Apollo Micro Systems shares surged nearly 13% to hit a 52-week high of ₹365 on Tuesday, May 20, 2026, following the announcement of record Q4FY26 earnings. The defence stock rallied as much as 13% to ₹365 apiece on the BSE, with trading volumes reaching 678.9 lakh against the average volume of 160 lakh for the past 30 days. According to Dalal Street Investment Journal, the stock hit a fresh all-time high on May 19, with the aggressive buying suggesting strong trader confidence in the company's performance. The stock has delivered massive gains across multiple time frames, rising 24% in the last three trading sessions, gaining 23% in one month and advancing 53% over the past three months.
Apollo Micro Systems reported robust growth in both revenue and profitability for the quarter ended March 31, 2026, driven by strong business momentum and operational performance. As reported by Dalal Street Investment Journal, the company posted a consolidated net profit of ₹36.79 crore in Q4 FY26, marking a sharp jump of 163.5% from ₹13.96 crore reported in the corresponding quarter of the previous fiscal year. Consolidated revenue from operations during the March quarter rose 81.3% year-on-year to ₹293.26 crore from ₹161.77 crore in Q4FY25, with sequential growth of 16.3% from ₹252.22 crore in Q3FY26. The company's PAT margin expanded significantly to 12.5% from 8.6% in Q4FY25 and 9.1% in Q3FY26. The latest quarter marked net sales of ₹293.26 crores and PBDIT of ₹67.65 crores, both representing record highs for the company.
For the full financial year FY26, Apollo Micro Systems reported a consolidated net profit of ₹107.38 crore, compared with ₹56.36 crore in FY25, marking the highest ever annual PAT recorded by the company. According to Dalal Street Investment Journal, consolidated revenue from operations for the entire financial year stood at ₹904.32 crore, registering strong growth from ₹562.07 crore reported in FY25, representing the highest ever annual revenue recorded by the company. The company's EBITDA (excluding other income) for FY26 stood at ₹218.16 crore, up 68.8% from ₹129.21 crore in FY25, with EBITDA margin improving to 24.1% from 23.0% in FY25. The board has recommended a final dividend of ₹0.25 per equity share for FY26, subject to shareholder approval at the upcoming Annual General Meeting.
The stock's impressive performance is underpinned by a broad alignment of technical indicators signalling robust momentum despite a subdued broader market backdrop. As per latest technical analysis, the Moving Average Convergence Divergence (MACD) indicator is bullish on both weekly and monthly charts, signalling sustained upward momentum. The Bollinger Bands have expanded on these timeframes, confirming increased volatility in the direction of the rally and suggesting the stock is trending strongly rather than consolidating. However, valuation metrics present a nuanced picture with the PEG ratio at 1.5, indicating that price gains have somewhat outpaced earnings growth which rose by 100.3% over the past year. The enterprise value to capital employed ratio is elevated at 7.4, reflecting a premium valuation relative to capital base, while the stock is considered very expensive on a ROCE basis, though it trades at a discount compared to peers' historical averages.
The company's consolidated order book stood at ₹1,432 crore as of March 31, 2026, further strengthened by a recent order win from Coal India worth approximately ₹421 crore. Managing Director Baddam Karunakar Reddy highlighted that FY 2025-26 has been a breakthrough year for Apollo Micro Systems, marking their highest-ever annual revenue and profitability. He noted the successful conclusion of the IDL Explosives acquisition through ADIPL, the award of the DPIIT license for UAV manufacture, and the receipt of their first export order. The company expects an additional acquisition by ADIPL to be completed before the end of the next financial year, which will significantly complement their organic growth. The stock's outperformance against a weakening Sensex highlights its unique strength within the Aerospace & Defense sector, with the technical alignment suggesting the momentum remains firmly intact for now.
