Apollo Micro Systems Ltd. (APOLLO) AI Stock Analysis

• Market Cap: ₹92.44B
• Dividend Yield: 0.09%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 100.6
• Beta (1Y): 1.58
• Revenue Growth: 39.76%
• EPS Growth: 55.23%
• Country: IN
• Employees: 358
• Sector: Technology
• Sector Strength: 88
• Industry: Aerospace & Defense
• EPS (TTM): 0.93
• Shares Outstanding: 354,391,700
• 10 Day Avg. Volume: 522,593
• 30 Day Avg. Volume: 1,192,422
• PEG Ratio: 1.29
• Price to Book (P/B): 5.98
• Price to Sales (P/S): 6.46
• P/FCF Ratio: -42.69
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ₹252.00 ▼(-7.34% Downside)

Apollo Micro Systems Ltd. shows strong financial performance with robust revenue growth and improving profitability. However, the technical analysis indicates bearish momentum, and the high P/E ratio suggests the stock is overvalued, which could limit potential gains. The lack of earnings call and corporate events data means these factors did not influence the score.

Positive Factors

Mission-critical product focus

Serving defence, aerospace and safety-critical end markets creates durable demand and high switching costs. Certification, long qualification cycles and tailored engineering deepen customer relationships, supporting repeat production orders and after‑sales services over multi-year program lifecycles.

Strong multi-year revenue growth

Sustained near-40% revenue growth over the recent period indicates successful conversion of development work into production and scaling of business lines. This trend supports durable top-line momentum if the company maintains program wins and converts bespoke projects into series orders.

Improving margins and profitability

Rising gross and net margins reflect operational efficiency and better pricing or product mix, enhancing sustainable earnings power. Higher EBIT/EBITDA margins suggest the business can scale profitability as revenues grow, improving resilience across program cycles.

Negative Factors

Negative free cash flow

Persistent negative free cash flow driven by high capex can force reliance on external financing or equity to fund growth and working capital. Over months, this pressure could constrain investment flexibility, raise financing costs, and amplify risk if production ramps or program timing shifts.

Exposure to large customers and long tender cycles

Dependence on institutional tenders creates revenue lumpiness and long sales conversion timelines, delaying cash realization and making revenue contingent on contract wins. This structurally lengthens working capital cycles and increases execution risk if a program isn’t converted to series production.

Rising debt and slightly lower equity ratio

An upward debt trend and declining equity ratio reduce financial headroom. Even if currently manageable, rising leverage increases interest exposure and limits flexibility to fund capex or absorb program delays, elevating refinancing and covenant risks over the medium term.

Apollo Micro Systems Ltd. Business Overview & Revenue Model

Company Description

Apollo Micro Systems Limited designs, develops, assembles, and tests electronic and electro-mechanical solutions in India. The company provides DSP products, missile hardware simulators, integrated avionics modules, generic PCM encoders and decoders, DSSS de-modulators, seeker electronics, RPF and signal processing systems, turret control and power units, missile interface units, launcher controllers, launcher interface units, tiger sharc DSP-signal processors, quad actuator controllers, fault tolerant and system relay boxes, and DSP controllers. It offers ESM-eagle kit, embedded arss, PSU, and auxiliary controllers; and integrated payload checkout systems, satellite data simulators, high speed frame synchronizers, time code readers/generators, bit synchronizers, monopulse tracking receivers, PCIE-HSDR systems, PCM-two channel decommutators, PCIe based two channel data acquisition cards, and PCI-X based two channel serial data acquisition cards. It also offers avionics solutions; public address display systems, warning systems, vehicle tracking solutions and command control solutions, mine management systems, weight-in-motion systems, tyre care products, passenger information systems, and station announcement systems; Ethernet, base band modules, converters, USB/Ethernet protocol converters, dual data bus couplers, data bus solutions, and various formulas; and solar street lighting, CCTV surveillance, vehicle tracking, boom barrier, RFID fleet management, UAV detecting and jamming, GSM interception, Wi-Fi interception, lawful interception, and portable x-ray inspection systems, as well as passenger information displays, wall radar, reactive convoy and stationary jammers, and portable and stationary bomb jammers. The company provides electronic manufacturing, hardware design, IT and software, and electronic and mechanical CAD services; and weapon, platform, and other system integration services. The company was incorporated in 1985 and is based in Hyderabad, India.

How the Company Makes Money

Apollo Micro Systems generates revenue primarily through the sale of its electronic systems and solutions to defense and aerospace organizations, including contracts with the Indian government and defense public sector undertakings. The company operates on a project-based revenue model, which allows it to earn income from long-term contracts and one-time project deliveries. Key revenue streams include defense electronics, avionics, and embedded systems, which are often customized to meet specific client requirements. Additionally, APOLLO may benefit from partnerships with other defense manufacturers or technology firms, enhancing its capabilities and expanding its market reach. Factors contributing to its earnings include government defense spending, technological advancements in the aerospace sector, and the company's ability to innovate and deliver high-quality products in a competitive environment.

Apollo Micro Systems Ltd. Financial Statement Overview

Summary

Apollo Micro Systems Ltd. demonstrates strong revenue growth and improving profitability, supported by efficient operations. Despite increased leverage, the balance sheet remains stable with growing equity. Cash flow management shows positive trends, although capital expenditures are high, impacting free cash flow. Overall, the financial health is solid with room for improvement in cash flow management.

Income Statement

Apollo Micro Systems Ltd. has demonstrated robust revenue growth, increasing from 2,431 million in 2022 to 5,649 million in 2025. The company has maintained a healthy gross profit margin, reaching approximately 22.7% in 2025. Notably, the net profit margin improved significantly, rising from 6% in 2022 to 10% in 2025, indicating improved profitability. EBIT and EBITDA margins also show healthy growth, highlighting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio indicates moderate leverage, with total debt rising but remaining manageable in relation to equity. Stockholders' equity increased, reflecting a strong equity position. However, the equity ratio slightly declined due to the increase in total assets, suggesting a more leveraged balance sheet over time. Return on equity has improved, enhancing shareholder value.

Cash Flow

Operating cash flow has improved from negative to positive, showing signs of operational efficiency. However, the free cash flow remains negative, impacted by significant capital expenditures, which could pose a risk if not managed carefully. The company has a strong operating cash flow to net income ratio, indicating effective cash generation relative to reported earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.05B	5.62B	3.72B	2.98B	2.43B	2.03B
Gross Profit	1.65B	1.28B	884.04M	666.85M	445.64M	522.37M
EBITDA	1.51B	1.32B	702.31M	616.92M	462.77M	390.30M
Net Income	664.77M	563.96M	311.19M	187.50M	146.22M	102.54M
Balance Sheet
Total Assets	0.00	12.99B	9.56B	6.93B	5.99B	5.32B
Cash, Cash Equivalents and Short-Term Investments	402.70M	624.78M	275.44M	2.49M	3.43M	1.28M
Total Debt	0.00	3.35B	2.08B	1.44B	1.16B	1.17B
Total Liabilities	-6.08B	6.92B	4.37B	3.08B	2.79B	2.26B
Stockholders Equity	6.08B	6.07B	5.19B	3.83B	3.19B	3.05B
Cash Flow
Free Cash Flow	0.00	-850.37M	-1.32B	-488.92M	205.70M	-162.31M
Operating Cash Flow	0.00	112.73M	-784.91M	-154.78M	439.99M	61.90M
Investing Cash Flow	0.00	-952.43M	-588.82M	-347.57M	-249.84M	-226.66M
Financing Cash Flow	0.00	1.24B	1.37B	509.51M	-187.99M	165.15M

Apollo Micro Systems Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 271.95
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:APOLLO, the sentiment is Positive. The current price of 271.95 is above the 20-day moving average (MA) of 244.40, above the 50-day MA of 251.21, and above the 200-day MA of 229.04, indicating a bullish trend. The MACD of -3.53 indicates Negative momentum. The RSI at 58.68 is Neutral, neither overbought nor oversold. The STOCH value of 87.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:APOLLO.

Apollo Micro Systems Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MTARTECH	69 Neutral	₹90.21B	142.14	―	―	12.06%	16.16%
CYIENTDLM	67 Neutral	₹29.83B	36.41	―	―	9.86%	21.38%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
APOLLO	59 Neutral	₹92.44B	100.57	―	0.09%	39.76%	55.23%
AVALON	59 Neutral	₹57.24B	65.01	―	―	46.80%	201.41%
AXISCADES	59 Neutral	₹52.28B	58.45	―	―	11.17%	90.62%
CENTUM	55 Neutral	₹34.20B	294.63	―	0.25%	10.29%	―

Apollo Micro Systems Ltd. Corporate Events

Apollo Micro Systems Subsidiary Wins ₹4,208.96 Million Explosives Orders

Apollo Micro Systems Limited announced that its step-down subsidiary, IDL Explosives Limited, has secured a running contract to supply bulk explosives to subsidiaries of Coal India Limited worth INR 4,193.96 million, along with an additional export order of INR 15 million for cartridge explosives. The cumulative order value of INR 4,208.96 million represents a significant business win for the explosives arm of the group, strengthening its order book, reinforcing its vendor position with Coal India’s ecosystem, and supporting revenue visibility from both domestic and export customers.

Apollo Micro Systems Wins INR 1002.47 Million Defence UAS Orders

Apollo Micro Systems Limited has secured orders worth INR 1,002.47 million from a private company for the supply of Unmanned Aerial Systems destined for the Ministry of Defence. The contracts, to be executed within four months in the normal course of business, enhance the company’s order book in defence-related unmanned systems and underscore its role as a key supplier to India’s defence ecosystem, with potential positive implications for revenue visibility and stakeholder confidence in the near term.

Apollo Micro Systems Director to Appear on ET Now’s ‘The Market’

Apollo Micro Systems Limited has notified the stock exchanges that its Whole Time Director – Operations, Addepalli Krishna Sai Kumar, will appear as a guest on ET Now’s show “The Market” on Tuesday, 23 December 2025, at 9:50 a.m. The televised interaction with anchors Ayesha Faridi and Hersh Satya will be limited to publicly available information, with the company explicitly stating that no unpublished price sensitive information will be discussed. The company also indicated that the schedule could change due to exigencies and that any revisions would be promptly communicated to the exchanges, underscoring its focus on regulatory compliance and transparent communication with analysts and institutional investors.

Apollo Micro Systems Wins DRDO Tech Transfers for Directed Energy Weapon Systems

Apollo Micro Systems has secured two technology transfer approvals from India’s Defence Research & Development Organisation in the fast-evolving field of Directed Energy Weapon systems. The grants cover a multi-channel 10 kW laser-directed energy weapon platform from DRDO’s CHESS lab in Hyderabad and an electro-optical tracking system with EO sensors for DEW from DRDO’s IRDE lab in Dehradun. These technologies will allow the company to design, manufacture and support critical DEW subsystems, bolstering its capabilities in high-energy laser engagement and precision tracking solutions and deepening its role in India’s indigenous advanced weapon systems ecosystem, in line with national defence priorities and self-reliance goals.

Apollo Micro Systems Subsidiary IDL Explosives Secures 15-Year License to Manufacture HMX and TNT

Apollo Micro Systems Limited announced that its step-down subsidiary, IDL Explosives Limited, has received an industrial license under the IDR Act, 1951, to manufacture high-energy explosives Cyclotetramethylenetetranitramine (HMX) and Trinitrotoluene (TNT) at a facility in Rourkela, Odisha, with licensed capacities of 50 MTPA for HMX and 500 MTPA for TNT for a period of 15 years. Management described the license as a strategic milestone that validates the group’s technical and operational capabilities, enhances its ability to meet internal defence-explosive needs, and opens up growth opportunities in both domestic and international markets, strengthening its positioning as a key domestic supplier in support of India’s Atmanirbhar Bharat initiative and potentially boosting its export prospects.

Apollo Micro Systems Confirms Use of Existing Investor Presentation in Upcoming Meetings

Apollo Micro Systems Ltd., a company listed on the BSE and NSE, has announced that it will use its previously published Q2FY2026 Investor Presentation for upcoming interactions with institutional investors and analysts. This move demonstrates the company’s intent to maintain transparency and provide access to relevant financial data, affirming its commitment to stakeholder engagement without introducing new materials.

Apollo Micro Systems Continues with Existing Investor Presentation for Upcoming Meet

Apollo Micro Systems Ltd. has announced that there will be no new investor presentation for the upcoming Analyst/Institutional Investor Meet. Instead, the company will use the Q2FY2025 Investor Presentation, which has already been shared with exchanges and is available on the company’s website. This decision indicates a continuation of the company’s current strategic communication approach with its stakeholders, maintaining transparency and consistency in its investor relations.

Apollo Micro Systems Reuses Q2FY2025 Investor Presentation for Upcoming Meet

Apollo Micro Systems Ltd. has announced that it will be using its previously released Q2FY2025 Investor Presentation for an upcoming Analyst/Institutional Investor Meet. The presentation has been made available on the company’s website and there will be no new presentation for this event. This decision indicates a focus on maintaining transparency and consistency with stakeholders by utilizing existing resources.

Apollo Micro Systems to Use Existing Investor Presentation for Upcoming Meet

Apollo Micro Systems Ltd. has announced that it will use its existing Q2FY2025 Investor Presentation for an upcoming Analyst/Institutional Investor Meet. The presentation, which has already been shared with exchanges and is available on the company’s website, indicates no new updates or changes. This decision reflects the company’s current strategic direction and may impact stakeholders by maintaining transparency and continuity in its communications.

Apollo Micro Systems Secures Trading Approval for New Equity Shares

Apollo Micro Systems Ltd. announced that it has received trading approval for 2,107,194 equity shares issued on a preferential basis to non-promoters. These shares are now listed and admitted for trading on both the National Stock Exchange of India and BSE, effective November 28, 2025. This move is part of the company’s strategy to raise capital through the conversion of warrants, potentially enhancing its financial flexibility and market presence.

Apollo Micro Systems Settles Compliance Violation with No Operational Impact

Apollo Micro Systems Ltd. has received a compounding order from the Regional Director (South East Region), Hyderabad, under Section 441 of the Companies Act, 2013, to settle a violation of Section 148(6) related to the non-filing of a cost audit report. The company has complied by paying the prescribed compounding fees, and the order confirms no financial or operational impact on the company.

Apollo Micro Systems Increases Capital with New Equity Share Allotment

Apollo Micro Systems Ltd. announced the allotment of 1,21,47,964 equity shares following the conversion of warrants previously issued on a preferential basis. This move, approved by the company’s Securities Allotment Committee, increases the company’s issued and paid-up capital to Rs 35,43,91,700. The newly allotted shares will hold equal standing with existing shares, potentially enhancing the company’s capital structure and market positioning.

Apollo Micro Systems Director to Feature in NDTV Profit Interview

Apollo Micro Systems Ltd. announced that Mr. Addepalli Krishna Sai Kumar, the Whole Time Director of Operations, will be participating in a TV interview on NDTV Profit’s ‘India Market Open’ on December 2, 2025. The discussion will involve publicly available information, ensuring no unpublished price-sensitive information is disclosed. This engagement highlights the company’s proactive approach in maintaining transparency and engaging with stakeholders, potentially enhancing its visibility and reputation in the market.

Apollo Micro Systems Forms Strategic Alliance for Defense Technology Development

Apollo Micro Systems Ltd. has announced a strategic tri-party alliance with IIT-Chennai and the Indian Navy to enhance indigenous defense technology development. This collaboration aims to leverage the strengths of academic research, military expertise, and industrial manufacturing to address current and future challenges faced by the armed forces, potentially strengthening the company’s position in the defense sector and benefiting stakeholders through advanced R&D initiatives.

Apollo Micro Systems Secures INR 273.69 Million in New Orders

Apollo Micro Systems Ltd. announced the receipt of significant orders totaling INR 273.69 million, with INR 57.69 million from the Defense Research and Development Organization (DRDO) and INR 216 million from a private company. This development highlights the company’s robust business operations and strengthens its position in the defense and private sectors, potentially enhancing its market credibility and stakeholder confidence.

Apollo Micro Systems Expands Capital with New Equity Allotment

Apollo Micro Systems Ltd. announced the allotment of 65,69,000 equity shares following the conversion of warrants, increasing its paid-up capital to Rs 34,22,43,736. This move, involving significant stakeholders like the promoter group and Superstar Investments, reflects strategic financial maneuvers to bolster the company’s capital structure. Additionally, the company has extended the conversion deadline for remaining warrants to June 30, 2026, showcasing flexibility in its financial strategy to accommodate market conditions and shareholder interests.

Apollo Micro Systems Expands Defence Capabilities with IDL Explosives Acquisition

Apollo Micro Systems Limited’s subsidiary, Apollo Defence Industries Private Limited, has successfully completed the acquisition of IDL Explosives Limited from GOCL Corporation Limited. This strategic acquisition marks a significant expansion in the defence explosive sector, aligning with India’s Atmanirbhar initiative, and positions Apollo Micro Systems to enhance its capabilities in high-end defence-grade explosives, propellants, and warhead systems, thus strengthening its footprint in the defence industry.

Apollo Micro Systems Completes Acquisition of IDL Explosives

Apollo Micro Systems Ltd. has announced the completion of the acquisition of IDL Explosives Limited by its subsidiary, Apollo Defence Industries Private Limited. This strategic acquisition, finalized through the transfer of shares from GOCL Corporation Limited, positions Apollo Micro Systems to enhance its capabilities in the defense sector, potentially impacting its market positioning and offering new opportunities for growth.

Apollo Micro Systems Announces Postal Ballot and E-Voting

Apollo Micro Systems Limited has announced a notice of postal ballot and e-voting, as per the regulations of the Securities and Exchange Board of India and the Companies Act. The company has published advertisements in Business Standard and Nava Telangana newspapers to inform stakeholders about the postal ballot process, which includes resolutions on material related party transactions and providing loans or guarantees. The e-voting period is set from November 8 to December 6, 2025, with results to be announced within two working days after the voting ends.

Apollo Micro Systems Reports Record Revenue and Profit Growth

Apollo Micro Systems Limited has announced its financial results for the quarter and half-year ending September 30, 2025, showcasing a significant increase in revenue and profit. The company reported a 40% year-over-year increase in revenue to ₹225 crores and a 91% rise in profit after tax to ₹30 crores, marking its highest-ever quarterly revenue and profit. This growth reflects the company’s strong market positioning and continued expansion in the electronic and engineering sectors, indicating positive implications for stakeholders.

Apollo Micro Systems Releases Q2 FY26 Investor Presentation

Apollo Micro Systems Ltd. has released its investor presentation for the quarter ending September 30, 2025, in compliance with SEBI regulations. This disclosure, available on the company’s website, provides stakeholders with insights into the company’s financial performance and strategic direction for the first half of the fiscal year 2026, potentially impacting its market positioning and investor relations.

Apollo Micro Systems Reports Record Revenue and PAT Growth in Q2FY26

Apollo Micro Systems Limited has announced its financial results for the quarter and half-year ending September 30, 2025, reporting a historic high in quarterly revenue and profit after tax (PAT). The company’s revenue surged by 40% year-over-year to ₹225 crores, while PAT increased by 91% to ₹30 crores compared to the same period last year. This significant growth highlights the company’s strong operational performance and positions it favorably in the market, potentially benefiting stakeholders and enhancing its industry standing.

Apollo Micro Systems Achieves Record Quarterly Revenue and Profit

Apollo Micro Systems Ltd. has reported its highest-ever quarterly revenue and profit after tax (PAT), demonstrating significant growth and operational excellence. The company achieved a 40% year-on-year revenue increase in Q2 FY26, reaching ₹2252.6 million, and a 91% increase in PAT to ₹300.31 million. This growth is attributed to the successful execution of a strong order book and the transition of high-value systems into full-scale production. The addition of IDL Explosives is expected to create synergies and accelerate long-term growth, positioning Apollo Micro Systems as a multidisciplinary defense systems powerhouse.