Apollo Micro Systems Limited (APOLLO)
Micro CapIndustrials stocks · Micro cap · NSE
Apollo Micro Systems is an Indian defense electronics and weapon systems manufacturer, transitioning from a Tier 1 supplier to a global OEM. It specializes in air and underwater defense, including missiles, EW, avionics, torpedoes, and mines. The company is expanding into land systems, armament electronics, fire control, and counter-drone systems, and is an approved DRDO production partner.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Average · 52/100margin compression · Rev +87% YoY · PAT +39% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹251 Cr | +87.3% | -14.3% |
| EBITDA | ₹54 Cr | +31.7% | -20.6% |
| Operating margin | 21.0% | -1000 bps | -200 bps |
| PAT | ₹25 Cr | +38.9% | -32.4% |
| PAT margin | 10.0% | -347 bps | -267 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Apollo Micro Systems reported its highest ever quarterly and annual revenue, EBITDA, and PAT in Q4 FY26 and FY26. Consolidated FY26 revenue grew 61% YoY to INR904 Cr, EBITDA 69% to INR218 Cr, and PAT 91% to INR107 Cr. Q4 FY26 revenue surged 81% YoY to INR293 Cr, with PAT up 164% YoY to INR37 Cr.
The company delivered robust FY26 results with record revenue and profit growth, driven by strong execution and strategic initiatives like new licenses and R&D. The order book provides good visibility. However, the loss-making IDL Explosives subsidiary and high promoter pledge require close monitoring. Management expects continued strong growth.
Global OEM Transition
Transitioning from a Tier 1 supplier to a global OEM with Apollo's name on defense platforms, not just internal electronic systems.
Diversified Defense Domains
Expanding into land systems, armament electronics, fire control systems, battle tanks, ICVs, artillery platforms, and vehicle-mounted counter-drone systems.
R&D-led Innovation
Driving futuristic R&D in RF technologies, AI, autonomous systems, and inertial navigation technologies, with 8% of revenue invested in FY26.
Explosives & Ammunition
Heavy focus on ammunition and artillery, with IDL Explosives supporting the explosive portion and Apollo providing hardware and intelligence.
Greenfield Expansion (Unit 3)
Phase one civil work for Unit 3 in Telangana is complete, with machinery received and installation ongoing. Phase two civil work is in progress.
RF Seeker Testing Facility
Setting up a specialized RF seeker testing facility in the upcoming unit in Hardware Park.
Internal Test Facilities
Setting up all test facilities internally, which were previously outsourced, to improve holding periods.
Government Initiatives
Strong commitment to indigenization and Atmanirbhar Bharat initiative, supported by 100% utilization of the allocated defense budget.
New Licenses & Alliances
Received DPIIT license for a broad range of defense platforms (UAVs, missiles, torpedoes, etc.) and ToT for directed energy weapons. Formed alliances with Indian Navy, IIT Chennai, and GRSE.
Export Opportunities
Secured first export order and actively submitting offers for various international opportunities, with audits by potential customers underway.
Global Demand for Explosives
Global conflicts and depletion of stocks create significant opportunities for explosive companies, both in India and worldwide.
Project Approval Delays
Certain projects expected for Q4 FY26 execution were delayed due to pending customer approvals, impacting standalone revenue growth.
IDL Explosives Profitability
IDL Explosives was loss-making for the last few years and is currently undergoing a transformation phase, impacting consolidated profitability.
Elongated Working Capital Cycle
Defense systems have highly elongated gestation, production, and testing cycles, leading to growing inventory levels as business expands.
Promoter Share Pledge
Promoter pledge remains around 39%, despite a previous commitment to reduce it to zero in FY26.
Project Approval & Execution Delays
Revenue recognition timing can shift due to delays in customer approvals and operational conditions, as seen in Q4 FY26.
R&D Investment Outcomes
Management acknowledges that some R&D bets may not succeed and could require course correction.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The company emphasizes year-on-year growth for both quarterly and annual results, indicating that project execution and long-term strategic progress are best measured against the previous year, rather than sequential quarter-on-quarter fluctuations which can be lumpy in defense.
Revenue from Operations
INR904 crores in FY26, registering a strong year-on-year growth of 61%.
EBITDA
INR218 crores in FY26, grew significantly by 69% YoY.
PAT
INR107 crores in FY26, increased by 91% YoY.
EBITDA Margin
24% in FY26, expanded by 114 basis points.
Upcoming Acquisition
An additional acquisition by Apollo Defence Industries Private Limited is expected to be completed before the end of this financial year, complementing organic growth.
Vision 2036 Unveiling
The detailed Vision 2036 document, outlining strategy and growth areas for the next decade, will be unveiled soon.
Sustained Growth & Order Inflow
Expects to continue growing at a similar or accelerated pace in FY27 and beyond, with the order book size increasing significantly this financial year.
IDL Transformation & Guidance
IDL Explosives is undergoing a transformation; management will provide revenue guidance and updates on initiatives from Q3 onwards.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Order Inflow | Order book at INR1,432 Cr. | Significant increase in order book size from large ticket projects in FY27. |
| IDL Explosives Turnaround | Loss-making, undergoing transformation. | Reduction in operational losses and positive EBITDA contribution from IDL Explosives from Q3 onwards. |
| Promoter Pledge Reduction | Around 39% pledged. | Concrete steps and progress towards reducing promoter share pledge to zero in FY27. |
| Navy Order Approval | Awaiting DAC approval for a large Navy order (mines/torpedoes). | Announcement of DAC approval and receipt of the large Navy order. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
53NeutralSMA20 -2.3% / mo · MACD +
Technical chart
APOLLOdaily · 1Y · AUTO+81.2%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 50. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 falling (~2.4% over last month) — short-term momentum negative.
- RSI(14) at 50 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 17% off 52W high · 117% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 34 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 34 · WATCHLIST · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Growth contributes 22/25 to the score.
- Balance sheet contributes 4/15 to the score.
- Quality contributes 4/20 to the score.
Main drags
- Promoter pledge is 30.5%.
- Fair-value margin of safety is negative at -187.2%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
Execution business valuation: EV/EBITDA plus order and working-capital risk
Capital-intensive execution stories need cash-flow and balance-sheet checks alongside valuation.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 42nd percentile of the scored universe and 40th percentile within Industrials. Main check: cash conversion is weak at 40/100.
Healthy Trust Lite: 4/4 latest quarters had positive YoY revenue growth. Key concern: Promoter pledge is elevated at 30.5%.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Industrials: 40th pctile, median 68 · Micro: 25th pctile, median 73
55 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸4/4 latest quarters had positive YoY PAT growth.
- ▸Latest 3 quarters had positive YoY PAT growth.
Trust risks
- ▸Promoter pledge is elevated at 30.5%.
- ▸Operating cash flow is negative at ₹-130 Cr.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 119.00
- P/B
- 10.57
- EV/EBITDA
- 58.57
- Market Cap
- 14452.00Cr
Profitability
- ROE
- 11.80%
- ROCE
- 14.50%
- ROA
- 4.85%
- Dividend Y
- 0.06%
Growth (CAGR)
- Revenue 5Y
- 35.00%
- EPS 5Y
- 62.00%
- Revenue 3Y
- 45.00%
- EPS 3Y
- 76.00%
Balance Sheet
- Debt/Equity
- 0.41
- Interest Coverage
- 5.02×
- Altman Z
- 7.71
- Book Value
- 36.80
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 2/5
- OCF
- -130.00 Cr
- EPS TTM
- 3.42
Shareholding
- Promoter Hold
- 49.98%
- Promoter Pledge
- 30.50%
- Momentum 52W
- 73%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.