strong year-on-year growth of over **62%**. The company recently reported its best-ever quarterly performance for Q3 FY26, with revenue reaching **₹258 crore** and a significant EBITDA margin of **30.9%**. This profitability surge is attributed to a favorable product mix and disciplined execution of its expanding order book. **The Space and Meteorology Business (ASTPL)** The new entity, ASTPL, will inherit a legacy of high-performance engineering. Over the past two decades, the space division has executed orders exceeding **₹750 crore** for ISRO, with an additional **₹250 crore** in contracts scheduled for completion by **FY28**. The Meteorology and Hydrology segment adds further stability, having delivered over **₹330 crore** in contracts to date. This division currently holds an order book of **₹285 crore**. By spinning off these assets, the company aims to provide more granular management focus on capital-intensive satellite and weather radar technologies. **Strategic Rationale** The demerger follows a "mirror shareholding" model, ensuring that existing investors receive shares in the new company proportionate to their current holdings. This move is expected to unlock significant shareholder value by: - Enabling specialized capital allocation for distinct business needs. - Improving operational efficiency and governance oversight. - Allowing each entity to pursue sector-specific growth strategies in India’s expanding defense and space ecosystems. **Looking Ahead** Astra Microwave continues to hold a robust standalone order book of **₹2,226 crore**. The defense segment remains the primary driver, accounting for roughly **89%** of the total backlog. With revenue targets set between **₹1,400–₹1,500 crore** for FY27, the company is positioning itself to capitalize on the Indian government’s self-reliance initiatives and the increasing commercialization of the global space sector.