Apollo Micro Systems Limited (AMS), a key player in India's defense technology sector, has reported its highest-ever quarterly revenue of ₹225.00 crores in Q2, marking a significant 69% quarter-on-quarter increase. The company's performance underscores its growing prominence in the indigenous defense manufacturing ecosystem.

Financial Highlights

• Q2 Performance:

  • Revenue: ₹225.00 crores (69% QoQ growth)
  • EBITDA: ₹59.00 crores
  • PAT: ₹30.00 crores (70% QoQ increase)

• H1 Performance:

  • Revenue: ₹359.00 crores (42% growth compared to H2 of previous year)
  • EBITDA: ₹100.00 crores
  • PAT: ₹48.00 crores (97% YoY increase)

Strategic Developments

1. Acquisition of Ideal Explosives Limited (IDL): AMS has completed the acquisition of IDL for ₹107.00 crores, marking a significant step in both backward and forward integration.

2. Capacity Expansion: The company's Unit 3 Phase 1 is nearing completion, with partial production already underway. Full-fledged operations are expected to commence by the end of the current financial year or early Q1 next fiscal year.

3. Order Book: AMS maintains a robust order book of approximately ₹800.00 crores, supporting its growth trajectory.

4. Future Growth Projections: Management anticipates a 45-50% CAGR over the next two fiscal years, driven by the core business, excluding contributions from recent acquisitions.

Technological Advancements

AMS has evolved from a subsystem and systems manufacturer to establishing itself as a full-fledged weapons manufacturer. The company has a presence in various critical defense programs:

• Participation in every indigenous missile program of DRDO
• Development of anti-submarine warfare rockets
• Advancements in underwater mine projects
• Progress in ground-to-air rockets and guided rockets
• Development of miniaturized diver-carrying mines and anti-tank mines

Outlook and Challenges

While AMS shows strong growth potential, the company faces challenges in talent acquisition and retention in the specialized defense technology sector. The management emphasizes a retention-focused approach and complements its workforce with retired experts from DRDO and defense PSUs.

The company is actively pursuing opportunities in large-scale defense projects, including potential orders from programs like MIGM, QRSAM, and various naval initiatives. However, the timelines for these orders remain subject to government approval processes.

Management Commentary

Baddam Karunakar Reddy, Managing Director of Apollo Micro Systems, stated, "We have delivered our highest ever quarterly revenue and PAT marked by consistent execution, operational discipline and a strong commitment to indigenization and the Make in India initiative."

He further added, "Building on 40 years of technological excellence, we are poised to evolve into a multidisciplinary defense system powerhouse to drive next-generation innovation."

As Apollo Micro Systems continues to strengthen its position in India's defense technology landscape, investors and industry observers will be keenly watching its execution of the ambitious growth plans and its role in enhancing the country's defense capabilities.

Apollo Micro Systems Limited , a key player in the defense and aerospace sector, has announced significant corporate actions requiring shareholder approval through a postal ballot. The company is seeking consent for two major resolutions that could substantially impact its financial operations and relationships with subsidiaries.

Material Related Party Transactions

The first resolution proposes material related party transactions totaling ₹1,500 crores for the financial year 2025-26. These transactions are to be conducted with three entities:

These transactions, which include the sale and purchase of goods, services, property leasing, and other related activities, represent 88.95% of Apollo Micro Systems' audited consolidated annual turnover of ₹562.06 crores for the financial year 2024-25.

Loan and Guarantee Facility

The second resolution seeks approval for providing loans, guarantees, or securities up to ₹700 crores to IDL Explosives Limited, a probable step-down subsidiary. This facility is proposed under Section 185 of the Companies Act, 2013, allowing financial assistance for business requirements and capital expenditures.

Voting Process and Timeline

The company has initiated an e-voting process for these resolutions:

• E-voting Start Date: November 8, 2025
• E-voting End Date: December 6, 2025
• Results Announcement: On or before December 8, 2025

Recent Business Updates

In addition to these corporate actions, Apollo Micro Systems has reported new orders worth ₹340.96 crores:

These orders, received in the ordinary course of business, underscore the company's strong position in the defense and aerospace sectors.

The proposed resolutions and recent orders highlight Apollo Micro Systems' strategic moves to strengthen its financial position and expand its operations within the group companies. Shareholders will play a crucial role in determining the outcome of these significant corporate decisions.