Apollo Micro Systems Wins Rs 25.79 Crore Defence Order

Introduction to the New Contract

Apollo Micro Systems Limited announced on January 2, 2026, that it has been declared the lowest bidder (L1) for a significant contract from a Defence Public Sector Undertaking (PSU). The order, valued at Rs 25.79 crore (Rs 257.89 million), was secured in the company's regular course of business. According to the regulatory filing, the project is scheduled for completion within an 18-month timeframe. This development underscores the company's strengthening position within India's defence manufacturing ecosystem and its consistent ability to secure government contracts.

Sustained Order Momentum

The latest win is part of a series of successful bids and contract acquisitions for Apollo Micro Systems and its subsidiaries, highlighting strong business momentum at the start of the year. On January 1, 2026, its subsidiary, Apollo Defence Industries Private Limited (ADIPL), secured a contract worth Rs 150 crore from a private sector client. This followed a substantial order in late December 2025, where another subsidiary, IDL Explosives Limited, won a contract for bulk explosives supply valued at Rs 419.39 crore from subsidiaries of Coal India. The consistent flow of orders from both public and private sectors reflects a diversified and robust business pipeline.

Strategic Diversification and Expansion

Apollo Micro Systems is actively expanding its capabilities beyond its traditional focus on electronic systems. The company is venturing into higher-value hardware, including anti-drone systems and Directed Energy Weapons (DEW). It recently received Transfers of Technology (ToTs) from the Defence Research and Development Organisation (DRDO) for laser-based DEW, positioning itself at the forefront of modern defence technology. To support this growth, the company has announced plans for a major greenfield expansion in Telangana. This project, involving an investment of Rs 1,500 crore, will establish new facilities for manufacturing missile warheads, rocket motors, and artillery ammunition, significantly scaling up its production capacity.

Market Performance and Investor Confidence

The company's strategic successes are mirrored in its stock market performance. The stock has delivered exceptional returns, rising approximately 125% over the past year and over 2,100% in the last five years. Technical indicators show continued investor interest, with the Relative Strength Index (RSI) in the mid-range around 60, suggesting the stock is not in overbought territory despite its gains. It continues to trade above its 50-day and 200-day simple moving averages, indicating a positive long-term trend. This performance is supported by growing confidence from institutional investors. Total institutional holding has increased to 9.21%, with Foreign Institutional Investors (FII) increasing their stake to 7.83%.

Company Background and Industry Role

Founded in 1985, Apollo Micro Systems has established itself as a key supplier of mission-critical systems for India's defence and space programs. The company works closely with prominent organizations like the Indian Space Research Organisation (ISRO) and DRDO, providing specialized electronics for missile platforms, avionics, naval systems, and space applications. As a participant in over 150 domestic defence and space initiatives, AMSL is a significant contributor to the government's 'Aatmanirbhar Bharat' (self-reliant India) initiative in the defence sector.

Financial Outlook and Projections

The company's financial health remains strong, with management providing a base-case revenue growth guidance of 45-50% for the FY2026-2027 period. This optimistic outlook is backed by a robust order book, which stood at Rs 785 crore as of September 30, 2025. The consistent order wins and strategic expansion plans are expected to fuel this growth trajectory, solidifying the company's market position.

Conclusion

The recent Rs 25.79 crore order from a Defence PSU is another testament to Apollo Micro Systems' operational excellence and strategic importance in India's defence industry. Coupled with its aggressive expansion into advanced defence hardware and a strong pipeline of orders, the company is well-positioned for sustained growth. Investors and industry observers will be watching closely as it executes these projects and continues to contribute to India's goal of defence industrial self-reliance.