Profit Rockets, Margins Hold Strong; Why Investors Are Tracking Q3 Result of This Defence Company?

Results for the Third Quarter (Q3), which ended on December 31, 2025, have been released by Apollo Micro Systems Limited (AMS). Compared to Rs 225.26 crore in Q2 FY26 and Rs 148.39 crore in Q3 FY25, the company's revenue from operations climbed to Rs 252.22 crore in Q3 FY26, demonstrating a significant 70% year-on-year growth. The total sales figure for the quarter was Rs 253.13 crore, up 69% YoY from Rs 149.37 crore in the same quarter previous year, including other income of Rs 0.91 crore.

Revenue momentum was strong on a 9M FY26 basis. Revenue increased by 53% YoY to Rs 611.07 crore from Rs 400.30 crore in 9M FY25. The nine-month total revenue climbed by 53% to Rs 614.15 crore from Rs 402.46 crore in the same time last year.

Due to a larger scale of operations, the operating expenses (excluding depreciation, amortization, and finance costs) for Q3 FY26 were Rs 201.83 crore, up from Rs 166.08 crore in Q2 FY26 and Rs 110.44 crore in Q3 FY25. These expenses rose from Rs 307.08 crore in the same period previous year to Rs 460.55 crore for 9M FY26.

Despite higher costs, EBITDA (excluding other income) grew 33% YoY to Rs 50.39 crore in Q3 FY26 from Rs 59.19 crore in Q2 FY26 and Rs 37.96 crore in Q3 FY25. While margins stayed steady at 24.6% for 9M FY26, up from 23.3% in 9M FY25, the EBITDA margin for the quarter was 20.0%. Overall, 9M FY26 EBITDA climbed dramatically to Rs 150.52 crore, up 61% YoY from Rs 93.22 crore.

The company's Profit Before Tax (PBT) for Q3 FY26 came in at Rs 31.57 crore, compared with Rs 43.15 crore in Q2 FY26 and Rs 26.19 crore in Q3 FY25, marking a 21% YoY rise. On a nine-month basis, PBT surged to Rs 100.00 crore, up from Rs 60.55 crore in 9M FY25, delivering a strong 65% YoY growth.

After accounting for tax of Rs 8.69 crore in Q3 FY26, the company reported a Profit After Tax (PAT) of Rs 22.88 crore, compared to Rs 18.24 crore in Q3 FY25, registering 25% YoY growth. For 9M FY26, PAT rose significantly to Rs 70.59 crore, up from Rs 42.40 crore in the same period last year, translating into a healthy 67% YoY increase. PAT margin stood at 9.1% in Q3 FY26 and 11.6% for the nine-month period.

Diluted EPS for Q3 FY26 was reported at Rs 0.7, while 9M FY26 EPS stood at Rs 2.1, compared to Rs 1.4 in 9M FY25.

"Looking ahead, we expect revenue to grow atleastat a CAGR of 45% to 50% over the next three 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.We are also pleased to announce an additional acquisition by ADIPL, which is expected to be completed before the end of this financial year. This acquisition will significantly enhance the our organic growth and overall strength," commented Mr. BaddamKarunakarReddy, Managing Director, Apollo Micro Systems Limited.

Apollo Micro Systems Limited (NSE: APOLLO | BSE: 540879), is a 41 years old pioneer in defence technology, specializes in the design, development, and manufacture of advanced electronic, electro-mechanical, and engineering systems.