Apollo Micro Systems touches 52-week high on new DRDO and defence PSU orders

Apollo Micro Systems shares surged on Friday after the company announced new order wins from defence agencies. The stock rallied to touch a 52-week high of ₹240.60 on the BSE. On the NSE, it climbed 15% intraday to ₹236.40, while trading 15.41% higher at ₹236.86 around 12:36 PM.

In an exchange filing on August 21, the company said, “We are pleased to inform you that the company has been declared the lowest bidder for orders worth ₹25.12 crore from DRDO and defence PSUs.”

Defence-related stocks have been witnessing strong traction amid increased government spending, new contracts, and a focus on indigenous manufacturing. The Indian Air Force’s plans to acquire 97 LCA Tejas Mark 1A jets have further strengthened investor sentiment toward the sector.

Apollo Micro Systems shares have now gained for six straight sessions, rising 27% during this period. The stock has jumped 35% in August so far, recovering from a 10% fall last month. Year-to-date, it has delivered a 91% return.

The stock touched its 52-week low of ₹87.99 in October last year. Since then, it has surged nearly 170% to reach its latest peak.

The company holds an unexecuted order book of ₹735 crore. In addition, the ₹149.05 crore capex at Electronic City is likely to be completed in the current year (Q2FY26), which, as per analysts, is expected to enhance the scale of operations over the medium term.

In the April–June 2025 quarter (Q1FY26), Apollo Micro Systems posted a strong 46% year-on-year (Y-o-Y) revenue growth, rising to ₹133.6 crore from ₹91.2 crore in Q1FY25.

This performance was largely supported by smooth execution of its solid order book and the scaling up of multiple high-value systems into full-fledged production.

On the profitability side, the company’s EBITDA (excluding other income) grew 83% YoY to ₹40.94 crore. EBITDA margin expanded by 600 basis points to a record 31% from 25% in Q1FY25, highlighting the benefits of operating leverage and efficient execution, the company stated.

Apollo Micro Systems, in a business update, stated that it has secured an export order worth approximately ₹113.81 crore for the development of an avionic system.

The company mentioned that the project involves creating an advanced avionics system designed for both civil and military aircraft applications. Owing to the sensitive nature of the project, detailed technical and program-related information remains confidential under a Non-Disclosure Agreement (NDA) with the customer.

Separately, the company informed that its board has recommended a final dividend of 25% (₹0.25 per equity share of ₹1 each, fully paid up) for FY 2024-25, subject to shareholders’ approval at the AGM.

Additionally, Apollo Micro Systems announced the acquisition of IDL Explosives Ltd., highlighting that this move will not only strengthen its manufacturing capacity but also expand its solutions portfolio within critical segments of India’s defence supply chain.