In the previous story, we looked at how the ₹2.38 lakh crore defence approvals are opening up a multi-year opportunity for these three companies. But this capex cycle is far wider. And the opportunity is not limited to just these three players. In fact, another set of companies is quietly positioning itself to capture a meaningful share of this defence push.
At the product level, the approvals span missiles, artillery systems, aircraft, surveillance radars, communication systems, and Unmanned Aerial Vehicles (UAVs). This implies a broad-based opportunity rather than a single-segment cycle. Let us now delve deeper into the three other companies.
#1 Astra Microwave Products: The Brains Behind the QRSAM and Tejas Radars
Astra Microwave Products has deep exposure to radar and missile systems. The company is actively transitioning from a component supplier to a strategic subsystem and complete-systems partner for these high-technology defence platforms.
The QRSAM Catalyst: Tapping into the ₹30,000-Crore Opportunity
Astra has direct exposure to the ₹30,000 crore Quick Reaction Surface-to-Air Missile (QRSAM) program. The development of the QRSAM was accelerated by Astra’s in-house research. The company utilized critical radio-frequency and digital control-integration technology it originally developed for the indigenous Uttam AESA radar to support the QRSAM project.
During Q3FY26, the company also delivered telemetry products and related components for the QRSAM. Management anticipates receiving additional production orders for the QRSAM program from public-sector companies such as BEL in Q1FY27. Radar electronics is Astra’s most significant growth driver.
Scaling High-Frequency Growth: The 20% CAGR Radar Market
The Indian radar market is projected to grow at a 20.6% CAGR, reaching nearly US$ 1.4 billion (around ₹13,000 crore) by 2033. Astra views Radar as a ₹ 10,000-crore opportunity over the next few years. To this end, Astra developed the Active Aperture Array Unit for the indigenous Uttam AESA radar used in the LCA Tejas.
Air Dominance: Leveraging AESA Tech for LCA and Sukhoi Platforms
This success has allowed Astra to leverage the same AESA technology for the LCA Mk II and the AESA Radar for the Su-30 MKI fighter jets. Management notes that supplying complex systems for both the Tejas and the Sukhoi (Su-30) platforms grants AMPL a highly competitive edge.
Beyond Components: Capturing the Su-30 Electronic Warfare Suite
Today, Astra supplies high-level radio-frequency and digital control-integration technologies for the Su-30 MKI’s AESA radar systems. Thus, the overhaul of the Su-30 aero-engine could also benefit Astra and Hindustan Aeronautics, of course. Astra even recently secured a strategic win to provide Electronic Warfare (EW) suites for the Su-30 aircraft.
#2 Solar Industries: Powering Missiles and Addressing Global Ammunition Gaps
The Defence Acquisition Council also cleared the procurement of 155mm Dhanush howitzer gun systems. Solar Industries is actively involved in manufacturing the ammunition used by these systems. 155mm artillery shells are a major product line for the company, addressing a critical global shortage. Notably, 155mm ammunition is the standard caliber for NATO field artillery.
The 155mm Opportunity: Bridging the Global NATO-Standard Shell Shortage
Its presence in Türkiye, a key NATO ally, has opened up the European market for the company. Thus, Solar is expected to benefit not only from European demand but also from domestic demand. The company started working on 155 mm shells last year and has already commenced production. Management is currently awaiting the final round of qualification for these shells.
Thus, management said demand is rising due to a global shortage of 155mm shells, and they expect the product to improve their defence numbers once commercial production begins in Q4FY26. The company’s Nagpur plant is the world’s largest single-location cartridge plant.
Strategic Propellants: Powering India’s BrahMos and Akash Missile Programs
Beyond this, missiles and radars also present a significant opportunity. The company supplies indigenous booster systems, such as the Solid Propellant Booster, for the BrahMos missile. In addition, it manufactures composite propellants for the Akash surface-to-air missile system and the Pinaka multiple rocket launcher system.
The Pinaka Long-Game: Securing a Decade of Consistent Revenue Stream
The Pinaka Rocket is a major defence product line for Solar, involving a series of rocket ammunition systems. Management states that the Pinaka project is not a one-time order but a long-term project expected to last 7-10 years. Thus, the project is expected to deliver consistent annual business over the next decade.
Q4FY26 Commercial Pivot: Scaling Toward the ₹3,000-Crore Revenue Target
The supply of Pinaka rockets was earlier confirmed to commence in Q4FY26. The company is also actively adding new variants of the Pinaka rocket to its portfolio. This will further expand the business volume once qualified and inducted. Management stated that once Pinaka starts moving in Q4, the defence numbers will be much, much better. It aims to reach ₹3,000 crore revenue in FY26.
#3 Zen Technologies: Riding the 35% Counter-Drone Growth Wave
Zen Technologies is deeply invested in the Unmanned Aerial Vehicle (UAV) and surveillance ecosystem. It provides Intelligence, Surveillance, and Reconnaissance platforms equipped with advanced day, night, and thermal video sensors.
The Vyomkavach Shield: Leading India’s ₹4,000-Crore Counter-Drone Market
Zen manufactures core UAV components, including BLDC motors, electronic speed controllers, propellers, and starter generators. Zen is also the leading supplier of multi-layered anti-drone systems (like the Vyomkavach). This system detects, tracks, and neutralizes hostile drones using radio frequency jamming and hard-kill kinetic options.
Management expects continued growth in demand for drone technologies, anti-drone systems, and surveillance platforms. It forecasts that the Indian counter-drone market will grow at a staggering 34.8% CAGR, reaching $430 million (around ₹4,000 crore) by 2030.
Q3FY26 Order Book Analysis: The 50/50 Split Between Anti-Drone and Simulator
In Q3FY26, Zen secured a ₹245 crore order for the upgradation of Anti-Drone Systems and an additional ₹37 crore order specifically for Anti-Drone Systems with hard-kill capabilities. This highlights a segment with strong growth potential in evolving modern warfare. As of early 2026, Zen’s total order book is split roughly 50/50 between anti-drone systems and simulators.
Naval Expansion: Subsystems for the ₹40,000-Crore Next-Gen Corvette Program
Recall that the project also includes the Next-Generation Corvette Program worth ₹40,000 crore (8 ships). To this end, Zen provides critical subsystems and training modules for naval vessels such as corvettes. It is currently developing an integrated Naval Training Centre.
Zen manufactures the Sharur Naval RCWS, designed specifically for maritime use to engage threats up to 2 kilometers away. It offers the Barbarik-URCWS, which can be mounted on a naval vessel. Zen is also present in naval training, supplying tactical trainers, marine simulations, and submarine simulators.
Furthermore, Zen is engaged in designing and developing Electronic Warfare, Communications, and radar systems. It provides command links, communication intelligence, and drone-based electronic warfare systems to government and defence clients.
Training the Frontline: Specialized Simulators for Dhanush and Modern Armor
It specializes in simulators for training the crews that operate defence systems. Zen doesn’t manufacture the 155mm Dhanush Howitzer Gun System, Armor-Piercing Tank Ammunition, or even missile systems. But it specializes in simulators used to train crews operating these defence systems.
Valuation Verdict: Strong ROE vs. Premium Pricing
Solar Industries’ return ratios (Return on Capital Employed and Return on Equity) are the strongest among all three, followed by Zen and Astra. In terms of valuation, BEL is trading very close to its historical and industry median multiples. Solar continues to trade at a big premium to its 5-year median valuation, while Zen’s valuation has eased.
| Valuation Comparison (X) | |||||
| Company | P/E | 5Y Median P/E | Industry Median | RoCE (%) | RoE (%) |
| Astra Microwave | 60 | 55.2 | 57.5 | 18.7 | 14.4 |
| Solar Industries | 87.7 | 71.4 | 25.1 | 38.1 | 32.6 |
| Zen Technologies | 53.1 | 80.1 | 57.5 | 37.2 | 26.1 |
| source: screener.in (Data as of 10 April 2026) | |||||
The ₹2.38 lakh crore defence pipeline is now extending beyond frontline PSUs to specialised players such as Astra, Solar, and Zen. The opportunity spans missiles, artillery, UAVs, and electronic systems, creating a multi-year order flow rather than a one-time cycle. push.
This is expected to support the order book of defence players, which has declined of late. As contracts materialise, these companies could emerge as critical enablers of India’s defence manufacturing. While execution and order inflow remain key, despite elevated valuations across all three players, it’s worth keeping these stocks 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 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.
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