FIIs bought 2,10,22,112 shares & DIIs bought 42,40,713 shares: Defence company reports stellar results for Q1FY26; Revenue surges 46 per cent & Net profit rockets 110 per cent

On Tuesday, shares of multibagger defence company gained 0.22 per cent to an intraday high of Rs 181.80 per share from its previous closing of Rs 181.40 per share. The stock’s 52-week high is Rs 221.40 per share and its 52-week low is Rs 88.10 per share.

The buzzing stock name is Apollo Micro Systems Ltd (AMS)

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.

Mr. Baddam Karunakar Reddy, Managing Director, Apollo Micro Systems Limited, said:

“I’m pleased to share that Apollo Micro Systems has commenced FY26 with exceptional momentum, delivering our strongest-ever Q1 performance — a clear reflection of our strategic focus, operational excellence, and the unwavering dedication of our team. In Q1FY26, we achieved a remarkable 46 per cent year-on-year revenue growth, reaching Rs 133.58 crore, up from Rs 91.20 crore in the same quarter last year. This growth has been driven primarily by the robust execution of our order book and the seamless transition of several high-value systems into production.

Our EBITDA (excluding Other Income) grew by 83 per cent to Rs 40.94 crore, compared to Rs 22.37 crore in Q1FY25. More notably, our EBITDA margin expanded by 600 basis points, standing at 31 per cent in Q1FY26, compared to 25 per cent in Q1FY25 - a clear indication of strong operating leverage and improved cost efficiency. This momentum also translated into the bottom line. Our Profit After Tax (PAT) more than doubled, growing 110 per cent year-on-year to Rs 17.68 crore, up from Rs 8.43 crore in Q1FY25. PAT margin also expanded by 400 basis points year-on-year and quarter-on-quarter, reaching 13 per cent in Q1FY26, as against 9 per cent in Q1FY25.

In a business defined by tailored, complex, and mission-critical solutions, sequential (quarter-on-quarter) comparisons often fail to reflect the true picture. Product mix and delivery cycles vary significantly based on client-specific requirements. Accordingly, annual performance remains the most meaningful benchmark for evaluating our financial and operational progress. Our sustained investments in indigenous technologies, coupled with our alignment to national defence priorities such as Atmanirbhar Bharat, continue to strengthen our position as a trusted partner in India’s evolving defence ecosystem.

We are also pleased to announce a significant strategic milestone — the acquisition of IDL Explosives Ltd. This marks a new chapter for Apollo Micro Systems as we move closer to becoming a fully integrated Tier-1 defence OEM. The acquisition not only enhances our manufacturing capabilities but also broadens our solutions portfolio across critical areas of India’s defence supply chain. It is a proud moment and a feather in our cap that positions us for greater impact and scale

Looking ahead, we expect 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. This growth is underpinned by a healthy order book and multiple products entering the production phase. Operating margins are projected to improve in the first half of FY26, driven by favourable operating leverage and a more favourable product mix. However, ongoing and planned capital investments are expected to moderate margin expansion in the latter half of FY26 and into FY27.

Recent geopolitical developments — particularly the India–Pakistan conflict — have further accelerated demand for indigenous defence solutions. Several of our systems were successfully tested and demonstrated during this period, generating significant interest and engagement across the defence value chain. As we move forward, our focus remains steadfast: to innovate with purpose, deliver with precision, and deepen our strategic partnerships. At Apollo Micro Systems, we are not only setting new performance benchmarks — we are actively shaping the future of a self-reliant, secure, and technologically advanced defence infrastructure for our nation.”

The company falls under the BSE Small-cap Index with a market cap of over Rs 5,300 crore. In June 2025, FIIs bought 2,10,22,112 shares & DIIs bought 42,40,713 shares and increased their stake to 7.16 per cent and 1.61 per cent respectively, compared to March 2025. The stock gave multibagger returns of 1,200 per cent in just 3 years and a whopping 1,500 per cent in 5 years.

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