Apollo Micro Systems Expands Defence Portfolio With Strategic MoU Partnerships

In contrast to the previous finish of Rs 119.08, Apollo Micro Systems (AMS) shares began higher on the NSE on Wednesday at Rs 120.49 and achieved an intraday high of Rs 121. The stock was up 1.02% at Rs 120.30 a share as of 10:39 a.m. IST.

A Memorandum of Understanding (MoU) for a strategic commercial collaboration centred on the cooperative production, marketing, and research of cutting-edge air defence systems, such as anti-drone and anti-aircraft solutions, was signed by AMS and Troop Comforts Limited on Tuesday. "This collaboration envisions the joint manufacturing, marketing, and development of various categories of Systems to meet the current and future demands of the Indian Defence forces, paramilitary forces, police organizations, central government organizations, state government organizations, the civil sector, and the export market," said Apollo Micro Systems (AMS) in a stock exchange filing.

Additionally, on Tuesday, AMS and Munitions India Limited signed a Memorandum of Understanding (MoU) for the cooperative development of a number of defence systems for the domestic and foreign markets. "As part of this collaboration, both parties will identify and pursue opportunities for the design, development, and deployment of advanced defence technologies. The exchange of the MoU reinforces our commitment to leveraging collective expertise and resources to drive innovation in the sector," AMS informed stock exchanges.

Apollo Micro Systems (AMS), a small-cap defence and aerospace company, received new orders from numerous private sector companies totalling more than Rs 50 crore on Monday.

"We are pleased to inform you that the Company has received orders worth Rs. 50.97 crores for execution of Security Solutions and supply of Defence Products from multiple private companies," Apollo Micro Systems said in a stock exchange filing on 10th February, 2025.

This came after the company posted stellar performance in the quarter ended in December 2024.

Last week Redon Systems Pvt Ltd and Apollo Micro Systems Limited signed a Consortium Agreement on Wednesday to work together on a manufacturing relationship. This consortium's goal is to acquire Containerised Automatic Landing Module systems by utilising their joint manufacturing capabilities. Through this Consortium Agreement, Apollo and Redon aim to work jointly to build solutions for Allied systems and Loitering Munition as per a regulatory filing.

AMS reported that during the fiscal year 2025 Q3, the company's financial performance improved substantially. Compared to Q3 FY24, revenue increased 62.5% reaching Rs 148.39 crore, while profit after tax rose 83.1% to Rs 18.24 crore. For the first three-quarters of FY25, revenue reached Rs 400.30 crore, a 69.5% increase compared to last year, whereas profit skyrocketed 133.2% year on year and reached Rs 42.40 crore. Looking at the fiscal year 2025, AMS reported Rs 371.63 crore in revenue, which was a 24.91% increase from the previous year, while PAT nearly doubled, growing by 66.01% to Rs 31.11 crore.

In a strategic endeavour to boost its defence portfolio, AMS has entered into a 5-year MoU with GRSE Garden Reach Shipbuilders and Engineers Limited (GRSE). The purpose of the collaboration is to jointly design, develop and export sophisticated weapon and electronic systems used in underwater and air defense for commercial and military purposes. The company will utilize their existing strengths in manufacturing to not only devise new systems but also offer modernization services that bolster self-reliant defense capabilities and meet the increasing global supply.

Also boosting its defense credentials, AMS has won tender offers L1 for Rs 7.37 crore for the orders from the Defense Research and Development Organization (DRDO) and received another order of L Rs 6.14 crore from DRDO. The attention of Foreign Institutional Investors (FII) was also drawn by the rapid development of the company and increased their holdings to 0.74% from 0.19% in September 2024, which marked buying during this period of 1662374 shares.

AMS ranks on the BSE Small Cap Index and has a market cap of over Rs 4.04KCr has rewarded its investors with multibagger returns of 825% over the past three years and an incredible 1600% in five years.

Active since 1985, Apollo Micro Systems specializes in the design, development, and validation of important electronic and electromechanical systems for the aerospace, defense, and space industries. The company has proven its importance to the Indian defense technology sector through the relentless focus of R&D toward advanced projects like torpedo-homing systems, advanced underwater mines, and many other impressive accomplishments.