Is Apollo Micro Systems The Next Big Defence Darling? Q1FY26 Numbers Impress

Apollo Micro Systems (AMS) had the best first-quarter result in the company's history, starting FY26 with remarkable momentum.

The company's revenue increased by 46% YoY to Rs 133.58 crore in Q1 FY26 from Rs 91.20 crore in Q1 FY25. The seamless running of its robust order book and the introduction of many high-value systems into full-scale production were the main drivers of this growth.

Regarding profitability, AMS said that its EBITDA climbed from Rs 22.37 crore in the same quarter last year to Rs 40.94 crore, an 83% rise. Compared to Q1 FY25, when it was 25%, the EBITDA margin increased by 600 basis points to a new record of 31%, highlighting the company's strong operating leverage and effective execution.

While profit after tax (PAT) margin jumped by 400 basis points, from 9% year-on-year and quarter-on-quarter to 13%, net profit more than doubled, posting a 110% year-on-year growth to Rs 17.68 crore from Rs 8.43 crore in Q1 FY25.

During the quarter, AMS also received its first export order, for USD 13.37 million, or around Rs 113.81 crores. This milestone underscores the company's commitment to growing its global presence and is a turning point in its growth trajectory.

"As we continue to execute on our strategic vision, this order underscores our potential to unlock substantial opportunities in new markets. As we look toward a horizon brimming with opportunity and purpose, we are driven by a singular, unshakable belief: India must lead not only in strength, but in the science and sovereignty of strategic innovation. It is with immense pride and unwavering resolve that we present to you our roadmap a blueprint not merely for growth, but for greatness," said Mr. Baddam Karunakar Reddy, Managing Director of the company.

With a committed investment of Rs 100 crores in FY26, AMS said it is establishing a solid, future-ready foundation intended to spur innovations in defence systems, premium electronics, and next-generation strategic platforms.

"The recent geopolitical developments, particularly the escalation of tensions between India and Pakistan, have further accelerated the demand for indigenous, mission-critical defence solutions. Several of our systems were successfully tested and demonstrated during this period, attracting significant interest from key stakeholders across India's defence value chain," Baddam Karunakar Reddy stated.

The shares of Apollo Micro Systems Ltd. (APOLLO) were trading at Rs 172.95 on the NSE as of Monday, August 4, 2025, at 12:25 PM IST. This represents a gain of around 1.77% from the stock's previous closing of Rs 169.94. Over the course of today's trading session, the stock has seen a high of Rs 173.45 and a low of Rs 168.65, having opened at Rs 169.94. Apollo Micro Systems' 52-week high is Rs 221.38, and its 52-week low is Rs 87.99.