The space race used to be a rich-nation flex. America, Russia, and then China shot rockets into orbit while the rest of the world watched on livestreams.
But India rewrote that script, landing near the Moon's south pole before anyone else, and placing an observatory in orbit to study the Sun from space. And it did so on budgets that wouldn't cover a single Hollywood space movie.
Now, ISRO is throwing open its doors to private players, the government is loosening foreign direct investment (FDI) rules, and a sector once locked behind government gates is suddenly buzzing with companies building satellites, propulsion systems and launch tech.
For investors, it’s a rare chance to get in early on an industry that's quite literally shooting for the stars.
Here are three space stocks in India with worth watching.
#1 Data Patterns
Data Patterns has quietly become a key behind-the-scenes player in India's space journey. From building parts to exact ISRO standards at its approved facility, to designing specialised nano satellite buses for low-cost, quick-turnaround missions, the company is deeply embedded in the space tech ecosystem.
It also develops ground stations that help relay mission data and has been supporting ISRO for over two decades with automated test systems for launch vehicles such as the Polar Satellite Launch Vehicle (PSLV) and Geosynchronous Satellite Launch Vehicle (GSLV).
Data Patterns has also contributed to automating launch pads at the Satish Dhawan Space Centre Sriharikota Range (SDSC-SHAR), proving just how broad and critical its role is in powering India's space ambitions.
Under the defence satellites programme, there will be a massive need for advanced electronic systems — both on the satellite (payload) and on the ground. These include control systems, power management, communication modules, and ground-based test and launch support. These are areas where Data Patterns already has strong capabilities.
The company’s sales and net profit have expanded at a compound annual growth rate (CAGR) of 35% and 60%, respectively over the past five years. Its return on equity (ROE) and return on capital (ROCE) have averaged 16% and 24%, respectively over this period.
According to the company’s latest earnings, the order book was at a record high of ₹1,870 crore, covering nearly two years of revenue based on FY25 revenue of ₹700 crore.
Radars make up 62% of the order book, followed by electronic warfare (12%), avionics (10.4%), annual maintenance contracts (6%), fire control systems (2.7%), and automated test equipment (2.6%).
The order pipeline is ₹2,000-3,000 crore over the next 24 months. Of this, orders worth about ₹1,100-crore have already been finalised.
Management has said its internally funded development programs, including next-generation fire control radars and airborne electronic warfare suites, target a significant market opportunity. It estimates the total addressable market (TAM) for these programmes is ₹15,000-20,000 crore. Management expects its current development orders to translate into multithousand-crore repeat production orders over the next three to five years, once these systems complete flight certification and enter active service.
#2 Mishra Dhatu Nigam
Majority owned by the government of India, the company manufactures a variety of super alloys, titanium and titanium alloys, special-purpose steels, controlled-expansion alloys, soft magnetic alloys, electrical-resistance alloys, molybdenum products, and other special products made as per specification. It also offers metallurgical testing, evaluation and consultancy services.
Its quality control is recognised by the National Accreditation Board of Laboratories. It is under the administrative control of the defence ministry’s department of defence production. It generates close to 40% of total revenue from the space sector, having developed and supplied critical materials for Aditya L1 and Chandrayaan 3.
Sales have clocked a CAGR of 9% over the past five years while profit has fallen by 7%. Its ROE and ROCE have averaged 12% and 17% over the same period.
The company has an outstanding order book of ₹2,220 crore to be executed over the next 15-18 months, which provides healthy revenue visibility.
Demand for its products from the defence sector remains strong and it is one of the primary suppliers for the defence ministry’s most crucial projects such as its Mk-II project to develop Tejas fighter jets, and IRSO’s space programme.
It’s expected to leverage the strong market position as a key manufacturer of super alloys and continue to benefit from the government’s focus on strategic sectors such as defence and space.
#3 Astra Microwave
The company is a designer and manufacturer of high-performance radio frequency (RF) and microwave super components, modules, sub-systems, and complete systems.
Focused primarily on the defence sector, it has a significant and growing presence in the space sector, having been involved in India's space programme for about 25 years.
It supplies critical RF and microwave components and subsystems for satellites and launch vehicles, and has contributed to major missions, including ISRO's CMS-03 communication satellite, by providing advanced subsystems.
The company is now enhancing its role in the emerging commercial space market, which is expected to grow substantially. To this end, it incorporated a wholly owned subsidiary, Astra Space Technologies (ASTPL), to design, develop, manufacture, and integrate satellite equipment, including assembling small satellites. The company has set up satellite assembly clean rooms at its Bengaluru facility and is pursuing opportunities to build and launch small satellites.
It plans to generate revenue from data monetisation through satellite constellations, positioning itself to capitalize on global space technology trends that focus on areas such as satellite communication, earth observation, and national security.
Astra Microwave’s sales and net profit have clocked a CAGR of 18% and 28%, respectively over the past five years. Its ROE and ROCE have averaged 10% and 17%, respectively over this period.
It has a healthy order book of ₹2,230 crore, which provides strong revenue visibility across defence, radar electronics, space, and meteorological segments.
The company continues to strengthen its position in high-value defence electronics and electronic warfare systems. It is participating in many indigenous defence programmes, and expanding opportunities in radar systems, missile electronics, telemetry, and advanced space applications.
It's increasingly focused on complex systems and complete solutions, which could support long-term margin expansion and stronger growth visibility.
The company is also seeing export opportunities improve, particularly with global defence spending rising and collaboration with international defence players increasing.
Conclusion
Here's the thing about investing in space: it's a long game. These companies aren't promising overnight riches. They're building infrastructure for an industry that's still strapping on its boots.
But that's exactly what makes this moment interesting. India's space economy is projected to grow several times over in the coming decade, and the companies laying the groundwork today could be the heavyweights of tomorrow.
That said, spacetech is capital-heavy, timelines are long, and a single failed mission can rattle sentiment. Do your homework, weigh the risks, and never invest more than you're willing to lose.
Investors should evaluate a company's fundamentals, corporate governance, and stock valuations before making an investment decision.
Happy investing!
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com