Apollo Micro Systems Shares Propel 17% On Rs 25 Crore Order from DRDO, Defence PSUs

Shares of Apollo Micro Systems flew 17% higher and hit an all-time high of ₹ 239.40 on August 22 as investors rallied behind the counter after the company bagged orders worth Rs 25.1 crore.

Riding high on the recent order wins, volumes in the counter surged. As much as five crore shares of the defence company changed hands on the exchanges thus far, already much higher than the monthly traded average of 65 lakh shares.

Meanwhile, the stock has been a steady growth multiplier in recent times, with twofold returns year-to-date.

While details on the scope and execution timeline of the contracts were not disclosed, the announcement has reinforced investor optimism amid expectations of higher government orders and rising opportunities in global defence exports.

In the June quarter, Apollo Micro Systems posted a 46% jump in revenue to ₹133.5 crore, against ₹91.2 crore a year earlier. Net profit more than doubled to ₹17.6 crore, marking its strongest first-quarter performance. The company attributed the results to robust order execution and the smooth scaling up of several high-value systems into production.

Looking ahead, management has guided for revenue growth at a 45–50% compounded annual growth rate (CAGR) over the next two years, driven entirely by its core business, excluding contributions from recent acquisitions.

In May, Apollo Micro Systems acquired IDL Explosives for ₹107 crore in an all-cash deal. IDL, a subsidiary of GOCL Corp, supplies packaged and bulk explosives for mining and infrastructure projects and reported revenues of ₹623 crore in FY24.

In the same month, the company had bagged  an export order worth ₹113.81 crore for the development of an avionic system intended for use in civil and military aircraft applications.