Apollo Micro Systems Limited (APOLLO) share price

₹422.25 on NSE as of 2026-09-11. +2.19% on the day. market cap ₹15,691 Cr. P/E 122.0. 52-week range ₹182.16 to ₹450.05. Capital Goods.

Apollo Micro Systems Q1 FY27: Revenue Up 88% to ₹251 Cr, a ₹1,704 Cr Order Book, and a ₹1,550 Cr Bid for an Explosives Maker

At a glance

Consolidated revenue for the June 2026 quarter came in at ₹251 crore against ₹134 crore a year earlier — an 88.1% jump, which is the sort of number that usually requires either an acquisition or a small miracle. In this case it was partly the acquisition. Operating profit was ₹54 crore, PAT ₹26.9 crore, EPS ₹0.72.

Sitting alongside that: a signed agreement to buy 41.33% of Premier Explosives Limited for roughly ₹1,550 crore in cash, an order book of ₹1,704 crore consolidated as of 8 August 2026, and a July calendar so crowded with defence announcements that the company filed press releases on the 22nd, the 28th (twice), and the 31st. For a company whose products spend most of their working lives waiting silently underwater, the corporate communications department has been remarkably noisy.

The quarter also carried an auditor's Emphasis of Matter on subsidiaries with negative net worth, a promoter pledge standing at 30.5%, and the conversion of 1,43,07,072 remaining share warrants at ₹114 apiece — completing a warrant issue that began in June 2025 and expanding the weighted average share count by over 11% year on year.

Market capitalisation is ₹14,290 crore. Sales for the trailing twelve months are ₹1,022 crore. The gap between those two numbers is what the rest of this entry is about, and none of it involves the word "should."

The Premier Explosives transaction has a regulatory queue attached to it, which is where we'll start.

Introduction

Apollo Micro Systems was incorporated in 1985 as a proprietary company doing electronic CAD design services — which, in mid-eighties Hyderabad, was roughly as glamorous as it sounds. By 1990 it was supplying on-board systems for defence. By 1992, indigenous processor boards. It converted to a private limited company in 1997, supplied ISRO its first indigenous pay-load checkout system in 2000, and became the first private company in defence electronics to be ISO certified in 2004. Forty-one years later the same founder is still Managing Director, which in Indian smallcap terms is practically a geological formation.

The company listed on NSE and BSE in 2018. It reached ₹100 crore of turnover in 2015, ₹200 crore in 2017, and ₹904 crore in FY26 — a company that took thirty years to get to its first ₹1 billion and then did the next several rather more briskly.

The recent history is almost entirely inorganic and entirely explosive, in both senses. In 2021 it acquired an established RF company. In 2025, subsidiary Apollo Defence Industries Private Limited signed to acquire 100% of IDL Explosives Limited from GOCL Corporation for ₹107 crore, completing on 15 November 2025. On 9 July 2026 the company signed a share purchase agreement for 41.33% of Premier Explosives. SEBI issued final comments on the accompanying open offer on 16 August and, per the company's disclosure, allowed the open offer for 1.39 crore Premier shares at ₹698, pending approval from the Competition Commission of India.

Funding this has involved the capital markets doing sustained heavy lifting: ₹265 crore of convertible warrants approved in July 2024, ₹741.50 crore raised in June 2025 through preferential allotment, and a corrigendum on 11 July 2026 revising a preferential issue to 2.28 crore shares and 5.69 crore warrants worth ₹3,322 crore. An EGM on 4 August 2026 covered the preferential issue, warrants, capital increase and borrowing powers — four agenda items that all point the same direction.

Management told the August call it has appetite for two to three further acquisitions.

Business model

Apollo builds the parts of a weapon that think. Management's own description is that it makes the missile's brain, its nerves and its eyes — and notes that without them, the thing is just a flying shell. Rarely has a company's value proposition been stated with such alarming clarity.

Concretely: weapon system electronics spanning fuzes, seekers, on-board computers, guidance systems and fin actuation, plus telemetry, secure data links, inertial navigation and payload checkout systems. The company reports 700+ on-board technologies, participation in 150+ indigenous programmes, and 60+ DcPP programmes as a sub-system partner. It holds a Government of India licence covering missiles, ATGMs, torpedoes, underwater mines, SAMs, chaffs, flares, decoys, aerial bombs, rockets and loitering munitions — a document that reads less like a manufacturing licence and more like a very committed hobbyist's shopping list.

Then there are the mines. The company describes itself as the only Indian company offering shallow water, deep water and limpet mines. It is the DcPP partner for the Multi-Influence Ground Mine, which received DAC approval on 3 July 2026. Its own presentation quotes the observation that a mine is a terrible thing that waits — a business model with a genuinely unusual working-capital narrative, since the product's entire job is to do nothing for as long as possible.

The portfolio also includes aerial bombs in nine drop variants, 122mm Grad rocket warheads, anti-submarine warfare rockets, vehicle-mounted counter-drone systems, and a transfer of technology from DRDO-CHESS for a 10 kW laser directed energy weapon — because the electronics division apparently decided that shooting things was no longer sufficiently direct.

Manufacturing runs from Hyderabad: Unit 1 at 55,000 sq ft, Unit 2 at 3,50,000 sq ft, and Unit 3 under construction as a weapon integration facility with Phase 1 production started and full readiness expected before March 2027. A greenfield expansion of ₹300 crore includes a 2,47,441 sq ft land bank adjacent to Unit 3.

Subsidiaries: Ananya SIP RF Technologies (RF and microwave), Apollo Defence Industries, step-down subsidiaries Apollo Strategic Technologies and IDL Explosives. R&D ran ₹72.53 crore in FY26 on standalone revenue of ₹764 crore, an intensity management put at about 9.5%.

Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for Apollo Micro Systems Limited.

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