Defence Company-Apollo Micro Secures Industrial License for Manufacturing of HMX and TNT

IDL Explosives Limited, a step-down subsidiary of Apollo Micro Systems Limited (AMS), has achieved a significant regulatory milestone by securing an Industrial License under the IDR Act, 1951, for the production of high-grade explosives. Located in San Sunaparbat, Rourkela, the facility is now authorised to manufacture 50 MTPA of Cyclotetramethylenetetranitramine (HMX) and 500 MTPA of Trinitrotoluene (TNT). This license remains valid for 15 years, positioning the company to strengthen its manufacturing footprint in the Defence and industrial sectors by providing critical energetic materials from its Odisha-based operations.

MANAGEMENT QUOTES Commenting on the significance of the Defence explosive license:

Mr Karunakar Reddy, Managing Director of Apollo Micro Systems Limited, stated: “I am pleased to announce that IDL Explosives Limited, our step-down subsidiary, has been granted the Industrial License to manufacture HMX and Trinitrotoluene (TNT). This represents a significant strategic milestone for Apollo Micro Systems, allowing us to meet the needs of both industrial and defence explosives. This license is more than a regulatory approval it is a validation of our technical expertise, operational excellence, and adherence to the highest safety and quality standards. It strengthens our ability to meet captive requirements for high-energy defence explosives while creating opportunities to serve growing demand in both domestic and international markets for industrial and defence explosives. This milestone marks a timely and strategic entry into specialised defence explosives, positioning the IDL Explosives as a domestic supplier of high-energy materials, supporting India’s Atmanirbhar Bharat initiative, and creating potential opportunities in the export market.”

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.

The company is part of the BSE Small-Cap Index, with a market cap of over Rs 7,700 crore. The stock gave multibagger returns of 740 per cent in just 3 years and a whopping 1,700 per cent in 5 years.

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