India’s ‘Atmanirbhar Bharat’ slogan has proved to be a boon for the defence sector, which has, in the true sense, achieved self-reliance. The country is not only producing for itself but also exporting to other nations. The numbers validate this transformation. India’s defence exports have surged 63% year-on-year to reach a record-high of ₹38,424 crore in FY26.
This growth was led by both the Defence Public Sector Undertakings (DPSUs) and the private sector. The private sector contributed 45% to exports, while DPSUs accounted for the remaining 55%, up from 43.8% last year. India is now exporting defence products to more than 80 countries.
These numbers reflect the growing acceptability of Indian products in global markets and the domestic defence industry’s ability to integrate into the global supply chain. This aligns with the country’s ambitious target of reaching defence exports to ₹50,000 crore by FY29. Along these lines, let’s take a look at three companies that are benefiting from the export market.
#1 Astra Microwave Products: Targets 30% exports with high-margin pivot
Astra Microwave manufactures defence, aerospace, and space electronics, subsystems, and components. This is one of the select companies in India that design and develop radar, tactical, and space electronics systems and subsystems. Astra operates across several key sectors, including Defence, Aerospace, Space, Meteorology, and Telecom.
Pivot to Profitability: Shifting from BTP to Proprietary Designs
In 9MFY26, exports, including deemed exports, accounted for 12% of the company’s total revenue. Throughout this period, exports’ contribution to total revenue fluctuated quarterly. It started at 10.0% in Q1 FY26, peaked at 14.2% in Q2 FY26, and stood at 11.5% in Q3FY26.
The Export Engine: Targeting 30% Revenue Contribution by FY28
Astra aims to increase export revenue contribution to 30% in the next 2-3 years. As of Q3FY26, the standalone order book for the exports segment stood at ₹130 crores. This represents around 6% of the company’s total order backlog of ₹2,226 crore.
A Rs 2,226-Crore Foundation: Analyzing the Current Order Backlog
Astra expects to book incremental export orders ranging from ₹100-125 crore. It expects export revenues to accelerate once it begins bulk production orders based on its own proprietary designs. The export performance directly reflects the company’s ongoing strategic pivot.
Management has been stepping away from high-value but low-margin Build-to-Print (BTP) contracts. Instead, Astra is prioritising higher-margin opportunities. It is continuing to execute its deemed export business alongside select international contracts that offer good profitability.
Exports, including deemed exports, contributed 11.9% to revenue in 9MFY26.
Margin Expansion in Focus: 220 bps Jump Drives 8.7% PAT Growth in 9MFY26
Coming to its financials, Astra’s consolidated revenue grew 4.9% year-over-year to ₹675 crore in the first nine months of FY26 (9M FY26). Its operating margin also expanded by 220 basis points (bps) to 25.4%. As operating leverage kicked in, consolidated profit after tax (PAT) grew 8.7% to ₹87 crore.
The ₹10,000-Crore Vision: Astra Eyes Doubling Turnover with ₹7,500-Cr Sales Target
Astra expects to reach revenue of ₹1,150 crore in FY26, up 10% year-on-year. Order inflows for FY26 are estimated at around ₹1,450 crore, with ₹550 crore expected in Q4 alone. Astra’s long-term profitability is expected to benefit from high operating leverage.
Further, management is confident of 15% revenue growth in FY27 and aims to secure new orders worth ₹1,500-1,600 crore. The FY27 pipeline will be driven by defence PSU contracts (such as QRSAM) and indigenous Electronic Warfare orders (such as Nayan, Medhas, Samudrika, and Dharashakti).
Over the next 3 to 4 years, Astra expects its turnover to more than double. Cumulatively over the period, Astra expects to receive new order bookings of ₹8,000-10,000 crore, translating into concurrent sales of over ₹7,500 crore.
The Road to FY28: Capturing an ₹8,000-Cr Share of the Defence Market
The overall industry backdrop is highly favorable due to the government’s push for defence modernization and self-reliance. Astra estimates a massive Total Addressable Market of ₹24,000-₹30,000 crore across all sectors through FY28. Of this, it expects to successfully capture around ₹8,000 crore.
#2 Data Patterns: The NATO-ready defence gem
Data Patterns is a fully integrated defence and aerospace electronics solutions provider. It focuses on in-house design, prototype testing and qualification, production, and manufacturing of electronics systems.
The company’s customers include the Ministry of Defence, Defence Public Sector Undertakings, DRDO, and the private sector. It possesses domain expertise in key areas of defence electronics, including Radars, electronic warfare, Communication systems, Avionics, and satellites.
As of Q3FY26, Data Patterns holds an export order book of ₹63 crore. In the most recent quarter of this period (Q3FY26), exports accounted for 9.6% (up from 6% in FY24) of its revenue. Building a strong export business is a core pillar of the company’s long-term growth strategy.
The NATO Pivot: Securing predictable revenue beyond domestic project cycles
Management is building a dedicated export-focused marketing and business development team early next year. The goal is to establish a steady, scalable international business over the next two to three years. It also sees a big opportunity in Europe due to increased defence spending by NATO (North Atlantic Treaty Organisation).
Management noted that the domestic defence market is project-based and prone to delays. By expanding into international markets, it aims to secure recurring, predictable revenue streams that will help balance out domestic unpredictability.
Exports accounted for 9.6% of the Revenue Mix in Q3FY26.
Growth vs. Gritty margins: Analyzing the 86% revenue surge in 9M FY26
The company’s revenue increased 86% year-on-year to ₹580 crore in 9MFY26. EBITDA increased 42% to ₹178 crore, with margin falling by 949 bps to 30.7%. PAT increased by 23.4% to ₹133 crore. Raw material costs rose to 42.8% of revenue, up from just 23.6% previously, impacting the company’s margins.
Visibility Beyond FY28: Decoding the ₹1,868-Cr Order Backlog
Looking ahead, management aims to deliver a 20% to 25% revenue growth over the next two to three years. The company expects to maintain healthy margins of around 35% to 40% in FY26. It boasts an all-time high order book of ₹1,868 crore, providing strong revenue visibility of over 2 years. It expects to secure another ₹500 crore of order inflows in Q4.
Scaling the Pipeline: Investing in R&D for a ₹20,000-Cr Market Opportunity
Looking further ahead, Data Patterns anticipates a strong order pipeline of ₹2,000-3,000 crore over the next 18 to 24 months. Data Patterns is also investing in large product development programs. This is expected to expand their Total Addressable Market (TAM) to ₹15,000 crore to ₹20,000 crores (and potentially beyond) over the next three to five years.
#3 MTAR Technologies: The ₹2,800-Cr Order Book Giant with 4-Year Revenue Visibility
MTAR Technologies operates across the Nuclear, Clean Energy, Defence, and aerospace sectors. It views the aerospace and defence sector as a highly promising growth engine at a structural inflection point.
Global Footprint: Leveraging Israel Aerospace Partnerships to Drive 19% Export Mix
Exports constitute a key pillar of MTAR’s comprehensive strategy. Its global aerospace clientele comprises defence companies, including major international players such as Israel Aerospace Industries. Across the company, exports accounted for 19% of total revenue in 9MFY26 and 16% in Q3FY26.
This momentum is being propelled by recent European defence security initiatives, alongside a robust push by the Indian government to expand the country’s defence exports. In 9MFY26, MTAR generated about ₹72 crores in revenue from the aerospace and defence segment. The overall unexecuted order book for this combined sector stands at a stable ₹325 crore.
The Geographical Revenue-Mix
MTAR is actively expanding its export portfolio. It recently qualified for exporting ball screws to a multinational customer and has already commenced export shipments. Beyond export, MTAR is actively engaged in domestic defence and naval manufacturing programs.
The Inflection Point: Transitioning from Prototypes to High-Volume Batch Production
Management anticipates exponential growth in this vertical as MTAR graduates from producing prototype First Article inspections into high-volume batch production. Over the next 3 years, MTAR expects revenues from its multinational aerospace division alone to scale significantly, targeting ₹350-₹400 crore annually.
The AMCA Milestone: Securing a critical role in India’s Next-Gen Combat Aircraft
MTAR has begun participating in tenders for structural assembly for the Advanced Medium Combat Aircraft next-generation program. They recently achieved a major milestone by being declared the L1 (lowest) bidder for the main landing gear test setup assembly.
Although the value of this initial prototype order is approximately ₹4 crore, management states that as this program progresses, its requirements will increase significantly. MTAR also manufactures critical roller screws that serve as import substitutes for Indian defence and naval submarines.
Financial Fortitude: 27% PAT Surge Backed by a Record ₹2,800-Cr Order Backlog
From a financial standpoint, revenue increased 15.7% year-on-year to ₹570 crore in 9MFY26. EBITDA increased 26.2% to ₹109 crore, with margin rising by 160 bps to 19.2%. PAT increased by 27.0% to ₹49.7 crore. MTAR anticipates an end-of-year order book of approximately ₹2,800 crore, providing revenue visibility of over 4 years.
Comparing the Giants: Valuations and Return Ratios
Data Pattern’s return ratios (Return on Capital Employed and Return on Equity) are the strongest among peers, followed by Astra. In terms of valuation, Astra is trading close to its historical and industry median multiples.
Data Patterns is trading at a premium relative to the industry, while MTAR continues to trade at a significant premium compared to both its own and industry multiples.
| Valuation Comparison (X) | ||||
| Company | P/E | 5Y Median P/E | RoCE (%) | RoE (%) |
| Astra Microwave | 54.5 | 55.2 | 18.7 | 14.4 |
| Data Patterns | 68.0 | 68.8 | 21.0 | 15.2 |
| MTAR | 165 | 87.8 | 10.5 | 7.5 |
| Industry Median | 52.4 | – | 18.7 | 14.4 |
| Source: Screener.in (Data as of 6 April 2026) | ||||
India’s defence export story is gaining depth, with exports rising 63% to ₹38,424 crore and a target of ₹50,000 crore by FY29. Yet, execution remains the key differentiator. Companies with strong design capabilities, scalable order books, and improving margins are better placed. However, elevated valuations warrant disciplined tracking.
It’s worth keeping them in your watchlist.
Disclaimer
Note: Throughout this article, we have relied on data from http://www.Screener.in and the company’s investor presentation. Only in cases where the data were not available have we used an alternative, widely used, and accepted source of information.
The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
About the Author: Madhvendra has been deeply immersed in the equity markets for over seven years, combining his passion for investing with his expertise in financial writing. With a knack for simplifying complex concepts, he enjoys sharing his honest perspectives on startups, listed Indian companies, and macroeconomic trends.
A dedicated reader and storyteller, Madhvendra thrives on uncovering insights that inspire his audience to deepen their understanding of the financial world.
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