India’s capabilities in space-based surveillance have evolved over the last 15 years. It has transitioned from a reliance on basic reconnaissance satellites to advanced satellite-based Intelligence, Surveillance, and Reconnaissance systems for military applications.
To build these capabilities, India has successfully launched specialized satellite networks such as the RISAT (Radar Imaging Satellite), Cartosat, and GSAT series. They were specifically designed for surveillance and secure communications. Now, the country is advancing it one step further.
According to reports, India is fast-tracking its ₹27,000-crore Space-Based Surveillance (SBS)-III programme. The project involves a constellation of 52 surveillance satellites to monitor neighbouring borders and the Indian Ocean region.
The programme was approved in October 2024. However, it has returned to the spotlight after reports suggested that the government plans to strengthen monitoring of the border and the Indian Ocean Region.
The first satellites are expected to launch in 2026, with the full network targeted by 2029. Of the 52 satellites, 31 are proposed to be built by private-sector companies, putting defence and space stocks in focus. Against this backdrop, this article focuses on three players active in space surveillance.
#1 Astra Microwave Products: This Vendor Built 90% ISRO Electronics
Astra Microwave Products has been a key partner in building these indigenous space-based surveillance systems. Astra has been actively engaged in India’s space program for 25 years.
Why Astra’s 25-Year Link to ISRO Positions It for the Private Satellite Chunk
Astra has acted as a highly trusted supplier to the Indian Space Research Organisation (ISRO) and the Space Applications Centre (SAC). It provides specialized RF components for both satellites and launch vehicles.
The space and meteorology segments contributed approximately 16% of revenue during FY26. On the other hand, Sales to ISRO and the SAC accounted for 6.4% of revenue.
The company’s involvement in major projects is substantial. For example, when ISRO developed the RISAT (Radar Imaging Satellite) in 2015, Astra supplied 90% of the electronics for the project. To date, the company has contributed to the development of 25 satellites.
In Q4 FY26, Astra secured orders to supply checkout hardware for ISRO’s prestigious Gaganyaan mission. Further, Astra successfully delivered highly complex subsystems for a unique defence space program over the last year. And they anticipate repeat orders as the end-user plans to build an entire constellation of these defence satellites.
Beyond space, Astra is a Tier-1 systems manufacturer in the surveillance space. It has delivered complete ground-based surveillance radar systems, active antenna array units for platforms like the Su-30 and Light Combat Aircraft, and various tracking radars to the DRDO and the Indian military.
Corporate Restructuring: Demerging to Unlock Space Value
Astra is restructuring its corporate framework to give the space sector undivided attention. It is demerging its Space, Meteorology, and Hydrology business undertakings into an independent entity. The spin-off aims to create a separate space-focused business and unlock shareholder value.
Astra aims to move up the space value chain and launch its own basic satellite within the next 2-3 years. To that end, it has begun recruiting personnel and setting up basic infrastructure for satellite integration at its Bengaluru facility.
Order Pipeline: Quantifying Astra’s FY27 Inflow Targets
As of March 2026, Astra standalone order book stands at a robust ₹2,141 crore. Management expects approximately ₹1,600 crores in total new order bookings for FY27. Of this, the space and meteorology segments are projected to contribute around 25%.
#2 Data Patterns: Targets 3-Year Backlog Shield
Data Patterns is strategically positioning itself to address immediate requirements in strategic space-based surveillance and mitigation. The company anticipates that these opportunities will substantially increase its revenue in the coming years.
Deep-Space Hardware: The Alpha and Bravo Radar Systems
Management emphasized that they are addressing these space-surveillance opportunities with large, complex systems. Data Patterns has developed these systems in-house and delivered them to customers.
This includes technological undertakings such as the Alpha Radar (S-Band Space Surveillance and Tracking Radar) and the Bravo Radar (UHF Bi-Static Radar). The company builds the Alpha Radar, one of India’s largest indigenous radar systems. The entire system is housed within a massive 20-meter spherical radome.
Turnkey Capabilities: Managing Infrastructure Beyond Electronics
The Bravo Radar is used to detect targets at distances of thousands of kilometers. Both systems detect deep-space targets at ranges of several thousand kilometers. The company provides these as complete turnkey solutions. This means Data Patterns takes responsibility not only for the radar electronics but also for all associated civil.
High Valuation vs. Execution: Data Patterns’ 3-Year Backlog Strategy
Management expects these strategic surveillance opportunities to help build a strong order book equivalent to at least 3 years’ revenue. Securing this level of backlog is intended to ensure “predictable growth” for the company over the long term. This aligns with its goal of achieving long-term revenue visibility.
In addition to these large-scale radar systems, it has a long-standing history of collaboration with ISRO. Their broader space and aerospace capabilities include the design and development of small and nano satellites, satellite subsystems, and ground stations. Notably, it successfully built a nano satellite that was deployed into space in 2017.
As of 15 May 2026, the company’s order book pipeline had grown to ₹2,062 crore, which includes both orders already received and those successfully negotiated. This is the largest order book in the company’s history, providing revenue visibility for years to come.
#3 Bharat Electronics: Giant Transits Into LEO Satellite Constellations
Bharat Electronics (BEL) is actively expanding its footprint in space-based surveillance. It is a qualified partner of the ISRO for the Assembly, Integration, and Testing of satellites. It has successfully completed the AIT of three RISAT satellites at ISRO’s premises.
Payload Development: Transitioning to LEO Constellations
RISAT is well-known as India’s series of radar imaging reconnaissance and surveillance satellites. In addition, BEL has collaborated with ISRO to develop indigenous receivers for the Indian Regional Navigation Satellite System, which are vital for tracking and positioning.
Further, BEL is working with Indian industries and OEMs to jointly develop high-throughput and LEO satellite constellations. LEO constellations are key infrastructure for continuous monitoring and surveillance. BEL is also planning to set up its own manufacturing facility for space-based payloads for LEO satellites and defence space-related projects.
The strategy is to enter into joint ventures with private players to become a prominent player in space-based assets and payloads. The opening of the space sector to private industry is a major driver of growth. BEL sees Space Electronics as a key pillar of its diversification strategy.
Financial Defense: Anchoring Growth with a ₹73,882-Crore Backlog
It plans to generate a larger share of its revenue from this and non-defence segments in the years ahead. As of 31 March 2026, BEL’s order book position stands at a strong ₹73,882 crore. To sustain its projected revenue growth trajectory of more than 15%, BEL is targeting an order inflow of more than ₹55,000 crore for FY27.
Corporate Valuations: Analyzing the Sector Premia and Returns
On the back of superior profitability growth and consistent execution, BEL boasts one of the industry’s leading Return on Capital Employed (ROCE) and Return on Equity (ROE). In terms of valuation, Data Patterns and Astra are trading at a premium to the industry and 5-year historical median. In contrast, BEL trades at a discount to its historical and industry median levels.
| Peer Comparison (X) | ||||
| Particulars | Price-to-Earning Multiple | Return Ratios | ||
| Company | 5-Year Median | ROE (%) | ROCE (%) | |
| Data Patterns | 84.5 | 69.8 | 16.8 | 23.3 |
| Astra Microwave | 69.1 | 56.3 | 16.0 | 20.2 |
| Bharat Electronics | 49.9 | 35.5 | 27.6 | 36.5 |
| Industry | – | 60.4 | 12.6 | 16.2 |
India’s ₹27,000-crore SBS-III programme marks the next phase of its space-based surveillance capabilities. With 52 satellites planned and 31 expected to be built by private players, the opportunity extends beyond satellite manufacturing.
Astra, Data Patterns, and BEL are already embedded in India’s defence and space ecosystem. However, much depends on whether these companies can secure orders from the project pipeline. As strong contenders, it’s worth keeping these stocks on your watchlist to track actual order inflow and execution.
Disclaimer
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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.
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