In addition, its step-down subsidiary IDL Explosives Limited secured a separate contract, taking the combined order inflow to Rs 189.56 crore. The order further strengthens the company’s execution pipeline and reinforces its growing presence across India’s defence and industrial sectors.
Shares of Apollo Micro Systems Limited closed at Rs 404.75, down by 0.28 percent from the previous close of Rs 405.9. The stock opened at Rs 405.95, touching an intraday high of Rs 409.9 and a low of Rs 401.8. The company currently commands a market capitalisation of Rs. 14,470 crore.
Apollo Micro Secures Fresh Orders
Apollo Micro Systems informed the exchanges that it has received new business orders worth Rs 1,343.45 million (Rs 134.35 crore) in the normal course of business. The contracts have been awarded by prestigious customers, including the Defence Research and Development Organisation (DRDO), the Indian Navy, Defence Public Sector Undertakings (DPSUs), state government entities, and private industries.
The diversified customer base highlights the company’s strong positioning in India’s defence electronics and mission-critical systems ecosystem while also expanding its presence in industrial and government projects.
Apart from the parent company’s order wins, IDL Explosives Limited, a step-down subsidiary of Apollo Micro Systems, has also secured a contract worth Rs 552.20 million (Rs 55.22 crore). The project is scheduled to be executed over two years, providing additional revenue visibility for the group.
Including the subsidiary’s contract, the total value of fresh business secured by the group stands at approximately Rs 189.56 crore, strengthening its order pipeline for the coming years.
Why These Orders Matter
Although the company has not disclosed the exact nature of the projects, the presence of customers such as DRDO, the Indian Navy, and Defence PSUs indicates continued demand for Apollo Micro Systems’ specialised defence electronics, mission-critical systems, and engineering solutions.
Order inflows remain one of the most important indicators for defence companies, as they provide revenue visibility and demonstrate continued participation in government-led defence procurement programmes. A diversified order mix across defence, government, and private industrial customers also reduces dependence on any single client or project.
Financial highlights
The company delivered a strong Q4 FY26 performance, with revenue rising 80.9 percent YoY to Rs 293 crore from Rs 162 crore in Q4 FY25 and 16.3 percent QoQ from Rs 252 crore in Q3 FY26.
Strong operating leverage drove profitability higher, with operating profit surging 88.9 percent YoY to Rs 68 crore from Rs 36 crore and increasing 36 percent QoQ from Rs 50 crore. Despite the sharp earnings growth, operating margin improved only marginally to 23 percent from 22 percent in Q4 FY25, though it expanded from 20 percent in Q3 FY26, indicating that earnings growth was primarily volume-driven.
Profitability witnessed an even sharper improvement at the bottom line. Profit Before Tax (PBT) jumped 150 percent YoY to Rs 55 crore from Rs 22 crore and rose 71.9 percent QoQ from Rs 32 crore. Net profit climbed 164.3 percent YoY to Rs 37 crore from Rs 14 crore, while increasing 60.9 percent QoQ from Rs 23 crore.
EPS improved to Rs 1.05 compared to Rs 0.46 in Q4 FY25 and Rs 0.72 in Q3 FY26, reflecting strong earnings acceleration. The company continues to maintain a healthy financial profile with cash and cash equivalents of Rs 156 crore, a current ratio of 1.90, and a moderate debt-to-equity ratio of 0.41, providing adequate liquidity to support future growth.
Over the long term, the business has delivered a 5-year sales CAGR of 35 percent, while profit has grown at a 62 percent CAGR over five years and an impressive 76 percent CAGR over the last three years, highlighting sustained improvement in profitability. However, despite robust earnings growth, the stock continues to trade at a premium valuation of 134x earnings, indicating that the market has already priced in strong growth expectations.
Apollo Micro Systems’ latest order wins strengthen its position in India’s defence manufacturing ecosystem as the government’s focus on indigenisation, defence modernisation, and Atmanirbhar Bharat drives procurement opportunities for domestic companies.
The company has not disclosed the parent company’s order execution timelines or product categories, but sustained order inflows from strategic customers like DRDO and the Indian Navy boost earnings visibility and long-term growth. Investors will now closely monitor order execution, future contract wins, margin performance, and order book revenue conversion in the coming quarters.
Apollo Micro Systems Limited is a defence and aerospace electronics company involved in the design, development, assembly and supply of mission-critical electronic systems and solutions. It serves organisations such as DRDO, the Indian Armed Forces, Defence Public Sector Undertakings and other government agencies, in addition to customers in the aerospace, homeland security, transportation and industrial sectors.
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