Defence stock-Apollo Micro, surges after the Board allots shares to promoters of the company via preferential allotment

On Monday, shares of the multibagger Defence company surged 3.8 per cent to an all-time high of Rs 273 per share from its previous closing of Rs 263.25 per share. The stock has a 52-week high of Rs 354.65 per share and its 52-week low is Rs 92.50 per share. The stock is up 194 per cent from its 52-week low of Rs 92.50 per share.

The disclosure under Regulation 29(1) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 pertains to the acquisition of Equity Shares of Apollo Micro Systems Limited (AMS), the Target Company (TC), on November 26, 2025. The acquisition was made Through Preferential Allotment by BADDAM CHANAKYA REDDY and BADDAM KANISHKA REDDY, both belonging to the Promoter Group. A total of 84,00,600 equity shares were acquired, representing 2.37 per cent of the TC's total post-acquisition equity/voting capital. Consequently, after this acquisition, the total holding of the acquirers, along with Persons Acting in Concert (PACs) in AMS, is also 84,00,600 shares, maintaining the 2.37 per cent stake. The acquisition resulted in the equity share capital of the TC increasing from 34,22,43,736 to 35,43,91,700 Equity Shares of Re 1 each.

Earlier, AMS, IIT-Chennai and the Indian Navy (DGNAI) have signed a tri-party MoU to accelerate indigenous defence technology development, directly supporting the 'Aatmanirbhar Bharat' initiative. This strategic alliance, exchanged at Swavalamban 2025, leverages IIT-Chennai for research, AMS for technology development and manufacturing, and the DGNAI for operational expertise and testing. The goal is to innovate in critical high-technology areas like Electronic Warfare and precision systems to achieve self-Reliance and meet the operational challenges of the Armed Forces.

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 9,000 crore. The stock gave multibagger returns of 910 per cent in just 3 years and a whopping 2,200 per cent in 5 years.

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