Defence Company-Apollo Micro Systems Ltd concludes the acquisition of IDL Explosives Ltd with GOCL Corporation Ltd

Apollo Micro Systems Limited (AMS), a leading technology provider for the Defence sector, has successfully concluded the acquisition of IDL Explosives Limited through its subsidiary, Apollo Defence Industries Private Limited. This transaction, completed with GOCL Corporation Limited, sees IDL Explosives Limited become a step-down subsidiary of AMS, marking a significant strategic move. The acquisition of IDL Explosives, which has manufacturing facilities including one in Rourkela, is aimed at expanding and strengthening the Apollo Group's presence in the rapidly growing Defence Explosive Sector. This consolidation is strategically important as it aligns with India’s Atmanirbhar initiative in defence manufacturing.

This corporate action substantially strengthens the Apollo Group's capabilities, adding expertise in next-generation high-end Defence grade explosives, propellants, and warhead systems to its existing foundation in Weapon System Electronics and Platforms. The integration of IDL Explosives, which has a deep legacy in India's industrial and mining sectors, is expected to commence from Q3 FY2026. By incorporating these critical capabilities, Apollo Micro Systems Limited, established in 1985, embarks on a new phase of growth, positioning itself as a fully integrated multidisciplinary defence platform provider capable of delivering complete solutions from Weapon System Electronics to the entire Weapon System Complex.

About the Company

Established in 1985, Apollo Micro Systems is at the forefront of creating, constructing and validating crucial electronics and electromechanical solutions for sectors such as Aerospace, defence and space. The company is renowned for its commitment to research and development, resulting in notable projects such as torpedo-homing systems and underwater mines.

Apollo Micro Systems Limited (APOLLO) announced its Q2 FY26 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 Q2 FY25, driven by robust order execution. Operational excellence was clear as EBITDA grew 80% 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 falls under the BSE Small-cap Index with a market cap of over Rs 9,000 crore. The stock gave multibagger returns of 1,040 per cent in just 3 years and a whopping 2,350 per cent in 5 years.

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