Defence Stock Apollo Micro Systems Hits Record High On Rs 113.81 Cr Export Order; Stock Surges 15%

Apollo Micro Systems Ltd's shares soared more than 15 per cent in intraday trading on Wednesday as they hit a fresh 52-week high of Rs 175 on the BSE after the company announced a substantial export order. The stock started at Rs 157.15, marginally higher than its previous close of Rs 155.80, and continued to surge noticeably during the session. Riding that wave, this BSE Smallcap defense stock had surged more than 24% in the past two trading sessions and 46% in May alone, owing to growing investor interest in the defence segment.

The steep increase in share price was reported after the company announced a Rs 113.81 crore export order for an Avionic System. In a regulatory filing, Apollo Micro Systems stated, "The company, in the ordinary course of business, had received an export order worth USD 13,366,505 (roughly INR 113.81 crore) for an Avionic System's development. This order strengthens the defence electronics market position of Apollo Micro Systems." The order is expected to meaningfully impact several quarters of their revenue in the future.

Apollo achieved exceptional results in FY25, which marked the company's best fiscal year ever, and this invariably led to impressive stock performance. Revenue grew to Rs 562.07 crore, revealing a year-on-year increase of 51.24%, as shared by Managing Director Mr. Baddam Karunakar Reddy. With a net profit increase of 81.18% and EBITDA of Rs 132 crore, which signifies a 54% jump while sustaining a healthy margin of 23.5%, the company has cemented its leadership position. Mr. Reddy commented that this performance can be attributed to a robust order pipeline, the successful execution of strategic defence contracts, and the seamless scaling of high-value products into full production. Along with other earnings, he stressed the significance of annual data due to the bespoke nature of the company's solutions.

Apollo Micro Systems has also revealed, as part of its transformational strategy, the acquisition of IDL Explosives Ltd in a bid to fully integrate and elevate the company to a Tier-1 defence OEM. This acquisition broadens the company's manufacturing capabilities and augments the product portfolio, reinforcing the company's position within the Indian defence sector.

In the next two years, we expect strong revenue growth of around 45-50% attributed to its healthy order book and increasing demand for its defence technologies. Operating margins are expected to improve during H1FY26, but capital expenditures will likely constrain margin growth in the second half of FY26 and throughout FY27.

Mr. Reddy pointed out that the recent foreign policy events have required action for the indigenous defence systems which the company has successfully been able to test and showcase. Apollo remains focused on the development of innovation in the field of self-reliant nationalist defence technologies.

Founded in 1985, Apollo Micro Systems designs and delivers technologically sophisticated electronics and electromechanical systems for the Aerospace, Defence and Space industries. The firm has solidified itself as a key player in India's defence technology by complex R&D projects, including torpedo-homing systems and underwater mines.