Synopsis:
Apollo Micro Systems Limited, a Defence stock, reports 46% YoY revenue growth and a 110% YoY net profit surge in Q1 FY26 results
This small-cap defence stock, engaged in designing, developing, and assembling advanced electronic systems, primarily engaged in serving the defence, aerospace, and space sectors, jumped 7 percent after the company reported June quarterly results with a 110 percent YoY increase in net profit.
With a market capitalization of Rs. 5,507.62 crores, the share of Apollo Micro Systems Limited has reached an intraday high of Rs. 185 per equity share, rising nearly 7.37 percent from its previous day’s close price of Rs. 172.30. Since then, the stock has retreated and is currently trading at Rs. 179.70 per equity share.
Q1 FY26 Result Walkthrough
Coming into the quarterly results of Apollo Micro Systems Limited, the company’s consolidated revenue from operations increased by 46.47 percent YOY, from Rs. 91.20 crore in Q1 FY25 to Rs. 133.58 crore in Q1 FY26, and decreased by 17.43 percent QoQ from Rs. 161.77crore in Q4 FY25.
In Q1 FY26, Apollo Micro Systems Limited’s consolidated net profit increased by 109.98 percent YOY, reaching Rs. 17.68 crore compared to Rs. 8.42 crore during the same period last year. As compared to Q4 FY25, the net profit has increased by 26.65 percent, from Rs. 13.96 crore. The basic earnings per share increased by 93.10 percent and stood at Rs. 0.56 as against Rs. 0.29 recorded in the same quarter in the previous year, 2025.
Financial Highlights: Apollo Micro Systems Limited’s revenue has increased from Rs. 372 crore in FY24 to Rs. 562 crore in FY25, which is a growth of 51.08 percent. The net profit has also grown by 78.13 percent, from Rs. 32 crore in FY24 to Rs. 57 crore in FY25. Apollo Micro Systems Limited’s revenue and net profit have grown at a CAGR of 32.24 percent and 56.05 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE stand at 14.5 percent and 10.2 percent, respectively. Apollo Micro Systems Limited has an earnings per share (EPS) of Rs. 1.87, and its debt-to-equity ratio is 0.49x.
Apollo Micro Systems Limited was established in 1997 and is an Indian company focused on designing, developing, assembling, and testing advanced electronic and electromechanical systems. It mainly serves the aerospace, defence, and space industries, while also catering to railways, automotive, and homeland security sectors.
The company has a strong and diverse client base across the government and private sectors. Major clients include the Ministry of Defence, BHEL, Bharat Dynamics, Tata, Adani, Indian Air Force, HAL, BEL, Indian Oil, and AMD, showing its wide industry presence.
Apollo Micro Systems has shared a strong growth outlook for the coming years. As of the end of FY 2024-25, the company’s order book stands at Rs. 615 crore, up 11.8 percent from Rs. 550 crore in the December quarter. The company expects this order book to triple, a 200 percent increase, by March 2026, largely driven by expected orders like the QRSAM missile system from Bharat Dynamics over the next two quarters.
To support this growth, the company has planned a total capital expenditure of Rs. 250 crore, which includes Rs. 150 crore for Phase 1 and Rs. 100 crore for Phase 2. Construction for Phase 2 of Unit 3 is expected to start in the fourth quarter of FY26.
The company is also working to improve efficiency. From FY27 onwards, the company expects to reduce its working capital cycle by approximately 100-120 days. Revenue is projected to grow at a strong CAGR of 45–50 percent over the next two years, supported by a healthy pipeline and more products moving into production.
The company’s margins are likely to improve in the first half of FY26 due to better operating leverage and product mix. However, ongoing investments may slow margin growth in the second half of FY26 and FY27.
Written By – Nikhil Naik
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