Mid-cap private defence stock specializing in electronics solutions is in focus after it jumped up to 7% after announcing its Q3FY25 results, with robust growth in its net profit.
Share Price Movement
With a market capitalization of ₹4,000 Crore, the stock of Apollo Micro Systems Limited opened at ₹138 up 7.42 % from yesterday’s closing price of 128.46. Additionally, the 1 month’s return for the stock is 1.5%, and the past 5-year return is a staggering 1488 %.
Q3FY25 Results
The company reported a 62.45 % YoY increase in revenue from ₹91.34 Crore in Q3FY24 to ₹148.39 Crore in Q3FY25. On a QoQ basis, the company reported a decrease of 7.66% in revenue from ₹160.70 Crore in the previous quarter.
Their Net profit saw an upside of 83.03 % YoY increase from ₹9.96 Crore to ₹18.23 Crore for the same period. On a QoQ basis, the company reported an increase of 15.96 % in net profits from 15.72 Crore in the previous quarter.
EBITDA Margin for Q3FY25 stood at 25.6% compared to 26.3% for Q3FY24, and PAT Margin was at 12.3% compared to 10.9% for the same period.
Operational Highlights
The company has a 165+ research and development team with 60+ programs in dcpp as sub-system partner and 150+ Indigenous programs. The company is a MoU Partner to BDL for Joint development of Naval platforms.
The company has an upcoming 3,50,000 Sq.ft Facility in Hardware Park-II, Hyderabad Unit-III and it already has a 55,000 Sq.ft facility in IDA Mallapur, Hyderabad Unit-I and a 40,000 Sq.ft facility in Adibatla, Hyderabad Unit-II.
Budget 2025: Defence sector
Recently in Budget 2025, the defence sector was allocated 6.81 lakh crore increase of 9.53% from last year. Out of this, ₹1,80,000 Cr i.e. 26.43% of the total allocation will be spent on Capital Outlay on Defence Services.
Even after increasing the budget allocation for the defense sector, the Nifty India Defence index fell up to 5% and major defense stocks declined up to 8 % Because the sector was expecting more allocation for them in the Budget.
Even after a disappointing budget for the defense sector, the outlook looks bright as India has to become Self-Reliant in defense manufacturing, increase private sector participation, and become a defense exporter.
About the Company
Apollo Micro Systems is a key player in India’s defense sector, specializing in advanced electronic and electro-mechanical solutions for military applications. The company provides avionics, electronic warfare systems, missile electronics, secure communication, and weapon control systems for the Indian Armed Forces, DRDO, ISRO, and other defense agencies.
Written By Abhishek Das
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