Astra Microwave Products Limited (NSE: ASTRAMICRO) has recommended a final dividend of ₹2.4 per equity share for FY2025-26, as approved by its Board of Directors on May 26, 2026. Separately, on June 10, 2026, the board approved a Scheme of Arrangement under which the company will act as the demerged entity, marking a significant structural development disclosed under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Dividend Details

The recommended final dividend of ₹2.4 per equity share is payable on shares with a face value of ₹2 each, implying a payout that is 120% of face value. With quote data unavailable at the time of publication, the dividend yield calculation will need to be assessed against the prevailing market price once confirmed. Investors should note that the dividend is subject to shareholder approval at the upcoming Annual General Meeting before disbursement.

Dividend History and Growth Trend

The latest payout reflects a steady and accelerating upward trajectory in Astra Microwave's dividend track record over the past decade:

The FY2026 dividend of ₹2.4 per share represents a 50% increase over the FY2023 payout of ₹1.6 per share, and a 71% increase over the FY2022 figure of ₹1.4 per share. The compound growth in dividends since FY2019, when the payout dropped to a decade-low of ₹0.25, has been particularly sharp, underscoring improving profitability and stronger free cash flow generation in the defence electronics segment.

Scheme of Arrangement: Demerger Disclosure

The June 10, 2026 board meeting resulted in the formal approval of a Scheme of Arrangement, with Astra Microwave Products Limited designated as the Demerged Company. The announcement was made pursuant to Regulation 30 of the SEBI Listing Regulations, which mandates timely disclosure of material corporate events. The scheme details, including the nature of the business or division being demerged and the resulting entity, are expected to be filed with the relevant stock exchanges and the National Company Law Tribunal (NCLT) in due course. Shareholders should monitor further regulatory filings for specifics on the demerger structure, appointed date, and share entitlement ratio.

Company Background

Astra Microwave Products Limited is a Hyderabad-based defence and space electronics manufacturer, supplying RF and microwave sub-systems to organizations including DRDO, ISRO, and the Indian Armed Forces. The company operates in a strategically sensitive segment that has benefited from India's push toward indigenous defence procurement under the Atmanirbhar Bharat initiative.

What This Means for Investors

The combination of a growing dividend payout and a board-approved demerger scheme introduces two distinct considerations for existing shareholders. The rising dividend trend signals management's confidence in sustained earnings. The demerger, once its structure is clarified, could result in value unlocking if discrete business segments are separated into independently listed entities. Investors are advised to track NCLT filings, the record date for the FY2026 dividend, and further disclosures on the demerger scheme as they become available through NSE and BSE announcements.