Aerospace & Defense Stock Named Lowest Bidder For Rs. 25.12 Cr Defence Contracts; Share Price Gains Over 15%

On Friday, 22nd August, the shares of Apollo Micro Systems Ltd (AMS). were trading at Rs 229.80 on the BSE, up 12.12% from the previous close of Rs 204.95. The stock reached an intraday high of Rs 236.4,5 which represents a gain of 15.37% from the previous close.

Following AMS's announcement that it had been selected as the lowest bidder for new contracts from DRDO and Defence PSUs, totalling Rs. 25.12 crores, the share price of the aerospace & defence firm surged. These orders were obtained by the corporation during regular commercial operations.

Following Apollo Micro Systems Limited's announcement that it has obtained trading authorization for 2,70,42,894 equity shares of face value Rs 1 each, issued on a preferential basis to non-promoters, the stock price of AMS also saw a surge, thanks to positive momentum in the counter. The shares will be listed and available for trading from August 11, 2025. These shares, bearing distinctive numbers from 306489561 to 333532454, will remain under lock-in until February 28, 2026.

In terms of financials, Apollo Micro Systems Limited reported strong growth in its Q1FY26 consolidated financials. Revenue from operations stood at Rs 133.6 crore, down 17% sequentially from Rs 161.8 crore in Q4FY25 but significantly higher by 46% compared to Rs 91.2 crore in Q1FY25. EBITDA came in at Rs 40.9 crore during the quarter ended in June 2025, reflecting a 14% QoQ increase and an impressive 83% YoY jump, with EBITDA margin improving to 31% from 25% last year.

In Q1FY26, profit before tax (PBT) improved to Rs 25.3 crore, up 113% YoY and 15% QoQ. During the quarter under review, the firm reported a net profit (PAT) of Rs 17.7 crore, representing a 27% QoQ and 110% YoY growth. The PAT margin improved to 13%, and diluted EPS stood at Rs 0.5, representing a 53% QoQ and 43% YoY growth.

"Looking ahead, we expect revenue to grow at a 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 favorable 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," said Mr. Baddam Karunakar Reddy, Managing Director, Apollo Micro Systems Limited.

Founded in 1985, Apollo Micro Systems Limited (AMS) is an Indian firm that develops, designs, and assembles unique electronic and electro-mechanical systems for the transportation, homeland security, aerospace, and defense industries.