Apollo Micro Systems Ltd. (AMS) shares have extended their impressive rally, hitting an all-time high for the fourth consecutive trading session. This surge comes after the company announced a strong performance in Q4 FY26, alongside significant strategic moves including a major capacity expansion and a key acquisition in the defense sector.
Shares Reach Record Highs
On Thursday, May 21, Apollo Micro Systems shares climbed as much as 5.85% to reach an all-time high of Rs 377.60 apiece on the BSE, up from its previous close of Rs 356.70. The stock has delivered multibagger returns, soaring over 150% in the last year, with a 28% gain in just the past four sessions.
Key Triggers for the Rally
The bullish sentiment surrounding the defense electronics manufacturer is primarily driven by three factors:
- Exceptional Q4 FY26 financial results.
- A comprehensive greenfield expansion plan.
- The strategic acquisition of IDL Explosives Ltd.
Robust Q4 FY26 Earnings
Apollo Micro Systems reported a consolidated net profit of Rs 36.79 crore for Q4 FY26, marking a substantial 163.5% increase year-on-year compared to Rs 13.96 crore in the same quarter last year. Consolidated revenue from operations also saw a significant jump of 81.3%, reaching Rs 293.26 crore in Q4 FY26, up from Rs 161.77 crore in Q4 FY25.
For the full financial year (FY26), the company's net profit stood at Rs 107.38 crore, reflecting a 90.5% growth year-on-year. Revenue for FY26 zoomed by nearly 61% to Rs 904.32 crore.
Ambitious Greenfield Expansion
The company is actively pursuing a greenfield expansion project designed to scale its operational capacity by 12 times. This ambitious project involves a total investment of Rs 300 crore and includes acquiring approximately 247,441 sq ft of land adjacent to its Unit 3 at the Industrial Park, TSIIC Hardware Park, Phase 2, Hyderabad.
This new facility is planned to support the manufacturing, assembly, integration, and testing of a diverse range of weapon systems, including Grad rockets, anti-submarine warfare rockets, anti-tank mines, and artillery munitions.
Strategic Acquisition of IDL Explosives Ltd.
Apollo Defence Industries Pvt Ltd, a subsidiary of AMS, successfully acquired a 100% equity stake in IDL Explosives Ltd for Rs 107 crore. This acquisition marks Apollo Micro Systems' entry into the military explosives manufacturing sector.
Notably, IDL Explosives Ltd had previously secured a running contract for the supply of bulk explosives to Coal India Ltd subsidiaries, amounting to Rs 419.39 crore, following the lifting of a prior ban. This buyout significantly strengthens Apollo's position in the defense supply chain.