Astra Microwave Products Limited (NSE: ASTRAMICRO) Q4 2025 Earnings Call dated May. 23, 2025
Corporate Participants:
S.Gurunatha Reddy — Managing Director, Executive Director
Atim Kabra — Non-Executive Director – Strategy and Business Development
Unidentified Speaker
Analysts:
Amit Dixit — Analyst
Akshay Jay — Analyst
Yash Bajaj — Analyst
Unidentified Participant
Niraj Mansingka — Analyst
Ketan Gandhi — Analyst
Khush Nahar — Analyst
Karthi Keyan — Analyst
Shantanu — Analyst
Presentation:
Operator
Please wait while you are joined to the conference. The conference is now being recorded hello ladies and gentlemen, good day and welcome to the Q4 and FY ’25 Earnings Conference Call of Esta Microwave Products Limited. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr S.G. Reddy, the Managing Director. Thank you, and over to you, sir.
S.Gurunatha Reddy — Managing Director, Executive Director
Thank you,. Good afternoon to everyone. A warm welcome to all the participants to the post-results earnings call of our company. I’m with my colleagues, Mr Reddy and Mr Atim Khabra and, our Investor Relations at. The results and investors presentation for Q4 FY ’25 are uploaded on our company website and stock exchanges. I hope you have had a chance to look at it.
I’m happy to report that Astra achieved excellent performance for the year FY ’25 with a 15-year year-on-year growth in terms of revenue, which reached about INR1,044 crores on a standalone basis. With this, we have once again successfully achieved on full-year revenue target given in the beginning of the year. We have witnessed significant growth in our gross profit margins, which stood at 43.9% for financial year ’25 as against 39% for financial year ’24. We have also seen good expansion in our EBITDA and PAT margins. This improvement is directly related to the product mix where we have continued to see healthy execution of domestic orders and with till towards the defense segment.
The revenue contribution from domestic business in this year is close to 90% as against 68% in previous year. For FY ’25, our EBITDA margin is about 25.5% and PAT stood at about INR143 crores with a margin of about 13.7%. Based on our product mix for the current order book, we are confident to maintain margins — margin profile around 18% on a level for the coming year also. During the year, we received orders worth about INR1,098 crores on a standalone basis.
These new orders are essentially from radar and other segments where radars have contributed to about INR556 crores, INR226 crore crores coming from electronic, about INR36 crores from telemetry, INR60 crores from space, INR79 crores from exports and about INR140 crores from methology and sectors. Overall, our standalone order book of about INR1951 crores consists of 91% of domestic orders, primarily bill to spec and 9% export orders, which include both BTP and BTS business. Moreover, our consolidated order book includes service orders valued at about INR150 crores, which are typically more accretive to merchants.
Apart from regular orders, during the quarter, we have received orders for AAU for LCA Mark II and Su-30, which have significant business potential in the years to come. As of March 2025, our consolidated order book stood at about INR2,304 crores. Now coming to some business updates for the quarter. Earlier this week, the Board has approved a fundraiser of about INR174 crores by way of differential issue. This raise will help us to strengthen our balance sheet as we look-ahead.
Also, I would like to update you that Board has approved dividend distribution of about INR20 per share, up from INR2 of last year. Both our wholly-owned subsidiaries have done well, though they continue to serve the present parent company to a large extent on exclusive basis. Our joint-venture company, Astra Rafal has done well again. In terms of top-line, though there is a dec profitability due to low-level of performance in Q4.
It has huge potential — potential to grow in the years to come in. And in the immediate coming year, it is estimated to reach about INR350 plus crores of sales with a PBT of about 12%. In terms of capital expenditure, we have budget to spend about INR45 crores for purchase of various test equipment to augment existing operations and another INR45 crores for building additional space at our production unit to take care of expected load-in the coming years.
This capex will be made out of internal accruals and term loans from the bankers. Over the years, has grown strength by strength and invested significantly both in infrastructure and talent in way of enhancing capacity and capability and opportunities. Our performance during the year and our order book mix are a clear sign of these strengths. Today, stands as a toll as well as a diversified defense company that offers critical components, subsystems, high-end MMICs and systems, especially in the radars for both defense and weather and anti-drooms.
In this world of heightened uncertainty, is strategically well-positioned to serve both the domestic and international markets with a diversified product portfolio catering to a wide spectrum of applications in defense, space and methodology. In the end, I would — I would like to share with you, we are aiming to grow our top-line at around 20% with a bottom-line of about 18% with an order book target of about INR1,400 crores for the financial year FY ’26.
Now I hand it over to Mr and Mr Gabra who will give more insight into new product developments, business outlook in the near and long-term and the strategies adopted by the company to take it to the next level of growth cycle. And I request and we’re ready to take it. T
Hank you,. Good afternoon, ladies and gentlemen. Thank you for joining us today. We being one of the prominent player in defense and aerospace over last three decades. First of all, we take this opportunity to congratulate government of India and our armed forces on the tremendous success of operations in mission. This landmark achievement stands as a testament to India’s growing strategic capabilities and we at Astra Microwave Limplates are proud to have a tiny contribution in the Akash missile system and Needhra.
Our technologies continue to play a critical role in strengthening national defense and security. It is with immense pleasure. We share that we have surpassed INR1,000 crores in sales, the historic milestone in the history of Astra and the highest-ever in the company’s turnover so-far. This is not only a financial achievement, but a reflection of the tireless efforts of our teams and the deep trust placed in us by our partners and stakeholders.
What makes this milestone even more significant is our consistent track-record of delivering on the annual guidance we set at the start of each financial year for last few years. Our ability to align planning with performance reinforces the credibility of our strategic vision and execution. We would like to highlight few strategically important orders, which we won in the last quarter, which is including technology demonstrated version of the, critical subsystems for next-generation electronic warfare suit, technology demonstration version of the LCA Mark II program.
These projects are not only technologically advanced but also strategically aligned with India’s long-term defense requirements. We also would like to bring — bring out few key operational highlights from Q4, which also include other order wins like subsystems, which we won for Akash Prime, Prime and few radars weather radars from sector and also the agro AWA system from Indian department in the expanded for a strategic missile program.
Few major programs which were delivered in last year, which includes OENE modules, 3D core train modules and other subsystems for MPR WLR likewise and also EW subsystems like modules etc and also we have delivered subsystems for program of space program. We have also delivered successfully precisioned approach Radar to HAA and which installation and integration is in-progress. And during Aero India Show we have signed multiple MOUs with large defense and aerospace companies including L&T BDL for expanding our collaborative ecosystem and market reach. In a nutshell, in FY ’25 we won orders 80% in 20% in space and.
Overall, contribute 50% and 20% we from AW sector. Similarly, we have made sales in the same ratio, that is 80% in defense and 20% in space and. As we look-forward, we see a strong order pipeline and robust demand for our indigenous defense technologies. We are cautiously optimistic keeping in view of process timeline constraints and we expect to achieve top-line growth of 20% in the coming financial year. It is FY ’26 onwards, driven by a sustained government focus on self-relance and strategic procurement.
We target to book a revenue of INR1,300 crores INR1,400 crores orders in FY ’26, including INR1,000 plus from the domestic segment and INR300 plus from the export. And also we have a target to book revenues close to around INR200 crores plus. Our JVC, ARC is doing extremely well, although there is a slight dip in Q4 revenue due to some few technical constraints. But we have strong visibility to book significant orders in the coming years. The current year that is in FY ’26, we have a good visibility to book orders worth of close to $100 plus million and the revenue, we are expecting around INR350 crores plus.
In closing, I would like to reiterate that we are geared up in-building a feature ready, resilient and proud Indian defense enterprises. We would be happy to answer your questions. And now let me hand over to Mr Atim to share his thoughts. Thank you.
Atim Kabra — Non-Executive Director – Strategy and Business Development
Thank you,. Thank you, Ajit, and good afternoon, everybody. Let me start by joining my colleagues in conveying our deepestity to our armed forces, and we are also proud of our defense establishment, our resource labs and the defense PSUs as partners them all-in this journey towards a self-reliant India. Multiple armaments that performed with resounding success and precision work and then were used by our armed forces represented years of hard work, dedication and a vindication of the R&D efforts within the country.
As Astra, as MD has just mentioned, it was a very proud moment for us to see the successful deployment of Akash missiles, their critical subsystems were contributed by us. We were proud to be a small part of the Missile program also, proud to be a part of the extensive network of radars deployed across our borders, where we have contributed components and subsystems plus the layer of safety and comfort provided by advanced systems like, the Airborne early warning systems, where has been a key contributor.
And as the paradigm of warfare evolves into incorporating drones as essential components in warfare, will be a key contributor going-forward too in designing and producing anti-droom solutions in varying myriad configurations, along with surveillance systems that shall be the centuries at our borders, this is in addition to new radar deeper penetration into enemy territories that we are building, the solid seekers and multiple other products coming to us stable. This entire spectrum that I speak about is in-line with our stated journey into systems and products and solutions, which we have discussed with you over the last quite a few sessions. So we are well on our way towards delivering what we promise.
And needless to say, our counter UAD solutions will be made in India and will not only cover various use cases and ranges, but will also be targeted against high altitude tactical drones at the higher-end of our offering spectrum. Where do we position ourselves? And as you very well know, Astra manufacturers complete radars right from MMIC to TR modules upwards.
And we are strengthening that core capability continuously, bolstering it by concerted move into smaller lighter radar with a predominantly digital footprint. I also wish to share with you today about the broad-spectrum of our product range, which establishes ASPRA has a well-diversified defense sector key player with deep-rooted capabilities that expand much beyond our expertise in-land and airborne radar platforms.
So we are not only into high-end radar, but also significantly into electronic worker systems, missile, electronics, telemetry, space sector and weather and hydrology segment with exports contributing as the final. So in a predominantly tender-driven procurement system, a diversified presence insulates us to a large extent from extreme swings strengths and brings about a predictability and sustainability to the earnings stream, which is our focus.
More than 50% of our revenues are driven by the segments which I just described above, rubber besides these radars. So we make radars, but we are a key player in electronic water systems, missile electronics, space and weather and hydromergy. So this will give you a sense of the deep talent tool, which is the backbone of.
Now as multiple AFON platforms get upgraded and ground-based radars cover larger swaps of our borders, they give us an ability to look deeper into hostile territory where — and we expect our radar business to grow at a steady pace. But the evolving sector of warfare will be predominantly based on electronics in our opinion.
And electronic work Suites will gain an ever-increasing role. Precise targeted strikes with minimum collateral damage will place importance on command guidance units in missiles, fuses in missiles with AI-based data interpretation becoming the norm. So our solid-state seekers will propel safe to say new-generation missiles.
And there is a substantial potential market in both offensive as well as defensive missile capabilities, where we hope to continue playing a critical role, much like the success of attach missiles. We also believe that space will be the next frontier in war with space-based surveillance and spy satellites becoming the norm, high-speed data transfer, satellite-based communication links and their eyes in the sky which never blink and penetrate through clouds and folios and this will be besides the multiple civilian applications that you will see for space sector.
You will be very happy to note that barring launch capabilities, has over more than a decade developed capabilities in the space sector that cover space grid components, subsystems, significant payload contribution capabilities, satellite designing and assembly capabilities, ground stations, and now we are moving into solutions across sectors from the space sector. Further, I would say diversification is also provided by our weather business with Dopla weather radars, wind profiler radars, automatic weather stations, which enable us to offer weather prediction solutions over-time.
But we shift our focus on the solutions, I hope you are able to share our vision of being a deep tech company, providing solutions across a spectrum of needs for our different sources and beyond. In a focus profitable manner, together, I would say both you and us to our soldiers in our own ways, supporting the vision of ourselves and tech-focused partners that dominate over to Mr interest.
So I’ll close with Jay him and we shall take a few questions now. Over to you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press R&1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press R&2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Amit Dixit from ICICI Securities. Please go-ahead.
Amit Dixit
Yeah, hi. Good afternoon, everyone, and congratulations for good performance. I have couple of questions. The first one is on the changed geopolitical scenario where we are hearing that Project Kusha is likely to be advanced-stage advancement in QR as well. I just wanted to understand what kind of subsystems, modules we will be developing and what could be our — our possible share in these platforms And also is it possible to highlight very broadly, if any of our subsystems, we manufacture any subsystem for Akshti? That is my first question.
S.Gurunatha Reddy
Yeah, please go second question.
Amit Dixit
Yeah. The second question is on essentially what we see while the operating cash-flow utilized has reduced by 50% this year. The working capital, we see that inventory has gone up, receivables have gone up. So is it because of certain specific contracts that we expect prepayment to come in April or June or — and inventories have gone up, is it in preparation of something to be delivered in FY ’26. Yeah. First, we’ll take the question on Kushal project
Atim Kabra
Done. Yeah. MR. Amit, we partner — we are the part of the Kushal development program and we have been providing subsystems like TR modules and receiver executive and products to a radar — radars being planned in the Kushar, which are in the development and the supply phase. And I’m sure like you know, in fact, we and other companies are sharing the subsystems market in the. As far as the QR sum is concerned, yes, we have a significant portion in the subsystems area like tear modules and also we oil subsystems in missile programs also. So we have subsystems in both radar and as well as the missile of PR7.
So we are waiting for the orders. I think our bell is likely to get this contract by the Q4 of this financial year and we may get our order maybe post to that. And if BEL takes any advance action to go-ahead and that probably we may get our order much early. Yeah. Yeah, regarding the working capital, in terms of the receivables, essentially, you know, if you look at the balance sheet at the end-of-the financial year, the receivables outstanding appears really high.
But again, you have to look at the delivery pattern. In the last quarter of the financial year, we have delivered close to about INR400 plus crores of business. Essentially the entire business executed in the Q4 will be outstanding there apart from the older receivables. As a result, the overall outstandings are at an higher side. To give an update about the receivables, hedging and other things, out of total receivables, about INR55 crore receivables are the deferred receivables. We have explained in the previous calls what is this deferred receivables is again for the benefit of all of you, I’ll repeat, the deferred receivables won about INR24 crores worth of material what we have supplied to our joint-venture company as a part of the NCNC program, which the company is undertaking for development of backpack radios for the army.
That was our contribution for this program. So the understanding is that this amount will be shown as deferred receivables till that final technical acceptance of that product gets completed. Once we have a result about it, if ARC becomes the winner, then in the normal-course, they are going to repay that amount back. Suppose if for whatever reason, if it is not going to win the contract, then this amount we have to find out a way of getting it back. One option which is there in the discussion is to convert this as a loan repayable over a period of time. So we are going to take a call depending on when the final sir gets completed in terms of getting this INR24 crores back from the joint-venture company.
The other part of deferred receivables pertaining to the weather-related products what we have supplied to IMD the supplies are made against open tender, wherein we get about 40% of the amount, 40% of the value of the goods supplied on acceptance, then the remaining 60% is paid over the warranty period, which stretches up to five years in equal installments. Therefore, that amount pertains to that part of the receivables, which is going to be get collected on yearly basis over a period of five years.
The other thing which I would like to share with you is about INR140 crores worth of material what we have supplied is in the final stages of acceptance by the customer. Probably this entire amount is going to be realized by the company in the next six months. So you have to take these three factors into account. One is the deferred receivables. The other one is items which are waiting for acceptance at the customer end, which is about INR145 crores and the building done by the company in the last quarter, which is about INR400 crores. So once you factor all these three elements, then the receivables status is probably it is very clear to all of us.
Yeah, Amit, is there anything else I wanted to clarify?
Amit Dixit
Yes, sir, inventory part.
Atim Kabra
Yeah, inventory part apart from one large program which we are executing to, which is NPL program most of the other inventory pertains to what we are likely to deliver for the current year.
Amit Dixit
Okay, sir. Thank you so much. That’s very detailed and all the best.
Atim Kabra
Thank you.
S.Gurunatha Reddy
Thank you.
Operator
Thank you. We’ll take our next question from the line of Akshay Jay from Exponent. Please go-ahead.
Unidentified Speaker
Thank you for the opportunity. In the last few interviews on new channels and on this calls. You’ve spoken about space as the potential to be as large as our current defense business. Can you can you spend a little bit more time understanding or explaining other to us what the parts look like, what are the areas that we see as large opportunities in the near-term and the medium-term and sort of if we had to imagine a business as larger defense in space, what would what would the journey look like from here to say three years or five years.
S.Gurunatha Reddy
Yeah. So in space segment, we started our journey by supplying components and subsystems to all communication and remote radar imaging satellite programs to ISRO. This is almost we started from 2001 onwards. And the — we — with the transformation in the space sector and the reforms being introduced in 2020. And the government has given the opportunity for companies to build and launch satellites and keeping taking this opportunity, we decided to start our own space satellite division and we formed space provision jet and as a 100% subsidiary of Astron.
So here, basically, we are planning to build our own satellite and as a technology demonstrator for this and which is already in the advanced-stage. And apart from that, we are also participating in a couple of RFPs being floated by inspace and all, wherein the private companies been allowed to build the satellite constellation and to operate and sell the data. This kind of RFPs, we started looking into this. So going-forward, while we continue to supply our subsystems to our satellites made by and other key OEMs and international OEMs. We also — we are planning to build our own satellite for generating revenue from the data.
This is what the mission maybe Atim may add a few more points on this. Yeah guys there’s a lot of talk about the need to learn satellites there is a need for application of satellite source data for agriculture, for fisheries, for water management, you name it. Data is the key here. Data monetization abilities, which exist in the West is now — the time has come for that to be implemented across-the-board in India. Now Astral’s journey was as and we explained over a period of time has been for more than a decade where we have space grade facilities to manufacture components. Components have to be tested and they have to be forced, if I may say to withstand high temperatures as we send them into the space. So there are dedicated facilities and testing units which are within Astra for space grade components. We — in the last mission which went, I think it was, if I’m not wrong and we were 9% of the payload and 3% of the overall satellites in value terms, okay. So once you supply components which are space grade, you move into subsystems.
We are — we have been a very active part of the reset satellite programs. We — across multiple bands frequencies, we are able to create these communication links, which will come in very, very handy as we go-forward. You have a subsystems which are made and then you have payloads. Now Astra has in certain segments in certain kinds of payloads, very significant capabilities which have been built-up over a period of time. There are a few gaps which we are hoping to fill-in through JVs or alliances or through tech absorption from external sources. You — we have in our Bangalore unit, a satellite assembly clean rooms, which have already been set-up and commissioned.
We have designing capabilities, satellite designing capabilities, which are being continuously improved. We are already there in the ground segment, you know, for satellites of the communication ground stations which need to-be-built, Astra is a part of that, okay. And this completes — almost completes the hardware chain and then there is a data monetization part, which I mentioned to you at the various applications. And will be a significant player over there also is our effort. So I hope I’m able to explain the value spectrum where we are.
And that for the defense programs which have been DRDO has made few satellites like India, Anveshas, Samoha, wherein we are active partner and we have been suppling critical subsystems to those programs. Yeah. Thank you.
Akshay Jay
My second question is on NP1A, the order book expectation that you have for the coming year, do you — is there — does it include the potential that comes from NK1A Usam?
S.Gurunatha Reddy
Yeah. We have taken few numbers from that and probably since we are — although we were expecting that order in this quarter, but I think may get deferred by another one or two quarters, but we have taken a few numbers from that. So when we start of these last? Execution will start mostly by the last quarter of this financial year.
Akshay Jay
That’s helpful. Thank you.
Operator
Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the conference, please limit your questions to two per participant. The next question is from the line of Yash from Lucky Investments. Please go-ahead.
Yash Bajaj
Yes, thanks for the opportunity and good afternoon, team. Congratulations on a good set of numbers. Sir, I just wanted to understand the importance of antenas which are being used for our radar, electronic warfare, and counterdrone. Do we make that in-house? That’s my first question.
S.Gurunatha Reddy
Yeah. Antenna is one of our core strength in our products. Actually we were the one among the first set of companies who started Antina design and development and manufacturing. Even in 1992, we have established Antina design center and the range with the capability to build for — to begin with telecom and then we entered into defense and space. We have supplied this antenna for many programs for ground-based airborne race and shipbone based programs in defen.
And also we have supplied these antenna panels to satellite programs. So today, we have a very strong antenna design development and manufacturing facility in-house. So all the antennas whichever require for our radar systems and EW being built-in house.
Yash Bajaj
Okay, got it, sir. And just a follow-up on that, sir, that can you help us understand the criticality of designing and developing these in-house and not getting it made from someone outside the company.
S.Gurunatha Reddy
Actually this antenna is a specialized skills like you know in this particular domain since we have this expertise built-in our company right from inception of the organization. So we have been growing with the upgradation of this particular technology and we have been using a specialized tools and with the software designed by our own team. And with that, we are able to turn out these antennas and you know to be supplied to the defense and space requirement.
So the software plays a very key role while designing this antenna and our team has a full cap — established capabilities and they have been successful in developing these antenna by using those.
Yash Bajaj
Okay. Okay.
S.Gurunatha Reddy
And also added to that, we should have a infrastructure to you know test and measure the radiation and like we have open Internet test range. As I mentioned earlier, in the beginning, we were established. And then also we have established near-field test range in Bangalore to test all active phase antennas, which is one of the, I would say first-in private sector to build this kind of a test range in India.
Yash Bajaj
Okay. Okay. Got it, sir. Thank you so much and all the best.
Operator
Thank you. Thank you. Thank you. The next question is from the line of Deepen from PhillipCapital. Please go-ahead.
Unidentified Participant
Hi, thank you for the opportunity and congratulations on a great set of numbers. Sir, my first question is in the line of your margin, sir. You mentioned that your margins this year have been higher because of higher execution from domestic on defense orders. But if you look at it, even last year, the margins were close to around 21%, which was substantially higher with lesser contribution from domestic. So can you give us a bit more commentary as to what is leading to such a great margin and how sustainable that is? Is the impact because of the change in the kind of contract like whether they were TOT licensing. So can you explain a bit more regarding the margins?
S.Gurunatha Reddy
Yes, the improvement as I mentioned in my opening remarks, this improvement has happened mostly because of the change in the product mix. As we execute more-and-more domestic business where most of the things are being done in-house, the value-add is much higher compared to what we get-in a offset related export business or some other export business where generally we get paid only for the conversion costs.
So the main reason is only in the product mix where we are moving more towards the domestic kind of thing. Apart from that, a couple of domestic programs, which were in R&D in earlier are moving into a production stage where we are able to economyze in terms of our material cost, et-cetera, which are also contributing to the improvement in the margins.
Yash Bajaj
Got it, sir. So thank you so much for this clarification. My second question is a little bit about the market scenario. So there have been talks about the emergency procurement coming into place and lost many orders. So what is your sense in terms of kind of request that you’re getting from the armed forces and areas that are right now being discussed. Any light on that?
S.Gurunatha Reddy
Yeah. For last few days, in fact, we have been getting inquiries and rupees of perfew systems which we have and for which we have already supplied like for example, like counter drone radar system and Jamer and detector center. We have a few RFPs and we have submitted a response and some trials are expected to be conducted very soon. Similarly, we have a news from in our customer that they may need more of Akash missile systems. So for if that turns out to be business, then I think we may have good contract from our customer. And then also we — we have received inquiry for a low-level radar that also we are participating in that. Apart from that, yes, our customers, especially DPSUs, they have been getting a system inquiries and all.
As and when those inquiries gets materialized, we will — since we are a qualified subsystem supplier to those systems, we will be getting orders thereafter.
Unidentified Participant
Got it, sir. Sir, just a small follow-up. What is the timeline in the emergency program from RFP to tenders to be trial and maybe finalization
S.Gurunatha Reddy
Sometimes they talking from right from eight months-to 18 months. It depends upon the program, project and requirement.
Unidentified Participant
It takes so much time.
S.Gurunatha Reddy
Yeah, actually few systems if they talk about if they would like some systems where we need to have — we have to depend on the — some imported elements. So I would say most of them are within one year, but very few cases probably will go beyond one year.
Unidentified Participant
Got it, sir. Thank you so much for answering my questions and all the best for FY ’26.
S.Gurunatha Reddy
Thank you.
Operator
Thank you. The next question is from the line of Niraj Mansenka from and White Pine Investment Management. Please go-ahead.
Niraj Mansingka
Well, thank you for the opportunity. I have a few questions. On the, you said you initially that there is some elaborate on that actually beautiful share in Q2?
S.Gurunatha Reddy
Yeah, actually both these are technology demonstrated version of you of actual models. So this is an extension of what we did for Uttom and that radar itself is a configured to meet this particular requirement of these two platforms. So this will be tested in these two platforms and for that we got this — it’s kind of a repeat order. These two orders we are now received, we are trying to execute. Apart from that, the — for actual version of share, we also are we emerged as L1 in one of the voted by DRDO. So as and when we get the order, we will inform you.
Niraj Mansingka
So okay, what happens when you get an in? Does the government win again this another supplier opportunity or you would be the one who’d be having a higher chance to get this
S.Gurunatha Reddy
Two vendors in fact, the other vendor’s name I won’t mention here, but it will go for two vendors. Yeah, we are among them. So — and sir, this video is for the entire to 260 plays to be done over a period of 10 years and whatever no, this is I think our best of knowledge, I think it is initially for 100 members they are planning to go. And the other 100 plus, I think they may go — they may take it up in parallel. This is what we we are understand from our you know from the discussions what we have and sir, on the one of the players have shown of Hawkeye in. So does it mean the government will change of potential and we don’t want to comment on somebody’s product sorry to interrupt you, sir, but I join the queue.
Operator
We join the queue for follow-up questions. Thank you. The next question is from the line of Bharat from Quest Investment Advisors. Please go-ahead.
Unidentified Participant
Hi, sir. Thank you for the opportunity. Initial remarks, you spoke a lot about you on the drone side. So can you give some color what exactly and where what stage we are in the drone space?
Atim Kabra
Let me answer that. Let me answer that. Okay. Guys, drone, the counter drone systems are a very, very wide range. They range from simple stuff like drone guns to jammers and to jammers, which can be of varying distances, right? There are — there are passive detectors and active radars which are included as a part of counterdrome systems.
On-top of that, you have panels which decide the direction as well as the strength of the signal and the length to which you can jam the signals and the height to which you can jam the signals, right? And whether you can do it in parallel simultaneously or in how many directions can you cover the jamming? So suffice, now these are first standardized zones. Then you have tactical drones, which are — which come in with their own built-in anti-gaming systems. So there are different technologies which are deployed to counter them.
Suffice to say that Astra has a presence across the entire spectrum of drones at this point in systems.
Unidentified Participant
And they are being tested as we speak. How big the opportunity we see in medium? What is the current contribution, revenue contribution? How do we see over the next very — very difficult to put in a number, but you’d be rest assured that drones are now a critical part of any offensive strategy. So any defensive strategy will need to deploy will count counter drone systems and we have a very, very huge border. Okay. Sir, and second, my second question is on the balance sheet side. So how do you think from medium-term perspective on working capital overall as a number of days? Of course in this — so this is one-off or this will remain and sustain at this level only? I think as we just answered this question, we are fairly –, you want to take this up please? Again? Yeah. Okay.
S.Gurunatha Reddy
Yeah, as you rightly said, yes, this business is working capital-intensive. We continue to have higher working capital days. The best-case is that whatever is there in our hand in terms of procurement cycle and addressing technical issues as and when they arise once you supply the product. These are the few things which are in our hand we are focusing on that so that the working capital days can be optimized. Beyond that there is very little that we can do about it.
Of course when it comes to the systems business one representation from the industry to the government is that instead of keeping everything for after supply of the product and going through that fat and SAT clearances, whether it can be facilitated in terms of the milestones, that representation is there from the industry to the government. If they accept that, then probably there will be a little bit of a relief to the industry in terms of the working capital management.
Unidentified Participant
Thank you very much, and all the best.
S.Gurunatha Reddy
Thank you.
Operator
Thank you. We’ll take our next question from the line of Ketan Gandhi from Gandhi Securities. Please go-ahead.
S.Gurunatha Reddy
Hi, sir. It is indeed a very proud moment for all the stakeholders and congratulations to all the and the team Astra for in operations Hindur, our products have been worked as per the expectation like and guidance system for Akash and RPF that is ready proximity fuse and various. And one more things to note is the commitments owned by the existing Board members to the warrant issue is indeed gives us quite comfort that there is a long way to for Astra to go-ahead.
Ketan Gandhi
My one question — only one question is in Project Virupaksa, I believe total 2,400 TRMs are being built-in the AAAU and is there any chance that gallium which is now banned by Chinese can be a deterrent for us to go for TRM can we have any issues in procuring gallium or we have already tied-up that’s a good question Mr Ketan the MMICs which we have designed and developed for these TR modules being used both at Uttam or Group of Shah. We have a standby foundry service in Europe. We already have a tie-up with them and we are already given some kind of a development activity to build the wafers, you know, to get the standby in case if we have any issue with Taiwan, Taiwan where we are depending them for the current production. So we already taken action on this. So that’s really very helpful. And again, once again, sir, really we feel so proud that we have invested in this company long and all the best for the future. Thank you so much.
Atim Kabra
Thank you.
S.Gurunatha Reddy
Thank you,.
Operator
Thank you. We’ll take our next question from the line of Kush from Electrum Capital. Please go-ahead.
Khush Nahar
Yeah. Hi, sir, thank you for the opportunity. I have with two questions. So one, can you elaborate on the competitive landscape in terms of — so since we have a wide product, who are our like-to-like competitors? And second, I think in the presentation, we have mentioned in terms of strategic alliance and HDR segment, which is a software-defined radios. So in terms of opportunity, what kind of total TAM we’re looking at or what is the yearly requirement and how are we going to develop these products
S.Gurunatha Reddy
You have asked for three questions. One is the competitive landscape. Yes, we have competitors in various segments in bids and. We don’t have any real competitor covering the entire product range from MMICs to the radar system or EW systems today and satellite. So the — our range is too large and we have competitors in different segments. So that’s the first question. And I don’t want to name those competitors, but we do have a competitors. Then the second question, you said the strategic alliance, what I have mentioned in my opening remarks is not for the JSDR, it is basically for the radars, one of the huge long-range radars, we have, you know, made alliance with another company as it is — the investment is to be made in huge and also the scope of work is apart from the electronics, we do have a lot of mechanical intensive portion.
So for keeping that in mind, we have made an alliance in the long-range — one of the long-range radder. That is a program-specific alliance, not in generic alliance. And also we have made alliance, we have rented MOU with PSU to develop you know the RF seekers for the few strategic missile programs. These are the couple of finances what we have made during Hero India. As far as SGR is concerned, the entire SDR market is being addressed from our JV company, which is Astra Rafal and we have developed — we have in-house design, develop and manufacturing center in our JVC.
And whatever the products which have gone for NCNC trial, as Mr mentioned in his opening remark are designed and developed in our joint-venture, which have been passed successfully first two-stage of trials and the third final stage of trials are scheduled in July. With this, we have built capability to develop the complete range of SDR in-house in our JVC. And the third question what you asked is the TAM. Yes, we are addressing close to INR25,000 to INR20,000 to INR25,000 crores of market as we mentioned in our previous earning calls and we are still in that range — in that particular range, probably it may increase, but as of now, that is it overall TAM.
In next four to five years, we should be in a position to capture majority of that. So just a clarification, the INR25,000 crores stand is only for the SDR segment? No, no, no. It is overall product range, not almo. It is, as I said, the overall product range of our Astra. Any number on the SDR, what kind of? For SDR, the total market size, it look — it appears to be around INR5,000 crores to INR6,000 crores in next five years.
Operator
Thank you. We’ll take our next question from the line of Kartik from Suyash Advisors. Please go-ahead.
Karthi Keyan
Good afternoon, gentlemen. Many congratulations on the impressive performance. It’s gratifying to see that the commentary two years ago and today is consistent. So good to see that you’re on the same path and things are playing out. I had only one question regarding your presential issue. Three things, what determines the name? I understand spent a lot of time in, but I’m just trying to understand about the other alloties. B, couldn’t you have raised money given that from the public, given that the markets are much more open today, I suppose. So some thoughts on this and of course, why is it structured as a warrant? So these are three parts to the question.
S.Gurunatha Reddy
Did I answer this
Atim Kabra
As you requirement for money is for NCNC CNC demonstration of a product range. We don’t want to stress the balance sheet unnecessarily beyond the point as you have heard other participants also point out that this is a working capital-intensive business. The requirement for money is not huge and comes in as the products are being manufactured over a period of time, the systems are delivered, they go into a testing, the QIP price was actually lower.
So we — and the prep — and if you add a 5% discount, which is customer, it actually was, if I’m not wrong, working out to around INR801 rupees so we decided to go in for a first prize which was on the higher side. All the participants which you are talking about Suresh Somani is one of our most valued directors deeply involved in guiding the company forward strategically and he is a very valued Board member., sir is our original founder in the company. MR. Damani’s Group is — not only has been a substantial holder, but we hold him in extremely high regards in terms of his being who he is and the value-adds which they can bring in. So there was no need to dilute every shareholder beyond the point where when it was not necessary. So all these considerations played a more significant role in deciding this.
Karthi Keyan
Thank you. Okay.
Operator
Thank you. The next question is from the line of Siddharth Purohit from InvesQ Investment Advisors. Please go-ahead. Mister, your line has been unmuted. Can you speak since Mr Siddhart’s line is not reachable, we’ll take the next question.
S.Gurunatha Reddy
We are crossing one-hour. Can you limit the questions please?
Operator
Sure. Participant, it is requested to limit your question to one per participant. The next question is from the line of Shantanu from Mount Infra Finance. Please go-ahead.
Shantanu
Thank you for this opportunity and congratulations for good set of numbers. My question is on Radar. Whatever information we have gathered actually from the public domain that super Super — upgrade program is estimated to the cost approximately INR65,000 crore for the fast phase upgrading 84 jets. If we calculate it, the power radder cost is coming at around INR770 crore. Is it the right way of understanding the price of that radder? And if that is so, then how much — what is our contribution towards Vir Paksha Raddar in percentage terms.
S.Gurunatha Reddy
First of all you know I differ with your numbers as with the information what we have is different and in both in terms of quantity and also the value, number-one. Number two, the — as today, whatever like we have participated in DRD-1 development program for this mid-led upgrade project, which is being sanctioned by Indian Air Force to DRDO. In that the — for the radar and DWD suite, there were multiple tenders which have come from DRDO from different labs. So in that we won both AAAU, which is a major portion of radar as. We won from them. And also in EW, we won critical subsystems to be supplied for the pod jammer. So likewise, we won subsystems from both radar and as well as EW segment INR43.
And once this development phase is over, I think we will be getting a production order from HAA who is a designated production agency or the — you know any other production agency which takes over. But otherwise, these are in development phase. And today we are developing these critical subsystems.
Operator
Thank you thank you, sir. Ladies and gentlemen, in the interest of time, we’ll take this as our last question. I now hand the conference over to the management for the closing comments.
S.Gurunatha Reddy
Thank you, everyone, for being part of this call and I hope we are able to answer most of your questions. And I look-forward to talk to you again at the end of Q1.
Operator
Thank you. On behalf of Estra Microwave Products Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.
Atim Kabra
Thank you very much