India’s space economy is still small. But not for long.
According to the Ministry of Statistics and Programme Implementation, the sector was valued at just US$ 8.4 billion in 2023, accounting for barely 2% of the global space economy.
Over the next decade, however, that number is expected to jump more than 5X to $44 billion (around ₹4.2 lakh crore) by 2033. With this, India’s space economy could account for 8% of the global space economy. By 2040, India is targeting a $100 billion space economy with a 10% global share.
And this time, Indian Space Research Organisation (ISRO) is not the only player in the race.
The government has opened the sector to private companies through the Indian Space Policy 2023, relaxed Foreign Direct Investment rules, and created a ₹ 1,000-crore venture capital fund alongside a ₹ 500-crore technology adoption fund.
Private firms are now getting access to ISRO’s testing facilities, satellite platforms, launch infrastructure, and technology transfers. That shift is already creating a new layer of listed beneficiaries beyond traditional defence names.
Companies involved in satellite components, propulsion systems, precision manufacturing, electronics, and launch infrastructure are quietly positioning themselves for India’s next manufacturing and technology cycle.
The $44B Revenue Pipeline: Why the 2026 Space Cycle is Different
Against this backdrop, we examine three stocks that are expected to benefit from the expansion of the space ecosystem.
#1 Astra Microwave: India’s Leading Integrated Payload Specialist for Strategic Missions
Astra Microwave Products first engaged in a partnership with ISRO around 25 years ago in the areas of ground-based cum satellite-based electronics. However, 2004 proved to be a significant milestone when ISRO opened up the broader space sector to the private sector.
The ISRO Legacy: From Component Supplier to Strategic Partner
Astra achieved a major milestone in 2015 with the RISAT project, in which it collaborated with ISRO to supply around 90% of the satellite’s electronics. To date, the company has contributed to 25 satellites and 15 strategic programs.
Astra supplies radio-frequency and microwave components essential for communication, navigation, and remote sensing in satellites and launch vehicles. The space business accounts for just 2.3% of revenue. But this could increase, given the expanding order book.
Order Book Analysis: Why Space is the Next Revenue Multiplier
As of 31 December, 2025, Astra’s space sector order book stands at ₹249 crore. This constitutes a significant portion of the company’s total order book, which crossed the ₹2,000 crore mark at the end of this quarter, reaching ₹2,226 crore. This order book is 2X FY25 revenue.
Payload vs. Launch: Decoding the ₹249 Crore Space Pipeline
A major portion of the space order book is dedicated to satellite payload electronics, which are primarily being built by ISRO for strategic applications. Only a small fraction, approximately 5% to 6% of the total space order book is attributed to launch vehicle electronics.
Astra has identified the space sector as a major long-term growth driver. It expects to maintain a similar order book of repeat orders in the same configuration over the next two to three years. The company expects space opportunities to be worth around ₹600 crore.
The 2026 Roadmap: Astra Space Technologies and the Vertical Shift
To strengthen its presence in the space sector, Astra incorporated its wholly owned subsidiary, Astra Space Technologies, in February 2024. This subsidiary designs, develops, integrates, and manufactures satellites and payloads, and establishes ground stations for satellite tracking.
Strategic Demerger: Sharpening Focus for Direct Market Entry
The company aims to qualify for the satellite integration and launching business, and plans to build and launch its own basic satellite with a payload within 2-3 years. After successfully launching its own satellite, the company aims to address end markets directly. To sharpen focus, the company is demerging its space, meteorology, and hydrology businesses.
#2 Mishra Dhatu Nigam: ISRO’s 40-Year Metallurgy Foundation with ‘Materials on the Moon
The Public Sector Undertaking,Mishra Dhatu Nigam (MIDHANI), plays an extremely strategic and foundational role in India’s space exploration efforts. For over 40 years, MIDHANI has been supplying critical minerals (special steels and alloys) to ISRO. Over the past decade, the space sector has been a key driver of MIDHANI’s business.
The Metallurgy of Missions: Supplying Maraging Steel and Titanium
ISRO is MIDHANI’s biggest customer for maraging steel. MIDHANI’s high-performance materials are used in every stage of an ISRO launch. This includes everything from the solid rocket motor boosters that ignite on the ground during PSLV and GSLV launches, to the liquid engines and upper-stage cryogenic engines.
2026 Outlook: From Gaganyaan to the NISAR Mission
Furthermore, MIDHANI also supplies titanium raw materials for every satellite propellant tank and gas bottle used across all stages of its launch vehicles. MIDHANI’s materials were used in the historic lunar mission. The management even proudly stated, “Our material is on the Moon.” MIDHANI’s materials will be heavily used in upcoming missions scheduled for 2026.
This includes the Gaganyaan (G1/2/3) and Mangalyaan missions.
It is also supplying key components, such as C-103 alloy thrust chambers and titanium alloy products, for the GSLV-F16/NISAR Mission. In FY25, the space sector contributed ₹121 crore to the total revenue of ₹1,074 crore. Additionally, during the same financial year, the company secured new orders worth ₹156 crore from the space sector.
MIDHANI’s Strategic Moat: Why Lead Times are the Secret Metric
MIDHANI enjoys strong order visibility because ISRO operates on a strictly planned calendar. ISRO back-calculates the required lead times and places orders for fundamental raw materials, such as plates, sheets, bars, and ring-rolled rings, at least two years in advance of a mission.
Subsequently, ISRO’s subcontractors use these materials to manufacture rocket boosters, liquid engines, and cryogenic engines. Leadership plays an important role in strengthening MIDHANI’s presence in the space sector.
MIDHANI’s Institutional Memory: The ISRO-VSSC Connection
Dr. S.V.S. Narayana Murthy, the current Chairman and MD of MIDHANI, has worked at ISRO’s Vikram Sarabhai Space Centre and the Liquid Propulsion Systems Centre (LPSC). At LPSC, he oversaw the indigenization and supply of materials for earth-storable, cryogenic/semi-cryogenic stages, as well as satellite propulsion systems, for the Indian space program.
#3 Centum Electronics: The ISRO Systems Integrator Scaling the High-Margin ‘BTS’ Business
Originally an Electronic Manufacturing Company, Centum Electronics has a well-established presence in the Space sector. Space, alongside Defence and Aerospace, accounted for 56% of revenue in FY25. The company’s connection to ISRO is rooted in its leadership.
Centum’s Systemic Advantage: From Components to Integrated Payloads
Centum’s Chief Technology Officer (CTO), Dr. Vinod Chippalkatti, worked at ISRO for a decade before joining Centum. During his tenure at ISRO, he contributed to the development of India’s first series of communication satellites. Leveraging his deep domain expertise, he leads Centum’s Build-to-Specification (BTS) business in India.
He oversees the supply of critical solutions for satellites, launch vehicles, and other strategic platforms. Additionally, he is a member of the Executive Committee of the Indian Space Association. Beyond the CTO, the MD (Apparao V. Mallavarapu) and an Independent Director (Kavita Dutt Chittoori) are also actively involved in the space industry.
The BTS Engine: Driving 49% of the Current Order Book
The BTS segment takes a project from conceptualization to mass production. The division is at the forefront of developing and localising critical technologies. The space offerings fall under the BTS division, which contributed 29% of total revenue in 9MFY26. The division also accounts for 49% of the order book.
Vertical Integration: Scaling from Components to Satellite Payloads
Centum is actively transitioning from being a supplier of individual components to a partner in the complete development of satellite payloads and integrated systems. Through its high-entry barrier BTS division, it is focusing on delivering mission-critical, end-to-end solutions.
This includes earth observation satellite subsystems, small satellites, payload integration, and satellite cluster applications.
Infrastructure Boost: The KIADB Aerospace Park Expansion
The company states that, due to technological advancements, demand is rising across commercial, military, and scientific space exploration. Therefore, the space sector is a key driver of growth. To capitalize on these opportunities, Centum is actively expanding its infrastructure.
The company is setting up a dedicated systems integration facility at the KIADB Aerospace Park in Bengaluru. This will augment its capabilities in critical space and defense technologies.
The Valuation Check: Is $44 billion Opportunity Already Priced In?
With superior growth and profitability, Astra Microwave India leads the return ratios (Return on Capital Employed (ROCE) and Return on Equity (ROE)) chart.
On the other hand, Centum Electronics continues to report losses at the bottom line due to high interest and depreciation expenses. But its revenue growth and operating performance have remained steady. This is partly reflected in its 12% ROCE, even as ROE remains negative.
From a valuation perspective, both Astra and MIDHANI are trading at a premium relative to their 5-year historical median, but at a discount to the industry median. While Centum is trading at a premium to both its median and industry EV/EBITDA multiple.
| Valuation Comparison (X) | |||||
| EV/EBITDA Multiple | Return Ratios | ||||
| Company | Company | 5Y Median | Industry | ROCE (%) | ROE (%) |
| Astra Microwave | 33.6 | 28.8 | 41.7 | 18.7 | 14.4 |
| Mishra Dhatu Nigam | 33.0 | 24.6 | 10.6 | 8.1 | |
| Centum Electronics | 33.7 | 22.8 | 16.5 | 12.0 | -3.1 |
| source: screener.in (Data as of 13th May 2026) | |||||
India’s space economy may still account for just 2% of the global market today, but the tailwind ahead is structural. With the sector projected to grow from $8.4 billion in 2023 to $44 billion by 2033, private participation is becoming central to India’s next technology cycle.
Companies supplying critical materials, electronics, payloads, and satellite systems could emerge as long-term beneficiaries of this structural shift. Against this backdrop, investors may consider keeping these stocks on their 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 unavailable have we used an alternative, widely accepted, and widely used 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.
Disclosure: The writer and his dependents do not hold the stocks discussed in this article.
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