Apollo Micro Systems in FY26: orders and profits lift stock

Stock jumps after March-quarter earnings

Apollo Micro Systems’ shares climbed as much as 9% intraday on Monday, May 18, after the company reported a stronger March-quarter performance marked by higher revenue and improved profitability. The move came even as broader market sentiment was mixed, with crude oil prices rising and global cues uncertain. The stock later pared gains but still ended the session higher.

By the close, Apollo Micro Systems was up 5.58% at ₹311, according to NSE data cited in the update. Over the past year, the stock has risen 127.94%, while the Nifty Total Market fell 1.73% in the same period (Source: NSE).

What the company said about quarterly momentum

The May 18 note pointed to stronger earnings momentum and investor optimism around Apollo Micro Systems’ growing role in India’s defence manufacturing ecosystem. It also highlighted that the company’s EBITDA rose during the quarter, although operating margins increased only slightly.

However, the same excerpt contained incomplete profit and revenue fields for the March quarter, including a net profit line with missing figures and a revenue line with unclear formatting. As a result, only the stock movement and the qualitative commentary can be stated with certainty from that portion of the text.

Separate trigger: fresh orders worth ₹510.25 crore

In a separate disclosure, Apollo Micro Systems said it secured orders worth ₹510.25 crore from various entities. On the day of that announcement, the stock added 2.89% to ₹323.50.

The order intake was split across customer segments. Orders worth ₹174.78 crore were from the Ministry of Defence, ₹95.28 crore from public sector defence undertakings, and ₹240.18 crore from private companies. The company described itself as a defence technology firm designing, developing and manufacturing electronic systems and subsystems for defence.

Another order update tied to subsidiary IDL Explosives

A Hindi-language report cited a separate order flow announcement where Apollo Micro Systems hit a 5% upper circuit and touched ₹272.50, before closing slightly lower at ₹272.20. The trigger was an update that its subsidiary, IDL Explosives Limited, received contracts totalling ₹420.89 crore.

That ₹420.89 crore included a running contract valued at ₹419.39 crore to supply bulk explosives to Coal India subsidiaries, plus an export order of ₹1.5 crore for cartridge explosives. The report framed these orders as part of normal business operations and as strengthening IDL’s position in explosives and defence-linked segments.

Industrial licence for high-energy explosives

Another update said Apollo Micro Systems’ shares rose 5% to ₹237.85 versus a previous close of ₹226.85 after its arm IDL Explosives received an industrial licence for producing high-energy explosives TNT and HMX under the Industries (Development and Regulation) Act, 1951. The licence is valid for 15 years from the date of issuance.

That note also reported the company’s market capitalisation at ₹7,983 crore at the time, and that the stock was down 33% from its 52-week high of ₹354.65 reached on September 17, 2025.

FY26 quarterly results snapshot (converted to ₹ crore)

The provided text also includes an earnings release for Q2 FY26. Revenue from operations was reported at ₹225.26 crore in Q2 FY26 versus ₹160.71 crore in Q2 FY25, a 40% year-on-year increase.

EBITDA was ₹59.19 crore versus ₹32.89 crore, up 80%, with an EBITDA margin of 26.3% for Q2 FY26. Profit before tax (PBT) rose to ₹43.15 crore from ₹22.46 crore, while profit after tax (PAT) increased to ₹30.03 crore from ₹15.73 crore.

The Managing Director, Baddam Karunakar Reddy, attributed the quarter’s performance to order-book execution and the transition of high-value systems into production. He also said the company expects revenue to grow at a CAGR of 45% to 50% over the next two years, driven by core business and excluding any contribution from a recent acquisition.

Order book visibility and exports referenced in the text

The material also cited an expansion in order book from ₹500 crore in 2024 to ₹735 crore by June 2025. It further referenced Apollo Micro Systems’ first export order worth $13.4 million, stated as ₹114 crore.

Another market snapshot in the text listed the stock at ₹309.00 on a particular trading day, with market capitalisation around ₹10,290 crore, a P/E ratio of 145.70 and a dividend yield of 0.081%. It also mentioned a quarterly dividend of ₹0.062 per share.

Key numbers at a glance

Why the updates mattered for investors

Across the disclosures, the common theme is that Apollo Micro Systems is benefiting from higher order inflows and improved quarterly profitability. The order wins span government defence buyers, defence PSUs and private-sector customers, suggesting demand across multiple channels.

At the same time, some market notes in the text also flagged volatility. For example, one update stated the stock had fallen 33% from a 52-week high reached in September 2025, even though it remained up strongly over longer periods.

Conclusion

Apollo Micro Systems’ stock has reacted positively to a mix of earnings updates, defence-linked order wins and regulatory clearances related to explosives manufacturing through its subsidiary. The next key monitorables, based on the provided disclosures, are continued execution of the stated order book and the follow-through of quarterly performance trends in FY26.