Defence Company-Apollo Micro Systems Ltd Reports Highest Ever Revenue and PAT for the Quarter

Apollo Micro Systems Limited (NSE: APOLLO | BSE: 540879), an electronic, electromechanical and engineering design, manufacturing and supplies company, announced its standalone and consolidated results for the quarter ended September 30, 2025. APOLLO MICRO SYSTEMS LTD has carried the company's exceptional momentum into FY26, delivering the company's strong Q2 performance — a testament to the company's strategic focus, operational excellence and unwavering dedication. Delivering a Historic Highest Quarterly Revenue, Revenue surged to Rs 225.26 crore, a remarkable 40 per cent YoY growth, compared to Rs 160.71 crore in Q2FY25. This growth has been driven primarily by the robust execution of the company's Order Book and the seamless transition of several high-value systems into production.

The strong operational performance was evident across the income statement. EBITDA (excluding Other Income) grew by 80 per cent to Rs 59.19 crore, compared to Rs 32.89 crore in Q2FY25. More notably, the company's EBITDA margin expanded by 600 basis points, to 26 per cent in Q2FY26, from 20 per cent in Q2 FY25—a clear indication of strong operating leverage and improved efficiency. This momentum also translated into the bottom line. The company's Profit After Tax (PAT) grew sharply by 91 per cent year-on-year to Rs 30.03 crore, up from Rs 15.73 crore in Q2FY25. PAT margin expanded by 350 basis points year-on-year, reaching 13.3 per cent in Q2FY26, as against 9.8 per cent in Q2FY25. The company's sustained investments in indigenous technologies, coupled with its alignment with national Defence priorities such as Atmanirbhar Bharat, continue to strengthen its position as a trusted partner in India’s evolving defence ecosystem.

Beyond the strong financial figures, Apollo Micro Systems also announced a significant strategic milestone — the acquisition of IDL Explosives Ltd. This marks a new chapter for Apollo Micro Systems as the company moves closer to becoming a fully integrated Tier-1 defence OEM. The acquisition not only enhances the company's manufacturing capabilities but also broadens the company's solutions portfolio across critical areas of India’s defence supply chain. Looking ahead, the company expects revenue to grow at a CAGR of 45 per cent to 50 per cent over the next two years — driven solely by the core business, excluding any contribution from the recent acquisition. Recent geopolitical developments — particularly the India–Pakistan conflict — have further accelerated demand for indigenous defence solutions. Several of the company's systems were successfully tested and demonstrated during this period, generating significant interest and engagement across the defence value chain. As the company moves forward, the company's focus remains steadfast: to innovate with purpose, deliver with precision and deepen the company's strategic partnerships. The company is not only setting new performance benchmarks, the company is also actively shaping the future of a self-reliant, secure and technologically advanced defence infrastructure for the nation.

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.

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 1,100 per cent in just 3 years and a whopping 2,665 per cent in 5 years.

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