Apollo Micro Systems (AMS) Q2 Results: Defence Stock Posts Historic Growth In Revenue & PAT

Apollo Micro Systems Limited released its results for the quarter and a half that ended on September 30, 2025.

The company performed well in Q2FY26, with consolidated revenue from operations increasing 40% YoY from Rs 160.71 crore and 69% QoQ to Rs 225.26 crore from Rs 133.58 crore in Q1FY26. Total revenue was Rs 226.57 crore, including other income of Rs 1.30 crore. This is a 43% YoY jump from Rs 253.09 crore in H1FY25 to Rs 361.02 crore in H1FY26. With margins rising to 26.3%, EBITDA (excluding other income) came in at Rs 59.19 crore, up 45% sequentially and 80% YoY.

The company's profit before tax (PBT) increased 92% YoY and 71% QoQ to Rs 43.15 crore in H1FY26, from Rs 34.36 crore the year before to Rs 68.44 crore. Profit after tax (PAT) climbed 70% sequentially and 91% YoY to Rs 30.03 crore in Q2FY26 after accounting for tax of Rs 13.12 crore. This resulted in a 97% YoY spike in H1FY26 PAT to Rs 47.71 crore. Strong operational efficiency and profitability momentum were demonstrated by the PAT margin's improvement to 13.3% and the diluted EPS's rise to Rs 0.9 from Rs 0.5 in the previous quarter.

"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. 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," said Mr. Baddam Karunakar Reddy, Managing Director, Apollo Micro Systems Limited.

"As we move forward, our focus remains steadfast: to innovate with purpose, deliver with precision, and deepen our strategic partnerships. At Apollo Micro Systems, we are not only setting new performance benchmarks - we are actively shaping the future of a self-reliant, secure, and technologically advanced defence infrastructure for our nation," he further added.

Apollo Micro Systems Limited is an engineering, electromechanical, and electronic design, production, and supply firm (NSE: APOLLO | BSE: 540879).

Apollo Micro Systems Ltd has announced the allotment of 35,088 equity shares following the exercise of convertible warrants allotted earlier on a preferential basis. On November 12, 2025, the Securities Allotment Committee approved the conversion following the investor, Mr. Piyush Bhupendra Gala, paying Rs 30,00,024 as the warrant exercise price.

The same number of warrants were converted into these equity shares, which had a face value of Rs 1 apiece and were issued at a price of Rs 114 per share, including a premium of Rs 113. With that allocation, the company's issued and paid-up share capital, which consists of 33,56,74,736 equity shares worth Rs 1 apiece, has grown to Rs 33.56 crore.