Apollo Micro Systems FY26: Revenue +61% amid DAC AoN

What the DAC clearance signals

India’s Defence Acquisition Council (DAC) has cleared defence procurement proposals estimated at about ₹52,000 crore, giving Acceptance of Necessity (AoN) for multiple platforms and weapon systems. The approvals cover the Indian Army and the Indian Navy, with the stated objective of improving operational capability through modern systems. AoN is an in-principle administrative approval, after which the procurement process moves ahead.

For listed defence suppliers and their investor base, such clearances matter because they expand the pipeline of planned procurement categories. In parallel, Apollo Micro Systems, a Hyderabad-based defence electronics player, has reported strong growth numbers for FY26 and a fresh set of defence-linked order wins, keeping the stock in focus.

DAC approvals: scale and scope

The defence ministry said the capability enhancement approved by the council spans a range of systems, from anti-drone electronic warfare to missile weapon systems and protective systems for armoured platforms. The DAC meeting was chaired by Defence Minister Rajnath Singh, as per the ministry’s statement.

While the AoN does not automatically translate into immediate revenue for any single vendor, it is a key step that sets procurement processes in motion. The approvals also align with the Government of India’s stated targets of ₹3 lakh crore in domestic defence production and ₹50,000 crore in defence exports by 2029.

Indian Army: anti-drone, missiles, tank protection

For the Indian Army, the DAC cleared procurement proposals for the following systems:

• Anti-Unmanned Aerial Vehicles (UAV) Electronic Warfare System, ‘Akash Tarang’
• Man-Portable Anti-Tank Guided Missile (MPATGM) systems
• Medium-Range Surface-to-Air Missile (MRSAM) weapon systems
• Very Short-Range Air Defence Systems (V-SHORADS)
• Active Protection Systems for tanks
• Jet-based kamikaze drone systems

These categories reflect a mix of counter-UAV capability, layered air defence, and survivability upgrades for armoured platforms.

Indian Navy: mines, shipborne drones, test facility

For the Indian Navy, the DAC approved procurement proposals and infrastructure creation covering:

• Multi-Influence Ground Mines (MIGM)
• Naval Shipborne Unmanned Aerial Systems (NSUAS)
• Establishment of a Land-Based Testing Facility for electric propulsion systems

The inclusion of the MIGM category is notable for domestic suppliers already linked to the programme. The Land-Based Testing Facility approval also points to work beyond weapon systems, covering propulsion testing capability.

Summary table: what the DAC cleared

Apollo Micro Systems: why the stock is being tracked

Apollo Micro Systems has been positioned as a Tier-1 supplier to DRDO, HAL, BEL and the Ministry of Defence. The company has also said it is licensed to manufacture missile-class weapon systems under the Arms Act, 1959.

Against the backdrop of expanding procurement categories, the company has disclosed multiple business updates across financial performance, licences, and order inflows. Separately, reports also noted the stock gained over 3% on Friday, and another update described a 140% gain in six months and a new 52-week high of ₹275.95 after DRDO-related approvals.

FY26 performance: revenue, profit, margins, EPS

As per a company update dated 19 May 2026 from Hyderabad, Apollo Micro Systems said FY26 revenue rose to ₹904 crore, up 61% year-on-year from ₹562 crore in FY25. The update also reported PAT at ₹36.79 crore versus ₹22.88 crore, a 60.80% year-on-year increase.

The company reported a margin of 12.55% versus 9.07%, and EPS of ₹1.09 versus ₹0.69, both on a year-on-year basis.

Quarterly numbers that were disclosed

Apollo Micro Systems also announced Q1 FY26 results, reporting revenue of ₹134 crore, up 46% year-on-year from ₹91 crore in Q1 FY25. PAT for Q1 FY26 was reported at ₹18 crore, up 110% year-on-year from ₹8 crore in Q1 FY25.

Another disclosed data point stated the company reported a 70% year-on-year revenue surge to ₹252.2 crore in Q3 FY26.

Order wins: split across MoD, PSUs and private sector

The company informed exchanges that it secured fresh business orders worth ₹51.02 crore in the ordinary course of business. The customer split provided in the filing was:

• Ministry of Defence orders: ₹17.48 crore
• Public Sector Defence Undertakings: ₹9.53 crore
• Private sector companies: ₹24.02 crore

In a separate update, Apollo Micro Systems said it received new orders totalling ₹73.33 crore (₹733.26 million), spanning systems for defence platforms. The items mentioned included homing systems for heavy-weight torpedoes, fire control systems, launchers for strategic missile programmes, avionic LRUs for missiles, and cyber security systems for intelligence departments.

Licences, ToT approvals, and programme linkages

Apollo Micro Systems said it received a lifetime arms manufacturing licence from the Department for Promotion of Industry and Internal Trade (DPIIT) under the Arms Act, enabling manufacturing of ammunition and weapon systems, including missiles, anti-tank guided missiles, torpedoes, aerial bombs, rockets and loitering munitions.

The company also disclosed that in December 2025 it received approval from DRDO for two Transfers of Technology related to Laser-Based Directed Energy Weapon (DEW) systems. It also stated that in November 2025 it signed a tripartite MoU with the Indian Navy and IIT Chennai.

On business wins earlier in 2026, the company announced that on January 2, 2026 it was declared the lowest bidder (L1) for an order valued at ₹25.79 crore from a Defence PSU, with completion scheduled within 18 months. It also stated that on January 1, 2026 its subsidiary Apollo Defence Industries Private Limited secured a ₹150 crore contract from a private sector client for defence electronics.

The company has also referenced its continuing role as an approved production agency for the Multi-Influence Ground Mine (MIGM), a programme category that also features in the DAC’s latest list for the Navy.

Key numbers snapshot: Apollo Micro Systems

Market impact and what investors can track

The DAC’s AoN of about ₹52,000 crore adds visibility to the defence procurement pipeline across categories such as counter-UAV systems, air defence, and naval unmanned systems. For suppliers, the practical impact depends on tender timelines, qualification criteria, and the competitive landscape, none of which are detailed in the disclosed note.

For Apollo Micro Systems, the near-term market relevance in the disclosures is driven by three factors: a sharp year-on-year improvement in FY26 revenue and profitability metrics, continued order inflows across MoD, defence PSUs, and private clients, and regulatory clearances and licences that expand the set of categories it can bid for.

Conclusion

The DAC’s AoN clearances, estimated at about ₹52,000 crore, outline a broad modernisation push across the Army and Navy, including systems such as Akash Tarang, MPATGM, MRSAM, V-SHORADS, MIGM and NSUAS. Apollo Micro Systems has simultaneously reported strong FY26 growth, disclosed quarterly improvements, and announced new orders and licensing milestones. The next material updates for investors will likely come from further tender progress in approved categories and additional exchange filings on order inflows and execution timelines.