Soars on Strong Defence Order Book and Record Quarterly Performance
Hyderabad (Telangana) [India], December 31: Shares of Apollo Micro Systems Limited surged over 4% on Wednesday, closing at Rs 270.90, as the defence technology firm announced a series of significant contract wins and reported exceptional quarterly results that highlight its accelerating growth trajectory within India’s strategic sectors. The stock, which has delivered multibagger returns 825% over the last three years, continues to demonstrate robust momentum, trading 163% above its 52-week low.
The company's step-down subsidiary, IDL Explosives Limited, has secured a major Running Contract for the supply of bulk explosives to subsidiaries of Coal India Limited, valued at approximately Rs 4,193.96 million. This was complemented by an export order for cartridge explosives worth Rs 15 million, bringing the cumulative new order value to over Rs 4,208.96 million. This follows a recent order worth Rs 1,002.47 million from a private company for the supply of Unmanned Aerial Systems to the Ministry of Defence, to be executed within four months, underscoring Apollo Micro Systems’ expanding role in critical defence supply chains.
This robust order inflow is being seamlessly translated into financial performance. The company announced its Q2FY26 results, posting a historic high quarterly revenue of Rs 225.26 crore, a remarkable 40% year-on-year increase from Rs 160.71 crore in Q2FY25. Operational excellence was evident as EBITDA surged 80% to Rs 59.19 crore, with margins expanding by 600 basis points to26%. This operational leverage flowed strongly to the bottom line, with Profit After Tax (PAT) skyrocketing 91% YoY to Rs 30.03 crore, achieving a PAT margin of 13.3%.
These results underscore the successful execution of Apollo Micro Systems’ strategic focus on indigenous defence technology. The 40-year-old pioneer, with a market capitalisation exceeding Rs 8,900 crore and part of the BSE Small-cap Index, specialises in designing, developing, and manufacturing advanced electronic and electro-mechanical systems. Its multidisciplinary capabilities and scaled infrastructure position it as a key player aligned with national priorities like Atmanirbhar Bharat, building cutting-edge technologies for India’s strategic defence needs. The company’s sustained growth, evidenced by a staggering 2,000% return for investors over five years, reflects its strengthened position within the rapidly evolving defence ecosystem.
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