An digital, electromechanical and engineering design, manufacturing and provides firm is value conserving in your radar after the corporate introduced its Q2 FY26 monetary outcomes, order ebook, acquisitions, administration commentary & steering and extra.
We’re speaking about Apollo Micro Techniques Restricted, which is principally into the availability of electronics and electro-mechanical techniques and parts, together with design, analysis & improvement of techniques that are utilized in missile programmes, underwater missile programmes, avionics techniques, ship-borne techniques, submarine techniques, and so on.
With a market cap of Rs. 9,244 crores, shares of Apollo Micro Techniques Restricted surged round 2 p.c to Rs. 281.65 on Wednesday morning buying and selling session, as in opposition to its earlier closing of Rs. 276.5 on BSE. The inventory has delivered multibagger returns of round 186 p.c in a single yr, however has fallen by over 12 p.c in a single month.
Firm overview & Product Portfolio
Established in 1985 and headquartered in Hyderabad, Apollo Micro Techniques Restricted (AMS) is a number one expertise supplier of high-performance, mission-critical options for the defence sector. Its experience spans weapon digital techniques throughout floor defence, missile defence and naval defence. AMS is the one firm with the very best participation within the indigenous missile applications of DRDO.
The corporate’s present portfolio contains a spread of weapon techniques which have both accomplished qualification or are in superior phases of the qualification course of. These embrace underwater mines, underwater moored mines, anti-submarine warfare rockets, medium-range aerial rockets, limpet mines, and aerial bombs. All these techniques have been indigenously developed and produced in-house.
In Q2 FY26, AMS achieved a serious strategic milestone with the acquisition of IDL Explosives Ltd. This improvement marks a major step ahead within the firm’s journey towards changing into a totally built-in Tier-1 defence OEM. The acquisition strengthens AMS’s manufacturing capabilities and expands its options portfolio throughout essential segments of India’s defence provide chain. This milestone represents an necessary development for the corporate, positioning it for larger scale, operational synergy, and long-term progress.
Manufacturing Capabilities
The corporate operates manufacturing items in Hyderabad and Rourkela (Odisha). As a part of its backward integration technique, AMS has initiated the development of an Built-in Plant for Ingenious Defence Techniques (IPIDS). This facility is predicted to reinforce in-house capabilities, develop manufacturing capability, and strengthen its place as a Tier-I end-to-end OEM producer. As soon as operational, it is going to help scaling up manufacturing to fulfill rising demand.
Moreover, the corporate has invested in a brand new weapon integration facility (Unit-III). Whereas Unit-I’ll give attention to R&D actions, manufacturing operations shall be carried out at Unit-II and Unit-III. The brand new unit will even function a consolidated manufacturing hub, streamlining processes and integration.
In FY25, the corporate’s R&D efforts resulted within the profitable improvement of aerial bombs, underwater acoustic sensors, essential actuation techniques, secured knowledge hyperlinks, and several other different superior defence merchandise. Ongoing tasks embrace work on essential and next-generation options.
The devoted R&D group consists of skilled engineers specialising in embedded {hardware} and software program improvement, with experience spanning aerospace, avionics, house, naval, on-board techniques, and floor help tools. For FY26, an allocation of Rs. 100 crore has been earmarked for R&D initiatives.
Administration Commentary & Steerage
Latest geopolitical developments, notably the India–Pakistan battle, have accelerated the demand for indigenously developed defence options. Throughout this era, a number of of the corporate’s techniques have been efficiently examined and demonstrated, attracting sturdy curiosity and engagement throughout the defence worth chain.
Wanting forward, AMS expects its income to develop at a compound annual progress charge (CAGR) of 45-50 p.c over the subsequent two years, pushed completely by its core enterprise operations, excluding any contribution from the latest acquisition. This progress outlook is supported by a strong order ebook and a pipeline of merchandise transitioning into the manufacturing part.
The corporate’s receivables at the moment stand at Rs. 360 crore. The administration acknowledged that receivables are anticipated to say no considerably by the top of the present monetary yr. This enchancment shall be pushed by the completion of a number of long-gestation tasks that had prolonged fee cycles. A visual discount is anticipated in Q3, with a extra substantial drop in This autumn.
They additional added that from FY27 onwards, receivables ought to stay decrease, as the corporate shifts focus in direction of production-based orders as a substitute of R&D-heavy tasks.
Financials & Order Guide
In Q2 FY26, Apollo Micro Techniques reported a consolidated income from operations of Rs. 225.3 crores, a major progress of round 69 p.c QoQ and 40 p.c YoY. This sturdy efficiency was primarily pushed by the environment friendly execution of the corporate’s order ebook and the graceful transition of a number of high-value techniques into the manufacturing part.
Equally, the corporate’s web revenue for the quarter stood at Rs. 30 crores, representing a rise of almost 70 p.c QoQ and 91 p.c YoY. additional, the PAT margin elevated to 13.3 p.c in Q2 FY26, up from 9.8 p.c in Q2 FY25 and 13.2 p.c in Q1 FY26, indicating stronger profitability.
The corporate reported a consolidated EBITDA of Rs. 59.2 crore in Q2 FY26, a forty five p.c QoQ improve from Rs. 40.9 crore in Q1 FY26 and an 80 p.c YoY rise from Rs. 33 crore in Q2 FY25. In the meantime, the EBITDA margin defined by 600 foundation factors to 26.3 p.c in Q2 FY26, in comparison with 20 p.c in Q2 FY25, reflecting higher operational effectivity regardless of a marginal dip from 30.6 p.c in Q1 FY26. As of thirtieth September, the order ebook of AMS stood at Rs. 785 crores.
Written by Shivani Singh
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