Shares of Apollo Micro Systems Ltd have experienced a remarkable rally, climbing approximately 36% over the last six trading sessions. The defence sector stock reached a new record high of Rs 400, pushing its market capitalization close to the Rs 14,300 crore mark.
This impressive performance on Dalal Street is primarily attributed to the company's strong financial results for the March 2026 quarter, a robust order book, and the Indian government's intensified focus on indigenous defence manufacturing and expansion plans.
Stellar Financial Performance Drives Optimism
For the quarter ending March 31, 2026, Apollo Micro Systems reported a net profit of Rs 37.62 crore, marking a substantial 168.7% increase year-on-year (YoY). Revenue for the same period rose 81.3% YoY to Rs 293.26 crore. The company's EBITDA also saw an 88% YoY growth, reaching Rs 67.64 crore, with margins improving to 23.1%.
The full financial year 2025-26 also demonstrated strong growth, with net profit more than doubling to Rs 112.92 crore and revenue soaring 60.9% to Rs 904.32 crore. This exceptional financial execution is bolstered by sustained demand for indigenous defence electronics, satellite systems, and missile programs.
Embracing 'Swavalamban' in Defence Manufacturing
Baddam Karunakar Reddy, Chairman and Managing Director at Apollo Micro Systems, highlighted FY 2025-26 as a transformative year for the company. In his letter to shareholders, titled 'Swavalamban' (self-reliance), Reddy emphasized the company's long-held vision of supporting India's defence self-reliance taking shape at scale.
Reddy stated that after more than four decades, the company made a pivotal choice in FY 2025-26: to transition from being merely a Tier-1 supplier of mission-critical electronics to an original equipment manufacturer (OEM). This strategic shift involves taking ownership of platforms, intellectual property, and customer relationships, aligning with the Defence Ministry's push for indigenization and a changing strategic landscape.
Meeting Brokerage Targets
The recent rally has seen Apollo Micro Systems' stock price meet or exceed several brokerage firms' target prices. Choice Institutional Equities had set a target of Rs 365 with an 'add' rating, which was achieved post-Q4 results. Similarly, HDFC Securities had a 'buy' rating with a target price of Rs 400, which the stock reached recently.
Disclaimer: This article provides stock 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.