Apollo Micro Systems, a prominent player in the defence sector, has seen its stock deliver exceptional returns, surging over 3,400% in the past five years. As of May 20, 2026, domestic brokerage firms are maintaining a highly positive outlook on the company, anticipating further upward movement in its shares following a robust financial performance in the March 2026 quarter and the full fiscal year.
Remarkable Stock Performance
The company's shares recently soared more than 8.4% to Rs 369.30, hitting fresh all-time highs and pushing its market capitalization past the Rs 13,000 crore mark. In the last year alone, Apollo Micro Systems stock has returned 175% to investors, with a gain of nearly 35% in 2026 so far. The long-term picture is even more dramatic: the stock has zoomed over 82 times from its COVID-19 lows of Rs 4.5 per share in late March 2020. Over a five-year period, from levels around Rs 10.5 in August 2021, the stock has delivered an impressive 3,415% return. Its three-year performance also stands strong, with a nearly 1,100% surge from Rs 31.5 levels.
Strong Q4 and FY26 Financial Results
Apollo Micro Systems reported a stellar financial performance for the March 31, 2026, quarter. Net profit surged by 168.7% year-on-year (YoY) to Rs 37.62 crore, while revenue increased by 81.3% YoY, reaching Rs 293.26 crore. EBITDA saw an 88% YoY rise to Rs 67.64 crore, with margins improving to 23.1% for the quarter.
For the entire fiscal year 2025-26, the company's net profit more than doubled to Rs 112.92 crore, and revenue climbed 60.9% to Rs 904.32 crore. This exceptional financial execution is attributed to sustained demand for indigenous defence electronics, satellite systems, and missile programs.
Analyst Outlook and Target Prices
Brokerage firms are highly optimistic about Apollo Micro Systems' future trajectory:
HDFC Securities' View
HDFC Securities highlighted Apollo Micro Systems' stellar FY26 performance, marked by 61% YoY revenue growth and 91% PAT growth. This was driven by faster order execution and EBITDA margin expansion to 24% in FY26, aided by a favorable product mix and controlled input costs.
The firm projects a 50% revenue Compound Annual Growth Rate (CAGR) from FY26 to FY28E, supported by an existing order book of Rs 1,430 crore, a robust weapon pipeline, and new manufacturing licenses, including arms of calibre above 12.7mm. Major orders for MIGM (Rs 2,000 crore) and QRSAM are key monitorables. Given these growth levers, HDFC Securities has increased its PAT CAGR forecast to 62% over FY26-FY28E (from an earlier 48%) and maintains a 'buy' rating, raising the target price to Rs 400 based on a 50x multiple for FY28E EPS.
Choice Institutional Equities' Perspective
Choice Institutional Equities noted Apollo's strong results, exceeding expectations, and its consistent execution. The management's strategic shift towards system-level integration and backward integration is expected to bolster margins in the medium term by gaining better control over the value chain.
The firm maintains a positive stance, citing Apollo's evolution from a component supplier to a full-fledged system integrator, its expanding role, robust order pipeline, and clear margin trajectory. Choice Institutional Equities revised its FY27E and FY28E EPS estimates upwards by 27.5% and 19.5% respectively, assigning an 'add' tag with a target price of Rs 365.
The consensus among analysts suggests that Apollo Micro Systems is well-positioned for continued growth, driven by its strategic initiatives and strong market demand within the defence sector.
Disclaimer: This article provides market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.