Apollo Micro Systems Shares Gain 15% on DRDO Order Win

On Friday, the Apollo Micro Systems shares was up by 15.18 percent has recorded a significant order win after emerged as the lowest bidder for defence contracts worth Rs 25.12 crore from the Defence Research and Development Organisation (DRDO) and other defence public sector undertakings. This achievement not only highlights the company’s growing stature within India’s defence ecosystem but also reflects its technical competency and execution capabilities. Details regarding the nature of these contracts and the timeline for their completion have not been disclosed by the company in the official communication, yet the order win is expected to bolster its visibility and revenues in the upcoming quarters, especially amidst the Indian government’s increased defence spending and push for indigenous solutions.

The order win comes on the back of Apollo Micro Systems’ robust Q1FY26 financial performance, marking the strongest-ever first quarter for the company. Apollo posted a revenue of Rs 133.6 crore for Q1FY26, which marks a 46.47 percent year-on-year growth when compared to Rs 91.2 crore in the same period last year. Profit after tax more than doubled to Rs 17.7 crore, up from Rs 8.4 crore, translating to a 109 percent year-on-year increase. 

The company's EBITDA surged by 83 percent to Rs 40.9 crore, with EBITDA margins expanding by around 600 basis points to nearly 31 percent, up from 25 percent a year ago. PAT margins have similarly expanded by 400 basis points, reaching 13 percent in Q1FY26, compared to 9 percent in Q1FY25. This leap in profitability signals a combination of robust order execution, high-value system transitions, and improved cost control measures implemented by management.

Earnings per share rose to Rs 0.55 from Rs 0.28 in the previous year’s comparable quarter, further reflecting the robust operational performance. These results underscore Apollo Micro Systems’ ability to consistently deliver strong results while demonstrating resilience amid an expanding order book and diverse project pipeline.

A notable strategic development during the quarter was Apollo Micro Systems acquisition of IDL Explosives Ltd. This acquisition positions the company as a fully integrated Tier-1 defence OEM, widening its capabilities beyond electronics manufacturing into explosives for mining and infrastructure, and aligning with the government’s vision for self-reliance in defence manufacturing. 

Management maintains a highly optimistic outlook for the future, underlining the momentum achieved in Q1FY26 as a key reflection of Apollo Micro Systems’ strategic focus and operational excellence. The integration of new capabilities post-acquisition and ongoing government importance on defence indigenization are catalyzing Apollo Micro Systems’ trajectory toward becoming a preferred partner for both Indian and global defence forces.

Market participants have taken note of these developments, with Apollo Micro Systems share price surging on news of the order win, and the stock delivering over 119 percent returns in the year thus far.