Apollo Micro Systems Limited

Apollo Micro Systems reported its highest ever quarterly and 12-month revenue in FY26. Consolidated revenue for FY26 stood at ₹904 crores, a 61% year-on-year growth from ₹562 crores in FY25. EBITDA (excluding other income) grew by 69% to ₹218 crores, and PAT increased by 91% to ₹107 crores. Margins also saw significant expansion, with EBITDA margin improving by 114 basis points to 24% and PAT margin by 185 basis points to 12% in FY26. Q4 FY26 alone saw revenue surge 81% YoY to ₹293 crores, with EBITDA growing 88% and PAT an exceptional 164% YoY to ₹37 crores.

The company unveiled a glimpse of its Vision 2036, aiming to become a global OEM in defense platforms across land, air, and sea domains. This vision is supported by four pillars: becoming a global OEM, diversifying revenue streams, deepening presence in Indian and global markets, and driving conviction-led innovation. Apollo Micro Systems made its highest R&D investment in FY26, spending ₹72 crores (8% of revenue) on developing advanced solutions like Mini Torpedoes, fiber optic gyro-based INS systems, and sensor suits for autonomous vehicles. The company also reported zero attrition in its R&D team.

As of March 31, 2026, the consolidated order book stood at ₹1,432 crores, providing strong visibility for future growth. Management anticipates significant new large ticket orders in the current financial year, which will further increase the order book size. The company expects to continue growing at a similar or accelerated pace in the coming years, driven by robust execution and the expanding order book. While some orders will be executed this financial year, others will spill over to the next.

Apollo Micro Systems completed the 100% acquisition of IDL Explosives, which reported revenues of approximately ₹380 crores last year. While IDL was loss-making in previous years, it is currently undergoing a significant transformation phase. Management expects substantial improvements in its operational performance and plans to provide specific revenue and margin guidance for IDL from Q3 onwards. This acquisition is strategic, aiming to support the company's expansion into ammunition and artillery, leveraging global demand driven by conflicts and unoperational plants worldwide.

Progress on Unit 3 expansion is underway, with civil work for phase one completed and phase two ongoing. Machinery has been received, and the company plans to shift operations from Unit 1 to Unit 3 phase-wise. This expansion, along with bringing in-house previously outsourced test facilities, is expected to improve operational efficiency and reduce working capital holding periods. The working capital cycle has already seen a significant improvement, reducing from 626 days in FY21 to 359 days in FY26.

The standalone organic revenue growth for FY26 was 36%, falling short of the internal guidance of 45-50%. This miss was attributed to delays in obtaining necessary approvals for certain projects from customers, which prevented their execution in the last quarter of FY26. Management clarified that these are timing-based issues and expressed confidence in bouncing back and maintaining similar momentum in the future.