Synopsis:
Apollo Micro Systems Ltd is in the spotlight after being declared the lowest bidder for new orders from DRDO and Defence PSUs, signaling strong growth in the defence technology sector.

The shares of a defence electronics manufacturer company is in the spotlight today after being declared the lowest bidder for new orders from DRDO and Defence PSUs, highlighting its growing presence in the strategic defence sector.

With the market capitalization of Rs. 6,837.42 crore, the shares of Apollo Micro Systems Ltd were trading at Rs. 204.90, up by 1.02 percent from its previous day’s close price of Rs. 202.83 per equity share. The stock has reached an intraday high of Rs. 211, up by 4 percent from previous close price. 

What’s the news?

Apollo Micro Systems Ltd has been declared as the Lowest Bidder for orders totaling Rs. 25.12 crores from DRDO and Defence PSUs, reflecting its strong positioning and growing presence in the defence technology sector. This recognition highlights the company’s capabilities and potential for further strategic defence contracts.

Also Read: IT stock to buy now for an upside of 23%; Recommended by Nuvama

About the Company

Apollo Micro Systems Limited (AMS), founded in 1985 and headquartered in Hyderabad, is a leading technology provider to the defence and aerospace sectors. The company focuses on electronic, electromechanical, and engineering design, as well as manufacturing advanced systems for missile, satellite, naval, avionics, and homeland security applications. 

With over 40 years of experience, AMS creates critical “brain, eyes, and nerves” systems for missiles and defense platforms, ensuring high reliability under harsh conditions. The company provides comprehensive services such as R&D, design, development, testing, and mass manufacturing, as well as integrated solutions in secure communications, underwater electronic warfare, air defense, and custom COTS products tailored to defense and space needs.

Financial Outlook

Apollo Micro Systems Ltd posted revenue of Rs. 133.58 crore in Q1 FY2026, up 46.47 percent YoY from Rs. 91.2 crore but down 17.43 percent YoY from Rs. 161.77 crore. Net profit surged 26.65 percent QoQ from Rs. 13.96 crore to Rs. 17.68 crore, and grew 110 percent YoY from Rs. 8.43 crore. 

The company’s EBITDA stood at Rs. 40.94 crore, rising 13.75 percent QoQ from Rs. 35.99 crore and 83 percent YoY from Rs. 22.37 crore. EBITDA margin improved to 31 percent in Q1 FY2026 from 25 percent a year ago.

At the moment, the company’s P/E ratio is 101x higher as compared to its industry P/E 66.7x, and its ROE and ROCE are 10.2 percent and 14.5 percent, respectively, showing companies financial performance, whereas the D/E ratio of the company stands at 0.49.

Written by Akshay Sanghavi

Disclaimer

The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.