Defence multibagger Apollo Microsystems shares edged higher in trade; what drove the rally?

Defence multibagger Apollo Microsystems shares edged higher in trade; what drove the rally?

Apollo Microsystems share price: Shares of Apollo Microsystems Ltd, a Hyderabad-based defence technology company, rose nearly 2 per cent to Rs 173.19 apiece in Monday’s trade following its Q1FY26 results and the announcement of a first-ever export order worth $13.37 million (Rs 113.81 crore). The stock saw renewed investor interest after the exchange filing on August 4 highlighted strong operational performance and a key milestone in its global expansion strategy.

Q1FY26 earnings highlights 

Apollo Microsystems reported a 110 per cent year-on-year (YoY) jump in net profit, which surged to Rs 176.8 million from Rs 84.3 million in the same quarter last year.

  • Revenue stood at Rs 1,335.8 million, up 46 per cent YoY from Rs 912 million.

  • EBITDA rose 83 per cent YoY to Rs 409.4 million, from Rs 223.7 million.

  • EBITDA margin improved by 600 basis points to 31 per cent.

  • PAT margin expanded by 400 basis points to 13 per cent, both YoY and sequentially.

The management attributed the earnings growth to timely execution of its strong order book and transition of high-value defence systems into production.

Export order details

Apollo Microsystems announced its first international defence export order worth $13.37 million. The company said this marks a strategic milestone in expanding its global footprint. “This achievement reflects the trust international clients place in our capabilities. It reaffirms our commitment to unlocking growth opportunities in new markets,” Apollo Microsystems said in a regulatory statement.

Stock performance

The stock saw a 10 per cent dip in the last month. Apollo Microsystems has delivered over 48 per cent gains in the last three months, driven by strong business momentum. Over a five-year horizon, the stock has delivered a 1,298 per cent return, establishing itself as a multibagger in the defence space.

Investor Outlook

With a strong order pipeline, increasing focus on indigenisation, and now a footprint in the export market, Apollo Microsystems is positioning itself as a key player in India’s Make in India and defence export narratives.

Analysts remain optimistic on the company’s earnings trajectory, given the expanding margin profile, strategic wins, and operational efficiency.

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