Apollo Micro Systems Soars on ₹100 Crore Drone Contract

Introduction to the New Defence Order

Hyderabad-based Apollo Micro Systems Ltd (AMSL), a prominent player in the aerospace and defence technology sector, has secured a significant new order valued at ₹100.25 crore. The contract involves the supply of Unmanned Aerial Systems (UAS), reinforcing the company's growing influence in India's indigenous defence manufacturing landscape. The announcement, made through a regulatory filing on December 26, 2025, has drawn positive attention from the market, highlighting the company's robust capabilities and strategic alignment with national defence priorities.

Contract Details and Execution Timeline

The order was placed by a private entity, with the final delivery of the UAS designated for the Indian Ministry of Defence. According to the company, this contract was secured in the ordinary course of business. A key aspect of this deal is its aggressive execution timeline, with Apollo Micro Systems committed to completing the delivery within four months. This tight deadline underscores the company's operational efficiency and its readiness to meet urgent defence procurement requirements. The order not only adds substantial value to the company's near-term revenue visibility but also strengthens its credentials as a reliable partner in critical defence projects.

Strategic Importance and 'Aatmanirbhar Bharat'

This contract is a clear indicator of the Indian military's increasing reliance on domestically produced drone technology. Unmanned systems are no longer a peripheral component but a core operational necessity for modern warfare, offering crucial advantages in real-time intelligence, surveillance, reconnaissance, and combatant safety. The deal aligns perfectly with the Indian government's 'Aatmanirbhar Bharat' (Self-Reliant India) initiative, which aims to bolster domestic manufacturing capabilities, particularly in the defence sector. By securing this order, Apollo Micro Systems demonstrates the growing competence of private sector firms in developing and delivering advanced defence solutions.

Ambitious Expansion in Telangana

Complementing its recent order wins, Apollo Micro Systems has unveiled ambitious expansion plans. The company announced a staggering investment of ₹1,500 crore to establish a new greenfield defence manufacturing facility in Telangana. This state-of-the-art plant is slated to produce a wide range of critical defence hardware, including missile warheads, rocket motors, and various calibres of artillery ammunition. The facility will also handle the production of complete ammunition systems for rockets and other advanced weaponry, positioning AMSL as a full-spectrum defence manufacturer and further integrating it into the national defence supply chain.

Financial Health and Order Book Status

Apollo Micro Systems has demonstrated strong financial performance, providing a solid foundation for its growth ambitions. For the fiscal year 2024-2025, the company reported a record revenue of ₹562.07 crore, marking a 51.2% year-on-year increase. Profitability also saw a significant surge, with net profit jumping by over 81% to ₹56 crore. This growth is supported by a healthy order book, which stood at ₹785 crore as of September 30, 2025. These figures reflect sustained demand for its products and strong execution capabilities.

Key Financial and Order Highlights

To provide a clearer picture of the company's current standing, the following table summarizes key data points:

Stock Performance and Market Valuation

The company's strategic successes have been well-received by the investor community. The stock has delivered impressive returns, surging over 120% in the past year. As of recent data, Apollo Micro Systems has a market capitalization of approximately ₹9,126 crore. The stock has traded between a 52-week high of ₹354.7 and a low of ₹103.77, indicating significant upward momentum. Key valuation metrics include a Price-to-Earnings (PE) ratio of around 118.77 and a Price-to-Book (PB) ratio of 6.18, reflecting the market's high growth expectations for the defence sector player.

Conclusion: A Key Player in India's Defence Modernization

The recent ₹100.25 crore UAS contract is more than just a financial win for Apollo Micro Systems; it is a testament to its technological prowess and its integral role in India's defence modernization journey. Supported by strong financial performance, a robust order book, and strategic expansion plans, the company is well-positioned to capitalize on the growing opportunities within the domestic defence and aerospace industry. As India continues to prioritize self-reliance in defence, companies like Apollo Micro Systems are set to play a pivotal role in scripting the nation's manufacturing success story.