Apollo Micro Systems delivered exceptional first-quarter results for FY27, with consolidated net profit surging 43% to ₹25.2 crore from ₹19 crore in the same quarter last year. According to Live Mint, the company's revenue from operations jumped 88% to ₹251.3 crore compared to ₹134 crore in Q1 FY26, marking the best-ever first-quarter performance in the company's history. The company's EBITDA increased 18% to ₹48 crore from ₹41 crore, though EBITDA margin fell to 21.4% from 30.6% in Q1 FY26, representing a decline of 9.2 percentage points. Managing Director Reddy noted that the company's Q1 performance reflected its execution and resilience, with the company committed to focusing on execution and remaining aligned with evolving defence sector requirements.
The company has evolved from a defence subsystem supplier to a fully integrated weapon systems manufacturer with 41 years of experience and participation in 150+ indigenous defence programmes. As reported by The Financial Express, Apollo's customers include DRDO, Defence PSUs, the Ministry of Defence, and private defence OEMs. The strategic shift from supplying defence subsystems to manufacturing complete weapon systems has fundamentally changed the company's margin profile and competitive positioning in the defence sector.
Apollo completed the acquisition of IDL Explosives for backward integration into defence and industrial explosives manufacturing, reducing dependence on external suppliers. The company also signed a share purchase agreement to acquire a 41.33% stake in Premier Explosives for ₹1,550 crore involving 2.22 crore equity shares, giving Apollo control of Premier Explosives and expanding its presence in explosives and defence manufacturing. Additionally, Apollo secured two significant programme wins: the Indian Navy Make-II Prototype Sanction Order for SAVIOR-ASW autonomous underwater surveillance system and the IAF Make-II Prototype Sanction Order for a 500 kg Smart Bomb. The company was also empanelled by the Indian Air Force as a Prime Development Agency for the Indigenous Precision Range Extension Kit (IPREK) programme under DAP 2020, with the latest order coming days after this empanelment.
Apollo Micro Systems has achieved a significant operational milestone by successfully delivering its indigenously developed Safety & Detonation Device (SDD) to the Indian Navy. The handover ceremony took place in the presence of Rear Admiral Rupak Barua, VSM, Director General of Naval Inspection (DGNAI) of the Indian Navy, along with senior naval officials and Apollo's leadership team. The Safety Arming Device serves as the final safeguard between weapons and targets, ensuring complete security during storage, handling, transportation and launch. The stock closed at ₹403 on August 7, 2026, down 0.43% in the previous session, demonstrating continued investor confidence in the company's transformation. The stock has delivered 28.54% gains in three months, 61% in six months, and 43.69% year-to-date basis.
The company's order book stood at ₹1,704 crore as of August 8, 2026, providing strong revenue visibility for future quarters. Earlier on August 5, Apollo secured fresh orders worth ₹213.39 crore from the Defence Research and Development Organisation (DRDO), Defence Public Sector Undertakings (PSUs), and private sector companies. Rising defence expenditure by major economies, including the US, China, India, Russia, the UK and France, is expected to remain a major growth catalyst for the market. State-owned defence public sector undertakings also witnessed a 42.8% rise in exports during the financial year, taking the total to ₹8,389 crore, with explosives and ammunition components accounting for a significant share of these exports.
