Synopsis: India is accelerating the development of its ₹27,000-crore Space-Based Surveillance (SBS)-III programme, a strategic initiative aimed at significantly enhancing border monitoring and maritime surveillance capabilities. With 52 surveillance satellites planned and 31 expected to be built by private-sector companies, the project is bringing defence-space stocks into focus.
The upcoming satellite constellation is expected to strengthen India's Intelligence, Surveillance and Reconnaissance (ISR) capabilities across sensitive border regions and the Indian Ocean. Against this backdrop, three companies already embedded within India's defence and space ecosystem could emerge as key beneficiaries: Astra Microwave Products, Data Patterns, and Bharat Electronics (BEL).
India’s ₹27,000-Crore Space Surveillance Push
India's defence-space infrastructure has evolved rapidly over the past decade through programmes such as RISAT, Cartosat and GSAT satellites. The SBS-III programme represents the next phase of this evolution.
According to reports, the government plans to deploy a network of 52 surveillance satellites by 2029, with the first launches expected in 2026. The constellation is designed to provide real-time monitoring capabilities across India's borders and the Indian Ocean Region.
Importantly, private companies are expected to manufacture 31 of the 52 satellites, creating a sizeable opportunity for domestic defence and aerospace players.
Astra Microwave Products: Deep ISRO Integration
Astra Microwave Products has been associated with India's space programme for over 25 years and remains one of the country's most established suppliers of space electronics.
The company supplies specialised RF and microwave components to ISRO and the Space Applications Centre (SAC), contributing to both satellite and launch vehicle programmes.
One of Astra's most notable contributions came through the RISAT programme, where the company supplied nearly 90% of the electronics used in the satellite platform. To date, Astra has participated in more than 25 satellite missions.
The company is also moving higher up the value chain.
Management has initiated a corporate restructuring exercise that will demerge its Space, Meteorology and Hydrology businesses into a separate entity. The objective is to create a dedicated space-focused business while unlocking shareholder value.
Beyond supplying components, Astra aims to build its own satellite platform within the next two to three years and has already begun establishing integration infrastructure in Bengaluru.
As of March 2026, Astra's standalone order book stood at approximately ₹2,141 crore. Management expects new order inflows of around ₹1,600 crore during FY27, with space and meteorology expected to contribute roughly one-fourth of total bookings.
Data Patterns: Building India's Strategic Space Surveillance Systems
Data Patterns has emerged as one of India's most advanced indigenous defence electronics and surveillance system developers.
The company has built sophisticated radar systems designed specifically for space surveillance applications, including the Alpha Radar and Bravo Radar platforms.
The Alpha Radar is an indigenous S-Band Space Surveillance and Tracking Radar capable of monitoring objects in deep space. Meanwhile, the Bravo Radar, a UHF Bi-Static Radar system, is designed to detect targets thousands of kilometres away.
Unlike component suppliers, Data Patterns delivers complete turnkey solutions, handling not only radar electronics but also associated infrastructure and deployment requirements.
Management has highlighted strategic surveillance opportunities as a major future growth driver and expects these programmes to contribute significantly to revenue over the coming years.
The company also has a long-standing relationship with ISRO and possesses capabilities across satellite subsystems, nano-satellites and ground stations. Notably, it successfully developed a nano satellite that was deployed into orbit in 2017.
As of May 2026, Data Patterns reported its largest-ever order book pipeline of approximately ₹2,062 crore, providing strong revenue visibility.
Bharat Electronics: Expanding Into Satellite Payloads And LEO Constellations
Bharat Electronics (BEL), one of India's largest defence electronics companies, is steadily increasing its presence in the space segment.
The company is an approved ISRO partner for Assembly, Integration and Testing (AIT) of satellites and has already completed integration work on multiple RISAT satellites.
BEL has also collaborated with ISRO on indigenous navigation receivers for India's satellite navigation ecosystem.
Looking ahead, the company is focusing on low-earth orbit (LEO) satellite constellations, space-based payloads and defence-space infrastructure.
Management has indicated plans to establish dedicated manufacturing facilities for satellite payloads and intends to partner with private players through joint ventures to expand its space capabilities.
The opening of India's space sector to private participation is expected to support BEL's diversification strategy, with space electronics emerging as a key growth area.
BEL's order book stood at approximately ₹73,882 crore as of March 2026, while management has guided for fresh order inflows exceeding ₹55,000 crore in FY27.
Valuation Snapshot
While all three companies are strategically positioned within India's defence-space ecosystem, valuation profiles differ considerably.
Data Patterns and Astra Microwave currently trade at premium valuations relative to both industry averages and their historical multiples, reflecting investor expectations around future growth opportunities.
BEL, on the other hand, continues to trade at a relatively lower valuation despite superior return ratios and significantly larger order-book visibility.
Conclusion
India's ₹27,000-crore SBS-III programme could become one of the country's most significant defence-space initiatives over the next decade. With private players expected to build the majority of the planned surveillance satellites, opportunities extend beyond satellite manufacturing into radar systems, payload development, electronics, integration and surveillance infrastructure.
Astra Microwave, Data Patterns and Bharat Electronics already possess strong technological capabilities and established relationships with India's defence and space agencies. While actual contract awards and execution will ultimately determine the extent of their participation, these companies remain among the key stocks to watch as India's next-generation space shield takes shape.
Disclaimer: This article is for informational and educational purposes only and should not be construed as investment advice. The companies discussed are potential beneficiaries based on their existing capabilities and market positioning. Actual project awards, execution timelines and financial outcomes may vary. Investors should conduct independent research and consult a SEBI-registered financial advisor before making investment decisions.
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