Defence company enters into a strategic greenfield expansion with the Government of Telangana

Apollo Micro Systems Limited (AMS), a prominent Defence and Aerospace technology company, has announced a major strategic greenfield expansion in Telangana. This initiative, undertaken with its subsidiaries, is designed to significantly boost the company's defence manufacturing leadership in India. The project will involve establishing state-of-the-art facilities for producing and filling Warheads for missiles, Rocket Motors, Small, Medium and Large Calibre Artillery Systems and Ammunition, alongside developing complete Ammunition Systems for Artilleries, Rockets and other armaments. This expansion is one of the most substantial in AMS's history, positioning the company at the forefront of India's rapidly accelerating defence manufacturing ecosystem and enabling it to meet growing domestic and international demand. This strategic move will substantially expand AMS's production capabilities, fortify its supply chain resilience and deepen its portfolio of advanced indigenous defence technologies, thereby strengthening its competitive advantage.

The expansion aligns seamlessly with the Government of India’s Aatmanirbhar Bharat (Self-Reliant India) vision, signifying AMS's commitment to playing a central role in enhancing national security through fully indigenous, high-precision and high-reliability defence systems. To realise this vision, Apollo Micro Systems Limited and its group companies plan to invest approximately Rs 1500 crore. This significant financial commitment underscores the company's long-term dedication to scaling India’s indigenous defence manufacturing capabilities and supporting the nation's strategic security objectives. The overall project creates strong strategic synergies that are expected to accelerate AMS's trajectory toward a leading position within the country's defence manufacturing landscape.

AMS also conducted a Postal Ballot meeting, with the last day for receipt of forms being December 6, 2025. The company sought to pass an Ordinary Resolution to consider and approve giving a loan, guarantee, or security in connection with the loan availed by IDL Explosives Limited, which is a probable step-down subsidiary, in compliance with Section 185 of the Companies Act, 2013. Following the voting process, the resolution was passed.

About the Company

Apollo Micro Systems Limited, a 40-year-old pioneer in defence technology, specialises in the design, development and manufacture of advanced electronic, electro-mechanical and engineering systems. With multi-domain, multidisciplinary capabilities and robust infrastructure, the company is equipped to build cutting-edge defence technologies and produce them at scale for national strategic needs

Apollo Micro Systems Limited (APOLLO) announced its Q2FY26 standalone and consolidated results, showing exceptional momentum. The company delivered a historic high quarterly Revenue, surging 40 per cent YoY to Rs 225.26 crore, up from Rs 160.71 crore in Q2FY25, driven by robust order execution. Operational excellence was clear as EBITDA grew 80 per cent to Rs 59.19 crore, with the margin expanding by 600 basis points to 26 per cent. This translated strongly to the bottom line, with Profit After Tax (PAT) soaring 91 per cent YoY to Rs 30.03 crore and the PAT margin improving to 13.3 per cent. These results underscore the company’s strategic focus and its strengthened position in the defence ecosystem, bolstered by investments in indigenous technologies and alignment with national priorities like Atmanirbhar Bharat.

Beyond the financial achievements, Apollo Micro Systems marked a significant step toward becoming a fully integrated Tier-1 defence OEM with the acquisition of IDL Explosives Ltd. This move expands both manufacturing capabilities and the solutions portfolio across India's defence supply chain. Looking ahead, the company forecasts strong organic growth, expecting core business revenue to grow at a CAGR of 45 per cent to 50 per cent over the next two years. Recent geopolitical events have further accelerated demand for their indigenous defence solutions, with several systems successfully tested. Apollo Micro Systems remains focused on innovation, precision delivery and strategic partnerships, actively shaping India’s self-reliant and technologically advanced defence infrastructure.

The company is part of the BSE Small-Cap Index, with a market cap of over Rs 8,000 crore. The stock gave multibagger returns of 820 per cent in just 3 years and a whopping 1,700 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.