56% rally in 1 month, over 2,000% returns in 5 years; check why this defence stock was in the spotlight today

Apollo Micro Systems offers solutions based on state-of-the-art technologies for Aerospace, Defence & Space as primary customers and also caters solutions for Railways, Automotive and Home Land Security markets.

The stock has been a terrific wealth creator for its long-term investors. Data show that in the past one month, the scrip has jumped nearly 56%, 85% in the past six months, around 64% in the past 12 months, and a whopping 2,023% in the past five years.

Today, the stock was trading 15% higher at ₹179.16 on the NSE at the time of filing this article. At close, the stock stood at ₹179, up 14.88%.

The sharp surge in the stock came after the company, in its business update, said that in the ordinary course of its business, it has received an export order valued at around ₹113.81 crore for the development of an avionic system.

Apollo Micro Systems said that the project pertains to the development of an advanced avionics system intended for use in civil and military aircraft applications. However, due to the sensitive nature of the engagement, specific technical and program details are bound by a Non-Disclosure Agreement (NDA) with the customer.

In a separate announcement, the company said its board has considered the recommendation of a final dividend at the rate of 25% (₹0.25 paise) per equity share of ₹1 each fully paid up of the company for the financial year 2024-25, subject to the approval of members at the AGM.

In the Q4 Y25 and FY24-25 earnings release issued on May 23, 2025, Baddam Karunakar Reddy, Managing Director, Apollo Micro Systems Limited, said, “FY25 has been a landmark year for Apollo Micro Systems Ltd — marking our strongest performance to date."

Reddy added, "We achieved a significant milestone with revenue reaching ₹562.07 crore, representing a robust 51.24% year-on-year growth. EBITDA stood at ₹132 crore, reflecting a 54% increase YoY, with a healthy EBITDA margin of 23.50%. Net profit surged by 81.18%, in line with our annual guidance. What we commit, we deliver."

The company also announced the acquisition of IDL Explosives Ltd. Apollo Micro said this acquisition not only enhances its manufacturing capabilities but also broadens its solutions portfolio across critical areas of India’s defence supply chain.

Apollo Micro Systems FY26, FY27 outlook

The company said it expects revenue to grow at a compound annual growth rate (CAGR) of 45% to 50% over the next two years — driven solely by the core business, excluding any contribution from the recent acquisition. This growth is underpinned by a healthy order book and multiple products entering the production phase.

Operating margins are projected to improve in the first half of FY26 due to favourable operating leverage and product mix. However, ongoing and planned capital investments are expected to moderate margin expansion in the latter half of FY26 and into FY27.

The company also added that recent geopolitical developments — particularly the India–Pakistan conflict — have further accelerated demand for indigenous defence solutions.

"Several of our systems were successfully tested and demonstrated during this period, generating significant interest and engagement across the defence value chain," Apollo Micro Systems said.