Apollo Micro Systems Q3 Revenue Soars 70% to Record ₹252 Crore

Introduction

Apollo Micro Systems Ltd, a prominent Hyderabad-based private defense technology firm, announced a stellar financial performance for the third quarter of fiscal year 2026. The company reported its highest-ever quarterly revenue, driven by strong execution of its order book and the successful transition of several high-value projects into the production phase. The results underscore the company's robust growth trajectory and its strategic alignment with India's increasing focus on defense indigenization.

Record-Breaking Quarterly Performance

For the quarter ending December 31, 2025, Apollo Micro Systems posted a consolidated revenue from operations of ₹252.2 crore, a significant 70% increase from the ₹148.3 crore recorded in the same quarter of the previous fiscal year. This top-line growth reflects the company's operational efficiency and its ability to capitalize on a strong demand environment. The company's Profit After Tax (PAT) also saw a healthy rise, growing by 25.4% year-on-year to ₹22.88 crore from ₹18.24 crore in Q3 FY25. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), excluding other income, increased by 33% to ₹50.39 crore.

Sustained Momentum in Nine-Month Results

The company's strong performance was not limited to the third quarter. For the nine-month period ending December 31, 2025, Apollo Micro Systems demonstrated consistent growth. Revenue from operations for the first nine months of FY26 surged by 53% to ₹611.07 crore, compared to ₹400.30 crore in the corresponding period of the previous year. The nine-month PAT witnessed an even more impressive climb, rising by 67% to ₹70.59 crore from ₹42.40 crore in 9M FY25. This sustained momentum highlights the company's strong business fundamentals and execution capabilities.

Management's Confident Outlook

Baddam Karunakar Reddy, the Managing Director of Apollo Micro Systems, expressed confidence in the company's future. He attributed the record quarterly revenue to the efficient execution of a robust order book and the scaling up of production for multiple key systems. Looking ahead, Reddy projected that the company's revenue could grow at a Compound Annual Growth Rate (CAGR) of 45-50% over the next three years. This optimistic forecast is based purely on the company's core business operations and does not factor in potential revenue from recent or upcoming acquisitions, signaling strong organic growth potential.

Strategic Acquisitions and Expansion

A key part of Apollo Micro Systems' growth strategy involves strategic acquisitions to enhance its capabilities and market reach. During the quarter, the company completed the acquisition of IDL Explosives Limited for ₹107 crore through its subsidiary, Apollo Defence Industries Private Limited. Furthermore, the management has announced plans for an additional acquisition, which is expected to be finalized before the end of the current financial year. These moves are aimed at strengthening the company's position and contributing to the 'Atmanirbhar Bharat' initiative in the defense sector.

Strong Order Book Provides Revenue Visibility

The company's future revenue is supported by a strong and healthy order book. As of December 31, 2025, the consolidated order book stood at ₹1,305 crore. This provides significant revenue visibility for the coming quarters and reinforces the management's positive growth outlook. The substantial order pipeline is a testament to the trust clients place in the company's technological expertise and delivery capabilities in the critical defense sector.

Market Reaction and Stock Performance

Despite the strong financial results, the company's stock experienced a minor dip of around 2.5% in the trading session following the announcement. However, the long-term performance of the stock remains exceptional. Shares of Apollo Micro Systems have delivered a 95% return over the past year, more than doubling investor wealth in two years. Over a three-year and five-year period, the stock has surged by an impressive 600% and 1,900%, respectively, reflecting sustained investor confidence in its long-term growth story.

Conclusion

Apollo Micro Systems' Q3 FY26 results have set a new benchmark for the company, with record revenues and solid profit growth. The performance is backed by strong operational execution, a healthy order book, and strategic initiatives that align with national defense priorities. With a clear growth strategy and a confident management outlook projecting a 45-50% CAGR, the company is well-positioned to continue its upward trajectory and play a pivotal role in India's defense technology landscape. Investors will be closely watching the completion of its next planned acquisition and its continued performance in the upcoming quarters.