Apollo Micro Systems Limited delivered its strongest first-quarter performance in company history for Q1FY27, with consolidated revenue from operations surging 88% year-on-year to ₹251.3 crore. The Hyderabad-based defence electronics manufacturer reported a 43% jump in consolidated net profit after tax (PAT) to ₹25.2 crore. Alongside these financial results, the company announced a definitive share purchase agreement to acquire 41.33% promoter shares of Premier Explosives Ltd for approximately ₹1,550 crore in an all-cash deal, marking a significant expansion into the explosives sector.

The Board of Directors approved the unaudited financial results on August 8, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, S.T. Mohite & Co., in accordance with Regulation 33. In compliance with Regulation 47 of the SEBI (LODR) Regulations, 2015, extracts of the standalone and consolidated unaudited financial results were published in Business Standard (English) and Nava Telangana (Telugu) on August 10, 2026. Despite an 11% expansion in the equity base due to the conversion of share warrants, earnings per share (EPS) improved, reflecting accretive, earnings-led growth that outpaced dilution.

Financial Performance Highlights

The quarter marked a significant acceleration in both top-line and bottom-line metrics compared to Q1FY26. Consolidated revenue more than doubled from ₹133.6 crore in Q1FY26 to ₹251.3 crore in Q1FY27. Standalone revenue also grew robustly, rising 17% year-on-year to ₹156 crore from ₹134 crore. On the operating front, consolidated EBITDA (excluding other income) increased 31% to ₹53.7 crore, while standalone EBITDA rose 18% to ₹48 crore.

Profitability metrics remained strong, with consolidated PAT growing from ₹17.7 crore in Q1FY26 to ₹25.2 crore in Q1FY27. Standalone PAT saw a sharper increase, jumping 43% to ₹28 crore from ₹19 crore in the corresponding period last year. The table below summarises the key financial metrics:

The weighted average number of equity shares outstanding increased from 33,35,32,454 as of June 30, 2025, to 37,15,99,512 as of June 30, 2026, following the conversion of outstanding share warrants. This 11% increase in the equity base did not hinder per-share profitability, which improved across both standalone and consolidated bases.

Strategic Growth and Order Book Visibility

Apollo Micro Systems is reinforcing its position as a "Pure Play Defence" company, aiming to transition from a Tier-1 supplier to a recognized Global Original Equipment Manufacturer (OEM). The company’s strategy focuses on diversifying revenue across land, air, and sea domains to mitigate dependency on any single platform or customer. A key milestone in this journey is the Prototype Sanction Order (PSO) secured from the Indian Navy for the development of SAVIOR-ASW, a Semi-Submersible Autonomous Vessel for Intelligence, Operations, and Reconnaissance.

Additionally, the company has been empanelled by the Indian Air Force (IAF) as a Prime Development Agency (DA) for the Indigenous Precision Range Extension Kit (IPREK) programme under the Make-II category of India's Defence Acquisition Procedure 2020 (DAP-2020). The Indian Air Force has also sanctioned a Make-II prototype order for a 500 Kg Smart Bomb in July 2026, establishing Apollo as a Prime OEM in the Precision Guided Munition segment. The formal handing over of the indigenously designed Safety & Detonation Device (SDD) to the Indian Navy further underscores its execution capabilities.

The all-time high order book of ₹1,704 crore provides substantial visibility for future quarters. Management emphasized that performance in the defence industry is best assessed on a year-on-year basis due to extended procurement cycles and milestone-linked execution, which can result in uneven quarterly revenue recognition. However, the consistent growth trajectory suggests strong underlying business momentum.

What the Numbers Show

The divergence between standalone and consolidated margins offers insight into the company’s evolving structure. While standalone operations maintained healthy profitability, the consolidated EBITDA margin contracted to 21.4% from 30.6% in Q1FY26. This compression is largely attributable to the inclusion of IDL Explosives Limited, which contributes significantly to top-line growth but operates with different margin dynamics compared to the core electronics business. The surge in consolidated revenue to ₹251.3 crore, more than double the previous year’s figure, highlights the accretive nature of the acquisition. Furthermore, the record order book suggests that the current revenue surge is not an isolated event but part of a sustained execution cycle supported by strong demand in the defence sector.

Apollo Micro Systems has reaffirmed its revenue growth guidance of 40% to 45% for FY27, applicable on both a consolidated and standalone basis. Notably, the company has clarified that export prospects have been excluded from this revenue outlook. Guidance for FY28 is expected to be provided only at the conclusion of FY27.

Order Book Outlook

The company anticipates a significant expansion in its consolidated order book, projecting it to reach between INR 3,500 crores and INR 4,000 crores by year-end, supported by the addition of new large orders. The table below summarises the key guidance parameters shared by the company:

Apollo and Premier Integration Plans

On the corporate development front, Apollo Micro Systems has indicated that Apollo and Premier will continue to operate as separate entities for the time being. Detailed plans for their future integration are expected to be disclosed within two to three months after the acquisition is finalised. The company has not provided further specifics on the integration structure at this stage.

Key Highlights

• Revenue growth guidance of 40% to 45% confirmed for FY27 on both consolidated and standalone basis
• Export prospects excluded from the current revenue outlook
• Consolidated order book expected to reach INR 3,500 to INR 4,000 crores by year-end on the back of new large orders
• FY28 guidance to be issued at the end of FY27
• Apollo and Premier to operate separately until integration plans are revealed within two to three months post-acquisition finalisation