Apollo Micro Systems signs MoU with Telangana govt for ₹1,500 crore greenfield expansion; stock down

Infrastructure technology solutions provider Apollo Micro Systems Ltd (AMSL) signed an initial agreement with the Telangana government on Tuesday, December 9, to invest ₹1,500 crore in manufacturing defence products.

A memorandum of understanding was signed in Hyderabad on Monday, AMSL said in an exchange filing.

Under this MoU, AMSL, along with its subsidiaries and step-down subsidiaries, will establish a greenfield project in Telangana.

The proposed project, with an estimated investment of approximately ₹1,500 crore, aims to expand the company's manufacturing and explosive filling capabilities.

The project will focus on the manufacturing and filling of warheads, rocket motors, small, medium, and large-calibre artillery systems and ammunition, and the building of complete ammunition systems for artillery, rockets, and other armaments.

It will cater to both domestic and overseas demand requirements.

The Telangana government will extend facilitation to AMS in obtaining all necessary permissions, registrations, approvals, clearances, and applicable fiscal incentives from the concerned state departments, in accordance with existing policies, rules, and regulations as stated in the MoU.

Apollo Micro Systems share performance

Shares of Apollo Micro Systems declined as much as 4.98% to an intra-day low of ₹236.40 apiece on the National Stock Exchange (NSE).

At around 3:14 pm, the stock was trading 3.38% lower at ₹240.40 per equity share.

The scrip has lost nearly 15% in the last week and about 11% over the month. On a year-to-date basis, it has gained over 98%.

Q2 Results

AMSL reported a 98.15% annual increase in its consolidated net profit to ₹31.11 crore in the September quarter of FY26, compared to ₹15.7 crore in the year-ago period.

It witnessed a 40.7% year-on-year (YoY) surge in its revenue from operations to ₹225.26 crore during the quarter under review, as against ₹160.7 crore in the second quarter of FY25.

Hyderabad-based AMSL offers technology-based solutions in sectors like infrastructure, transportation, aerospace and defence, among others.

It has a total market capitalisation of ₹8,053.67 crore, as of December 9, 2025, according to data on the NSE.