Apollo Micro Systems Ltd. (APOLLO) AI Stock Analysis

• Market Cap: ₹108.21B
• Dividend Yield: 0.08%
• Average Volume (3M): 2.58M
• Price to Earnings (P/E): 149.1
• Beta (1Y): 1.37
• Revenue Growth: 49.19%
• EPS Growth: 51.10%
• Country: IN
• Employees: 358
• Sector: Technology
• Sector Strength: 88
• Industry: Aerospace & Defense
• EPS (TTM): 0.56
• Shares Outstanding: 333,532,440
• 10 Day Avg. Volume: 1,156,320
• 30 Day Avg. Volume: 2,577,241
• 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: ₹343.00
• Price Target Upside: 5.72% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: ₹343.00 ▲(5.72% Upside)

Apollo Micro Systems Ltd. has strong financial performance with robust revenue growth and improving profitability. However, technical indicators suggest the stock is overbought, and the high P/E ratio indicates overvaluation. These factors combined result in a moderate overall stock score.

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 Ltd. generates revenue through the sale of its custom-built electronic and electro-mechanical systems to government and private sector clients in the aerospace, defense, and homeland security sectors. The company's key revenue streams include long-term contracts with defense organizations and collaborations with public and private sector enterprises for the development and supply of mission-critical systems. Additionally, Apollo Micro Systems engages in strategic partnerships to enhance its technological capabilities and expand its market reach, contributing to its overall earnings. The company's focus on innovation and meeting the specific needs of its clients helps maintain a steady flow of revenue.

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	5.63B	5.62B	3.72B	2.98B	2.43B	2.03B
Gross Profit	1.40B	1.28B	884.04M	877.46M	620.64M	522.37M
EBITDA	1.28B	1.32B	702.31M	616.92M	462.77M	390.30M
Net Income	563.96M	563.96M	311.19M	187.50M	146.22M	102.54M
Balance Sheet
Total Assets	12.99B	12.99B	9.56B	6.93B	5.99B	5.32B
Cash, Cash Equivalents and Short-Term Investments	624.78M	624.78M	275.44M	2.49M	3.43M	1.28M
Total Debt	3.35B	3.35B	2.08B	1.44B	1.16B	1.17B
Total Liabilities	6.92B	6.92B	4.37B	3.08B	2.79B	2.26B
Stockholders Equity	6.07B	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	73.80M
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: 324.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 324.45 is above the 20-day moving average (MA) of 315.38, above the 50-day MA of 241.99, and above the 200-day MA of 163.69, indicating a bullish trend. The MACD of 28.06 indicates Positive momentum. The RSI at 62.34 is Neutral, neither overbought nor oversold. The STOCH value of 52.12 is Neutral, 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	66 Neutral	₹57.82B	97.54	7.26%	―	26.57%	47.42%
CYIENTDLM	64 Neutral	₹34.43B	52.97	7.17%	―	24.95%	-2.24%
AXISCADES	64 Neutral	₹69.65B	88.36	11.55%	―	9.02%	68.70%
APOLLO	63 Neutral	₹108.21B	149.11	―	0.08%	49.19%	51.10%
AVALON	56 Neutral	₹66.26B	82.15	10.37%	―	46.95%	326.05%
CENTUM	53 Neutral	₹38.48B	549.73	-0.48%	0.23%	8.64%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Apollo Micro Systems Ltd. Corporate Events

Apollo Micro Systems Schedules Analyst Meeting and Plant Visit

Apollo Micro Systems Ltd. has announced a scheduled meeting with analysts and institutional investors at its Hyderabad office on September 15, 2025. The meeting, organized by ICICI Securities, will include a group meeting and plant visit under the event name ‘Defence Yatra’. The company has clarified that discussions will be based solely on publicly available information, with no unpublished price-sensitive information being disclosed. This event reflects Apollo Micro Systems’ ongoing efforts to maintain transparency with stakeholders and strengthen its position in the defense and aerospace sectors.

Apollo Micro Systems Schedules Investor Meeting and Plant Visit

Apollo Micro Systems Ltd. has announced a scheduled meeting with analysts and institutional investors at its registered office in Hyderabad. The meeting, set for August 23, 2025, will include a group meeting and plant visit, with discussions based on publicly available information. No unpublished price sensitive information will be shared, ensuring compliance with regulatory requirements. This engagement reflects the company’s commitment to transparency and maintaining strong relationships with stakeholders.

Apollo Micro Systems Reports Record Q1 FY26 Growth

Apollo Micro Systems Limited has reported a significant increase in its financial performance for the first quarter of fiscal year 2026, with revenue reaching ₹134 crore, a 46% year-over-year growth, and profit after tax (PAT) soaring to ₹18 crore, marking a 110% increase from the previous year. This strong financial performance indicates robust operational momentum and positions the company favorably within its industry, potentially enhancing stakeholder confidence and market positioning.

Apollo Micro Systems Reports Strongest Q1 Performance

Apollo Micro Systems Ltd. has released its investor presentation for the first quarter ending June 30, 2025, highlighting its strongest performance to date. This announcement underscores the company’s robust operational capabilities and its commitment to delivering value to stakeholders, potentially enhancing its market position and investor confidence.