Defence multibagger Apollo Micro Systems has maintained its upward trend in recent sessions, with the stock witnessing a sharp rise in buying interest following the release of its September-quarter results, which came in above analysts’ estimates.
The upbeat results also prompted domestic brokerage firm Systematix Institutional Equities to maintain its bullish stance on the stock, retaining its Buy rating and target price of ₹570 apiece, indicating an upside potential of 37% from the stock’s latest close of ₹415.
Earlier this week, the company reported a 55.6% year-on-year increase in net profit to ₹48.4 crore, while revenue from operations surged 72.2% YoY to ₹388 crore. EBITDA rose 87.6% year-on-year to ₹111 crore from ₹59.2 crore, while the EBITDA margin expanded to 28.6% from 26.3%.
The brokerage said that the company continues to outperform expectations on both revenue and margin fronts. With Unit III now coming towards the final stage of completion and a significant capacity ramp-up planned in its explosives business, it believes growth rates to sustain.
The robust order pipeline remains firm with MIGM Mines (expected before Mar ’27), Moored Mines, AHWT, QRSAM and Pinaka orders expected in the near term.
Systematix said that the company expects an Rs120 billion order inflow in the next two years. Some of the larger programs involved include MIGM Mine (RFQ expected in November, order expected before March 31, 2027) and Heavy Weight Torpedo (RFQ submitted, next 1 month) QRSAM, Pinaka, Heavy Weight Torpedo (expecting order next month, RFQ out for the same (13 no.s) on fast track. 135 nos after that).
Moving towards missile system integration capabilities
The company incorporated ShauryAstra Defence Systems on August 21, 2026, to undertake the design and development of complete weapon systems. The company subscribed to a 34% stake in the entity by acquiring 3,400 shares for ₹34,000, making it an associate company.
The entity is headed by Dr V.K. Saraswat, who has four decades of experience in Indian defence research and policymaking, including roles as a missile scientist, head of the Defence Research and Development Organisation (DRDO), and a member of NITI Aayog. Its mandate covers complete weapon systems, long-range systems, unmanned platforms and advanced defence technologies.
Delivers 3400% gain in five years
Even as the broader markets remained highly volatile throughout 2026, the stock continued its winning run, rallying 52% so far this year. The latest gains extend its winning streak to a seventh consecutive year. The stock delivered a sharp 135% return in 2025, following a 290% gain in 2023.
Cumulatively, the stock has gained 454% over the past three years and 3,400% over the past five years. From its 2019 low of ₹6.50 apiece, the stock has surged 6,284%.
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