Defence company enters into a strategic tri-party alliance with IIT-Chennai and the Indian Navy

Apollo Micro Systems Limited (AMS) has entered into a strategic tri-party Memorandum of Understanding (MoU) with IIT-Chennai and the Indian Navy, represented by the Directorate General of Naval Armament Inspection (DGNAI), to accelerate indigenous Defence technology development. This unique domestic agreement was officially exchanged on November 25, 2025, during the prestigious Swavalamban 2025 event in New Delhi, in the presence of the Defence Minister, Shri Rajnath Singh. The collaboration is focused squarely on addressing and solving present and future operational challenges of the Armed Forces through collaborative Research and Development (R&D), directly supporting the Government’s 'Aatmanirbhar Bharat' (Self-Reliant India) initiative in the defence sector.

This alliance is designed to leverage the distinct core strengths of the three pillars within India's defence ecosystem. IIT-Chennai will serve as the Research Anchor, driving the initial conceptual design and developing cutting-edge, future-proof technologies and Intellectual Property (IP). AMS steps in as the Technology Development and Manufacturing Partner, responsible for converting this laboratory-scale research into robust, battlefield-ready products utilising its extensive manufacturing expertise. Finally, the DGNAI of the Indian Navy provides crucial domain expertise and operational insights, assisting in the stringent testing and inspection of the developed products to ensure they meet all military specifications for integration into the Naval fleet and other defence platforms.

The rationale behind this partnership is to catalyse innovation in high-technology areas critical to modern warfare, such as advanced Electronic Warfare systems, precision guidance and control systems, and high-energy armament solutions. While initially focused on the Indian Navy's requirements, the partnership with IIT-Chennai is anticipated to extend to other technologically advanced products for the Indian Army, Indian Air Force, Space, and various other applications. The successful execution of projects under this MoU is expected to significantly contribute to the Ministry of Defence’s goal of achieving self-Reliance in critical defence technologies, thereby bolstering India's position as a global hub for defence manufacturing.

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 1,000 per cent in just 3 years and a whopping 2,260 per cent in 5 years.

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