Apollo Micro Systems to Invest ₹300 Crore in New Defence Manufacturing Facility in Hyderabad

Apollo Micro Systems has announced a significant investment of ₹300 crore to establish a new electronics and electro-mechanical manufacturing facility in Hyderabad. This strategic expansion will focus on the manufacturing and testing of various weapon systems, positioning the company to strengthen its presence in India's defence manufacturing sector.

Investment Overview

The substantial investment demonstrates Apollo Micro Systems' commitment to expanding its defence manufacturing capabilities. The following table outlines the key parameters of this investment:

Parameter:	Details
Investment Amount:	₹300 crore
Facility Type:	Electronics and Electro-mechanical Factory
Location:	Hyderabad
Primary Focus:	Weapon Systems Manufacturing and Testing

Manufacturing Capabilities

The new facility will serve as a comprehensive manufacturing and testing hub for weapon systems. The electronics and electro-mechanical factory will enhance Apollo Micro Systems' production capacity and technological capabilities in the defence sector. This expansion aligns with the company's strategy to strengthen its position in India's growing defence manufacturing ecosystem.

Strategic Significance

The establishment of this facility in Hyderabad represents a major step forward for Apollo Micro Systems in the defence manufacturing space. The investment will enable the company to:

Expand manufacturing capacity for weapon systems
Enhance testing capabilities for defence products
Strengthen operational presence in the strategic defence sector
Contribute to India's defence production capabilities

This investment underscores Apollo Micro Systems' commitment to supporting India's defence manufacturing objectives while expanding its own operational footprint in the sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.64%	-2.76%	+4.70%	+33.42%	+87.12%	+1,683.53%

Apollo Micro Systems shares gained nearly 2.5% in Friday's trading session following the company's receipt of trading approval from both BSE and NSE for preferential shares issued to promoters and non-promoters. The defence stock opened lower in early morning trading but recovered losses to touch an intraday high of ₹259.00 per share.

Trading Approval Details

According to the exchange filing, the defence company received trading approval for the following preferential issue:

Parameter	Details
Total Shares Approved	1,21,47,964 equity shares
Face Value	₹1.00 each
Issue Basis	Preferential allotment
Trading Symbol	APOLLO (both exchanges)
Distinctive Numbers	342,243,737 to 354,391,700
Trading Effective Date	January 9, 2026

Lock-in Requirements

In compliance with SEBI regulations on preferential issues, the allotted shares are subject to specific lock-in periods:

1,06,86,200 equity shares: Locked until July 9, 2027
14,61,764 equity shares: Locked until July 9, 2026

Strong Financial Performance

For Q2 FY26, Apollo Micro Systems delivered robust financial results driven by strong order book execution:

Financial Metric	Q2 FY26	Q2 FY25	Growth (%)
Net Profit	₹31.11 crore	₹15.70 crore	+98.15%
Revenue	₹225.30 crore	₹160.70 crore	+40.20%
EBITDA	₹59.59 crore	-	+82.70%
EBITDA Margin	26.45%	20.29%	+616 bps

The company's operational performance was supported by smooth ramp-up of several high-value systems into production, contributing to the significant margin expansion.

Share Price Performance

Despite market volatility, Apollo Micro Systems has maintained strong momentum across different time horizons:

One month: +5.27%
Six months: +34.00%
Five years: +1,845.00%

The stock established a 52-week high of ₹354.65 on September 17, 2025, and a 52-week low of ₹101.05 on April 7, 2025, demonstrating significant price appreciation over the period.