Apollo Micro Systems Ltd. (AMS), a well-known name in India’s defense and aerospace sector, witnessed a sharp rise in its share price on Friday. The stock jumped as much as 9%, reaching ₹222.7 during the trading session. The sudden rally came after the company announced that it had been declared the lowest bidder for fresh orders from the Defence Research and Development Organisation (DRDO) and other defense public sector undertakings (PSUs).
The total value of these new orders stands at ₹25.12 crore, adding more strength to AMS’s growing business pipeline. Investors reacted positively, seeing the win as a sign of the company’s increasing relevance in India’s defense manufacturing ecosystem.
Apollo Micro Systems Impressive Financial Performance in Q1 FY26
The order win comes on the back of solid quarterly results. For the first quarter of FY26, which ended in June 2025, Apollo Micro Systems reported a net profit of ₹17.6 crore. This is more than double the ₹8.4 crore recorded in the same quarter last year.
Net sales for the period also rose sharply by 46%, reaching ₹1,336 million. The company credited this performance to better execution of its order book and the successful production transition of new systems. Market experts note that the combination of rising sales and improved margins highlights AMS’s ability to scale up operations effectively in a competitive market.
Over the last one year, the stock has delivered stellar returns, gaining more than 100%. This performance looks even stronger when compared with the BSE CAPITAL GOODS index, which has declined in the same period. Such outperformance underlines investors’ growing faith in the company’s long-term growth story.
Strategic Expansion Through Acquisition
Beyond its financial results and order wins, Apollo Micro Systems has also been working on expanding its business strategically. In May 2025, the company completed the acquisition of a 100% stake in IDL Explosives, a move designed to broaden its product portfolio and revenue streams.
IDL Explosives, which specializes in manufacturing explosives for mining and infrastructure projects, reported revenue of ₹623 crore in FY24. The acquisition strengthens AMS’s position not only in defense-related products but also in the civilian industrial sector. By integrating IDL’s operations, the company is expected to diversify its earnings and reduce dependence on a single business line.
Industry analysts believe this acquisition could open new opportunities for AMS, especially at a time when infrastructure and mining activities in India are gaining momentum. The move shows that the company is not only focusing on defense contracts but also exploring growth in related industries.
Key Metrics and Investor Confidence
While the company’s growth prospects look strong, certain financial indicators highlight the need for cautious optimism. Apollo Micro Systems currently has a high Price-to-Earnings (P/E) ratio of over 100, which suggests that the stock is trading at a premium compared to many peers in the sector. Additionally, promoters have slightly reduced their stake in the last quarter.
On the other hand, institutional investors are showing rising interest. Both mutual funds and foreign institutional investors have increased their holdings, signaling confidence in the company’s ability to maintain its growth momentum.
Overall, the combination of robust earnings, new order wins, and a successful acquisition paints a positive picture of Apollo Micro Systems’ future. With India’s defense and aerospace sector receiving consistent government support, AMS is well-positioned to benefit from the favorable environment.
Looking ahead, much will depend on how efficiently the company executes its growing order book and manages the integration of IDL Explosives. For investors, the recent developments highlight both the opportunities and risks involved in the stock. But for now, Apollo Micro Systems seems to be on a strong growth trajectory, backed by business expansion, rising revenues, and increasing investor confidence.
F.A.Q.
– Why did Apollo Micro Systems’ share price rise recently?
The share price surged by about 9% after the company announced it was the lowest bidder for new defense orders worth ₹25.12 crore from DRDO and other PSUs.
– How did Apollo Micro Systems perform in Q1 FY26?
In Q1 FY26, the company posted a net profit of ₹17.6 crore, more than double the ₹8.4 crore from last year, and its net sales rose 46% to ₹1,336 million.
– What is the significance of Apollo Micro Systems acquiring IDL Explosives?
The acquisition of IDL Explosives, which had ₹623 crore in revenue in FY24, helps AMS diversify its business into the mining and infrastructure sector while strengthening its defense offerings.
– How has the company’s stock performed over the past year?
Apollo Micro Systems’ stock has gained more than 100% in the last year, significantly outperforming the BSE CAPITAL GOODS index, which saw a decline.
– What are the risks investors should be aware of?
The stock trades at a high Price-to-Earnings ratio of over 100, and promoters have slightly reduced their stake. However, mutual funds and foreign investors have increased their holdings, showing confidence in future growth.
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