Shares of Apollo Micro Systems surged by 5% to reach a new 52-week high of Rs 433.80 on the NSE during Wednesday morning trading. The stock has seen a remarkable rise of over 44% in the past month and 178% over the past year, driven by strong financial results and strategic acquisitions.
Apollo Micro Systems recently reported a 163% year-on-year increase in consolidated net profit for Q4 FY26, amounting to Rs 36.8 crore, compared to Rs 14 crore in the same quarter of the previous year. The company's revenue from operations also jumped 81% year-on-year to Rs 293.3 crore for the quarter. For the full financial year ending March 31, 2026, net profit surged 90% year-on-year to Rs 107.4 crore, with revenue from operations rising 61% to Rs 940.3 crore.
The company's Managing Director, Baddam Karunakar Reddy, described FY26 as a 'breakthrough year,' highlighting the successful acquisition of IDL Explosives through ADIPL, the receipt of a DPIIT licence for UAV manufacturing, and securing its first export order. Reddy also indicated that another acquisition through ADIPL is expected before the end of the next financial year.
“FY26 was a breakthrough year for us, driven by record revenue and profitability.”
Baddam Karunakar Reddy, Managing Director, Apollo Micro Systems
HDFC Securities has maintained its 'Buy' rating on Apollo Micro Systems, raising its target price to Rs 400, which the stock has surpassed. The brokerage anticipates a 50% revenue CAGR between FY26 and FY28, supported by a robust order book of Rs 1,430 crore and new manufacturing licences. HDFC Securities also projects a 62% PAT CAGR over the same period.
Despite the stock's impressive rally, Apollo Micro Systems shares are currently trading with a P/E ratio of over 137x, and the company has a market capitalisation of nearly Rs 15,500 crore.
Background
Apollo Micro Systems' recent performance underscores its strategic growth initiatives and robust financial health. The company's expansion into new markets and product lines positions it well for future growth, making it a stock to watch closely in the defence sector.
Apollo Micro Systems' recent performance underscores its strategic growth initiatives and robust financial health. The company's expansion into new markets and product lines positions it well for future growth, making it a stock to watch closely in the defence sector.
