Apollo Micro shares hit record on contract wins; stock rallies 130% in 2025

Apollo Micro Systems shares hit a record high, surging nearly 5 per cent on Monday after securing two DRDO contracts

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Shares of Apollo Micro Systems rose nearly 5 per cent on Monday after it secured two contracts from the Defence Research and Development Organisation (DRDO). 

 

The aerospace and defence firm's stock rose as much as 4.95 per cent during the day to a record high of ₹275.8 per share. The stock pared gains to trade 1.2 per cent higher at ₹265.8 apiece, compared to a 0.60 per cent advance in Nifty 50 as of 12:38 PM. 

 

Shares of the company rose for the second straight day and currently trade at 3.5 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 131 per cent this year, compared to a 3.7 per cent advance in the benchmark Nifty 50. Apollo Micro Systems has a total market capitalisation of ₹8,933.67 crore.  

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Apollo Micro Systems bags two contracts

The company said it has been approved as the production agency for the Multi-Influence Ground Mine (MIGM) – Vighana under the Development-cum-Production Partner (DcPP) programme by the Defence Research and Development Organisation (DRDO). The company has also signed a Transfer of Technology (ToT) agreement with DRDO for the Omni-Directional multi-EFP warhead for the NASM-SR missile.

 

Further, on August 21, the company said it was declared the Lowest (L1) Bidder for orders worth ₹25.12 crore from the Defence Research and Development Organisation (DRDO) & Defence Public Sector Undertakings (PSUs). 

 

Apollo Micro Systems, in its financial year 2024-25 (FY25) annual report, said that the company aims to reinforce its R&D foundation to drive innovation and develop cutting-edge technologies in defence and strategic electronics. The company’s strategy is focused on moving up the value chain to become a global Original Equipment Manufacturer (OEM), delivering complete, high-reliability solutions.  

 

Choice Institutional Equities on Apollo Micro Systems 

The brokerage views the company's dual growth drivers—organic innovation and inorganic expansion—as a strong foundation for scalable growth. The IDL Explosives acquisition and RF capability build-out signal deeper value chain integration, supporting profitability and positioning, it said in a report earlier. 

 

With Unit-3 capacity coming onstream and system-level deliveries ramping up from FY27E, Apollo is well placed to leverage strong order momentum. Backed by a ₹735 crore order book, robust pipeline, and rising export visibility, the brokerage sees it as a compelling long-term play on India’s defence indigenisation.

 

Meanwhile, in the April to June 2025 quarter (Q1FY26), Apollo Micro Systems recorded robust revenue growth of 46 per cent year-on-year (Y-o-Y), reaching ₹133.6 crore compared to ₹91.2 crore in Q1FY25. On the profitability front, the company's Ebitda (excluding other income) increased by 83 per cent Y-o-Y to ₹40.94 crore, while Ebitda margin improved by 600 basis points.