Apollo Micro Systems has been officially declared as the lowest bidder for defence orders worth Rs 257.89 million from a Defence Public Sector Undertaking. The company announced this development through a regulatory filing, confirming the order comes with an execution timeline of 18 months and represents another significant addition to its growing defence portfolio.

Official Defence Contract Confirmation

The company formally notified exchanges about being declared the lowest bidder by a Defence Public Sector Undertaking for orders valued at Rs 257.89 million. This official confirmation solidifies the contract award and provides clarity on the execution framework for shareholders and stakeholders.

Strong Order Momentum Continues

This latest defence contract builds upon Apollo Micro Systems' exceptional order wins in recent days. The company has secured orders worth Rs 570.89 crores across two days in early January, demonstrating sustained business momentum. On January 1, the company's subsidiary secured a fresh order worth Rs 150.00 crores from a private player, following substantial orders worth Rs 420.89 crores announced on December 31.

IDL Explosives Major Contribution

IDL Explosives Limited, a step-down subsidiary of Apollo Micro Systems, secured a running contract for bulk explosives supply to subsidiaries of Coal India Limited worth Rs 419.39 crores. Additionally, the subsidiary received an export order worth Rs 1.50 crores for cartridge explosives supply, expanding the company's international presence and diversifying revenue streams.

Strategic Defence Manufacturing Expansion

The company announced a strategic greenfield expansion in Telangana to scale up defence manufacturing capabilities. The expansion involves setting up new facilities for missile warheads, rocket motors, and artillery systems production, positioning Apollo Micro Systems for larger defence contracts and enhanced manufacturing capacity.

The stock has delivered exceptional returns, rising 125% in the current year and an impressive 2,100% over five years, reflecting strong positioning in India's growing defence manufacturing ecosystem and consistent ability to secure substantial contracts across multiple segments.

Apollo Micro Systems shares surged 5% to reach the day's high of ₹272.50 on Wednesday, December 31, following the announcement of fresh orders worth ₹420.89 crores. The defence-focused company's stock performance brought it close to its upper circuit limit of ₹272.70, reflecting strong investor confidence in the latest contract wins.

Major Contract Portfolio from Coal India

The company's step-down subsidiary IDL Explosives Limited has secured significant contracts through a regulatory filing under Regulation 30. The primary contract involves a running agreement for supplying bulk explosives to subsidiaries of Coal India Limited, valued at ₹419.39 crores. Additionally, IDL Explosives received an export order worth ₹1.50 crores for cartridge explosives supply.

Recent Order Momentum

The latest contract win follows another significant announcement made last week on December 26, when Apollo Micro Systems disclosed securing an order worth ₹100.25 crores from a private company for Unmanned Aerial Systems supply, with the Ministry of Defence as the end user. This demonstrates the company's consistent ability to secure substantial orders across different defence segments.

Strategic Manufacturing Expansion

Earlier this month, the company announced a strategic greenfield expansion in Telangana aimed at scaling up its defence manufacturing capabilities. The expansion involves setting up new manufacturing facilities for missile warheads, rocket motors, and artillery systems production. This project represents one of the largest expansions undertaken by the company to enhance its capacity for both domestic and international markets.

Strong Stock Performance

Apollo Micro Systems has emerged as a multibagger performer in the small-cap defence segment, delivering exceptional returns of 125% on a year-to-date basis and an impressive 2,100% over the past five years. The company's consistent order wins and strategic expansions have contributed to sustained investor interest in this aerospace and defence sector player.