Apollo Micro Systems has secured fresh orders worth ₹134.35 crore from the Defence Research and Development Organisation (DRDO), the Indian Navy, defence public sector undertakings (PSUs), a state government and private sector clients. According to reports from CNBC TV18, the company informed exchanges on Wednesday that the orders were awarded in the ordinary course of business and span multiple defence and government projects. The ₹134 crore contract underscores high trust in indigenized defence electronics and represents a significant scale progression for the company, moving beyond standard small-ticket orders of ₹10-30 crore. Separately, its step-down subsidiary IDL Explosives Ltd has secured work orders worth ₹55.22 crore, which will be executed over the next two years. The latest order win adds directly to a robust order book that stood at ₹1,432 crore as of March 31, 2026, up from ₹1,305 crore on December 31, 2025.
The latest order win comes just days after Apollo Micro Systems announced one of its biggest strategic moves to date. On July 9, 2026, the company signed a share purchase agreement to acquire a 41.33% stake in Premier Explosives Ltd from the promoter group for ₹1,550 crore in an all-cash transaction. As reported by CNBC TV18, the acquisition, involving the purchase of 2.22 crore equity shares, will give Apollo Micro Systems control of Premier Explosives and significantly strengthen its presence in the explosives and defence manufacturing value chain. The company is consolidating capabilities across hardware, electronics, and energetic materials, evolving from a secondary subsystems provider to a major weapons system partner under India's 'Atmanirbhar Bharat' policy.
The acquisition will be funded through cash consideration, with the open offer price fixed at ₹698 per share in accordance with SEBI's takeover regulations. Additionally, on July 6, 2026, the board approved raising ₹3,322.23 crore via preferential issues of equity shares and convertible warrants to fund acquisitions, repay debt, and secure working capital. According to the company's exchange filing, the transaction aligns with its ambition of building an integrated, end-to-end indigenous defence manufacturing ecosystem. Managing Director Baddam Karunakar Reddy stated that the acquisition would strengthen India's defence manufacturing capabilities and deepen the company's expertise in energetic materials and space programmes.
The company has demonstrated exceptional financial growth in FY26, with consolidated revenue growing 60.9% to ₹904.32 crore compared to ₹562.07 crore in FY25. As reported by CNBC TV18, consolidated profit after tax increased 90.5% to ₹107.38 crore in FY26 from ₹56.36 crore in FY25. The strong execution of the new ₹134 crore order is expected to keep operating margins healthy, sustaining the company's historical profit trajectory. The robust order book of ₹1,432 crore provides strong revenue visibility, while the planned capital raise of ₹3,322.23 crore through preferential issues will fund strategic integration and support the company's expansion into integrated defence systems.
The market has reacted favorably to Apollo Micro Systems' strategic developments, with defense electronics remaining a highly active capital-attracting segment on domestic stock exchanges. Despite the announcement of both the order wins and the major acquisition, shares of Apollo Micro Systems pared early gains and were trading largely flat at ₹404.85 on the NSE as of 2:32 pm. The mixed market response reflects investor assessment of the company's expansion strategy and its impact on near-term financial performance, though the strong order book and planned capital raise provide positive long-term outlook for the integrated defense systems powerhouse.
