Apollo Micro Systems shares jump 6% after strong Q4; management outlines defence expansion roadmap

Apollo Micro Systems shares gained nearly 6% in early trade on Tuesday after the company reported a sharp rise in fourth-quarter earnings and highlighted an aggressive long-term expansion strategy across India’s defence manufacturing ecosystem.

The stock rose 5.98% to ₹329.60 on the NSE after the company posted strong Q4 FY26 numbers. Apollo Micro Systems reported consolidated net profit of ₹37.6 crore for the quarter ended March 2026, up sharply from ₹14 crore in the corresponding quarter last year.

Revenue from operations surged to ₹293 crore from ₹162 crore a year ago, while EBITDA climbed to ₹67 crore compared to ₹35 crore in Q4 FY25. EBITDA margin improved to 22.9% from 21.6% in the year-ago period.

In a shareholder communication, Managing Director Baddam Karunakar Reddy termed FY26 a “breakthrough year” for the company and outlined Apollo Micro Systems’ ambition to become a global defence OEM by FY2036.

The company said it is expanding aggressively across land, air and sea defence platforms, with a growing focus on indigenous manufacturing and advanced defence technologies.

One of the key strategic developments highlighted by management was the 100% acquisition of IDL Explosives, which gives Apollo Micro Systems entry into the military explosives ecosystem, including TNT and HMX-based products.

The company is also strengthening its presence in next-generation defence systems including UAVs, counter-drone technologies, torpedoes, underwater mines, missiles and loitering munitions.

Apollo Micro Systems further stated that it has received multiple DPIIT manufacturing licences for advanced defence systems, positioning it to participate in India’s rapidly expanding domestic defence manufacturing programme.

Management also highlighted emerging export opportunities, noting that the company has already secured its first export order and is targeting global defence markets more aggressively going forward.

The company said its core technology focus areas include RF systems, Artificial Intelligence (AI), and Inertial Navigation Systems (INS), which are increasingly becoming critical in modern warfare and autonomous defence platforms.

Apollo Micro Systems added that it expects to benefit significantly from the Indian government’s “Atmanirbhar Bharat” push in defence manufacturing. The government has set targets of ₹3 lakh crore in defence production and ₹50,000 crore in defence exports by 2029.

In the shareholder letter, management said: “We chose the harder path — to own the platform, the IP, and the destiny that comes with both.”

Disclaimer: This article is for informational purposes only and does not constitute investment advice.