Will Apollo Micro Systems’ Defence Expansion Strengthen Its Growth Momentum in FY26?
About Apollo Micro Systems
Apollo Micro Systems is a Hyderabad-based integrated defence and aerospace technology company providing electronic systems, components, and solutions to key defence establishments in India. The recent acquisition of IDL Explosives Ltd marks a strategic leap towards becoming a fully integrated Tier-1 defence OEM with enhanced manufacturing depth and operational synergy.
The acquisition positions Apollo Micro Systems as a comprehensive defence solution provider under the Make-in-India and Atmanirbhar Bharat initiatives, allowing it to strengthen its value chain and expand its footprint in the domestic defence sector.
Financial Highlights (Q2 FY26)
| Metric | Q2 FY26 | YoY |
|---|---|---|
| Revenue | ₹2,252.6 Mn | +40% |
| EBITDA | ₹591.9 Mn | +80% |
| EBITDA Margin | 26.3% | +630 bps |
| PAT | ₹300.3 Mn | +91% |
| PAT Margin | 13.3% | — |
Revenue ₹2,252.6 Mn reflects a strong year-on-year growth of 40%, driven by higher defence and aerospace orders.
EBITDA ₹591.9 Mn surged 80% YoY, supported by improved execution and product mix optimization.
EBITDA Margin 26.3% rose sharply by 630 basis points, showing operational leverage and cost efficiency.
PAT ₹300.3 Mn up 91% YoY, indicating strong bottom-line performance and improved profitability.
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Peer Comparison
| Company | Revenue Growth YoY | EBITDA Margin |
|---|---|---|
| Apollo Micro Systems | +40% | 26.3% |
| Paras Defence | +28% | 20% |
| Data Patterns | +24% | 27% |
Apollo Micro Systems maintains a strong performance compared to peers, underscoring its advantage in systems integration and specialized electronic design.
SWOT Analysis
Strengths
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Weaknesses
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The company’s long project cycles may impact liquidity, but operational efficiencies are expected to offset these risks.
Opportunities
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Threats
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Despite short-term volatility, Apollo Micro Systems stands well-positioned to capitalize on India’s defence modernization initiatives.
Valuation & Investment View
- Short-term: Positive — Margin strength and acquisition-driven visibility support performance.
- Medium-term: Capacity expansion and synergy integration to boost revenues.
- Long-term: Strategic role in India’s defence ecosystem ensures steady growth potential.
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Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Registered Investment Adviser, believes Apollo Micro Systems’ integrated manufacturing strategy, growing order book, and participation in indigenous defence projects position it for sustained growth. Explore more such insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Apollo Micro Systems Results
- How Will the Acquisition of IDL Explosives Impact Apollo Micro’s Growth?
- What Factors Drove Apollo’s EBITDA Margin Expansion?
- Is Apollo Micro Positioned to Benefit from India’s Defence Push?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
