Apollo Micro Systems Ltd. (APOLLO) AI Stock Analysis

• Market Cap: ₹88.21B
• Dividend Yield: 0.09%
• Average Volume (3M): 1.19M
• Price to Earnings (P/E): 101.3
• Beta (1Y): 1.40
• 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: 335,639,650
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ₹289.00 ▲(9.97% Upside)

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

Revenue Growth

The company's robust revenue growth, increasing from 2,431 million in 2022 to 5,649 million in 2025, highlights its expanding market presence and successful product adoption in the defense and aerospace sectors.

Profitability Improvement

The significant improvement in net profit margin indicates enhanced operational efficiency and cost management, which strengthens the company's long-term financial health and ability to reinvest in growth opportunities.

Operational Efficiency

The shift to positive operating cash flow demonstrates improved operational efficiency, ensuring better cash generation to support ongoing business operations and potential investments in innovation and expansion.

Negative Factors

High Capital Expenditures

High capital expenditures leading to negative free cash flow could constrain the company's financial flexibility, potentially limiting its ability to respond to market opportunities or economic downturns.

Increased Leverage

Rising debt levels, despite being manageable, increase financial risk and could impact the company's ability to secure favorable financing terms in the future, affecting long-term sustainability.

Equity Ratio Decline

A declining equity ratio suggests a more leveraged balance sheet, which could heighten financial risk and affect investor confidence, potentially impacting the company's ability to attract future investment.

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: 262.80
• 50DMA: Negative
• 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 262.8 is above the 20-day moving average (MA) of 249.37, below the 50-day MA of 268.14, and above the 200-day MA of 211.85, indicating a neutral trend. The MACD of -6.72 indicates Negative momentum. The RSI at 54.66 is Neutral, neither overbought nor oversold. The STOCH value of 93.30 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
CYIENTDLM	67 Neutral	₹33.73B	40.99	―	―	9.86%	21.38%
MTARTECH	66 Neutral	₹75.42B	164.60	―	―	12.06%	16.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
APOLLO	59 Neutral	₹88.21B	101.33	―	0.09%	39.76%	55.23%
AVALON	59 Neutral	₹58.72B	67.12	―	―	46.80%	201.41%
AXISCADES	59 Neutral	₹57.17B	63.11	―	―	11.17%	90.62%
CENTUM	52 Neutral	₹35.38B	304.74	―	0.25%	10.29%	―

Apollo Micro Systems Ltd. Corporate Events

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.

Apollo Micro Systems Announces Trading Window Closure

Apollo Micro Systems Limited has announced the closure of its trading window in compliance with SEBI’s Prohibition of Insider Trading Regulations, 2015. This closure will be in effect from October 1, 2025, until 48 hours after the announcement of the company’s unaudited financial results for the quarter and half-year ending September 30, 2025. This move is aimed at preventing insider trading by restricting directors, promoters, designated persons, insiders, and their immediate relatives from dealing in the company’s shares during this period.

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.