Multibagger defence stock: It was another bull day for Apollo Micro Systems as shares jumped 2% to the day’s high of ₹348 apiece in Thursday’s trade, just 2% shy of its record high of ₹354.70 apiece, which it touched in the previous trading session.
The shares have been maintaining a steady winning run since the start of August and have gained 103% since, underscoring the strong demand the stock is receiving from Dalal Street investors. The robust financial performance with each passing quarter, steady inflow of orders, and improving sentiment toward defence stocks are all aiding a stellar rally in the shares.
Further, the company, in its regulatory filing today, informed that it has entered into Memoranda of Understanding (MoUs) with Sibersentinel Technologies Limited and Zoom Technologies (India) Private Limited to jointly design, develop, and deploy advanced cybersecurity solutions tailored for government agencies, statutory bodies, financial institutions, and other critical infrastructure sectors.
“This strategic partnership aims to combine Apollo’s domain expertise in defence-grade electronic systems with Sibersentinel’s and Zoom Technologies’ cybersecurity capabilities to provide robust, indigenous digital protection solutions aligned with national security imperatives,” the company said in today’s regulatory filing.
Apollo Micro Systems shares deliver 200% in just 6 months
The latest rally has propelled the stock to gain 200% in just six months and nearly 3,000% over the last five years. The rally, which began in August, has continued to rise without any major pullbacks as investors were encouraged by the company’s June quarter numbers.
For Q1FY26, the company reported its highest-ever quarterly net profit (consolidated) of ₹18.51 crore, up 115% from ₹8.43 crore in the same quarter last year, driven by improved operational efficiency. The company has been reporting steady growth in net profit in recent quarters, which is also reflected in a sharp rise in its share value.
Its consolidated revenue from operations grew 47.25% YoY to ₹134 crore, while at the operating level, the company posted an EBITDA of ₹41 crore, a significant jump from ₹22 crore in Q1FY25. The EBITDA margin expanded by 700 basis points YoY and 900 basis points QoQ to 31%, largely driven by a favorable product mix and lower raw material costs.
Apollo Micro Systems is a Hyderabad-based company engaged in electronics, electro-mechanical engineering design, manufacturing, and supply. It is involved in the design, development, and sale of high-performance, mission- and time-critical solutions for defence, space, and homeland security, catering to the Ministry of Defence, government-controlled public sector undertakings, and private sector clients.
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