Apollo Micro surges 14%, hits new high; what's driving defence stock up?

Thus far in the month of August, the stock price of the smallcap aerospace & defence company has rallied 35%, surpassed its previous high of ₹221.40

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Apollo Micro Systems share price today

 

Apollo Micro Systems shares hit a new high of ₹233.75 today, surging 14 per cent on the BSE in Friday's intraday trade amid heavy volumes, after the company won orders worth ₹25.12 crore from the Defence Research and Development Organisation (DRDO) & Defence Public Sector Undertakings (PSUs).

 

The stock price of the smallcap aerospace and defence company surpassed its previous high of ₹221.40, which it had touched on June 24, 2025. Thus far in the month of August, Apollo Micro stock has rallied 35 per cent. Further, in past six months, it has zoomed 102 per cent as compared to a 9.5-per cent rise in the BSE Sensex.

 

At 10:24 AM, Apollo Micro Systems was trading 12 per cent higher at ₹228.80 as compared to 0.63 per cent decline in the BSE Sensex. The average trading volume on the counter jumped nearly three-fold today with a combined 20.19 million equity shares changing hands on the NSE and BSE.

 

What's driving smallcap defence stock?

 

Apollo Micro Systems, on Thursday, announced that the company, in the ordinary course of its business, has been declared as the lowest bidder for orders worth ₹25.12 crore from DRDO & Defence PSUs.

 

On August 4, 2025, the company said it has successfully secured its first export order valued at $13.37 million, approximately ₹113.81 crore. 

 

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. 

 

This growth was primarily driven by the seamless execution of the company's strong order book and the transition of several high-value systems into full-scale production.

 

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, reaching a new high of 31 per cent as compared to 25 per cent in Q1FY25, underscoring the strength of operating leverage and execution efficiency, the company said.

 

The recent geopolitical developments, particularly the escalation of tensions between India and Pakistan, have further accelerated the demand for indigenous, mission-critical defence solutions. Several of the company's systems were successfully tested and demonstrated during this period, attracting significant interest from key stakeholders across India's defence value chain, the management said. 

 

The company has an unexecuted order book position of ₹735 crore. Additionally, the capex of ₹149.05 crore in Electronic City is expected to be completed in the current year (Q2FY26), which is expected to result in an increase in the scale of operations over the medium term, according to the analysts. 

 

Choice Equity Broking view on Apollo Micro Systems

 

The brokerage firm maintains a 'Buy' rating on Apollo Micro Systems with a target price of ₹ 240 per share, backed by its strategic shift from a component supplier to a full-fledged system integrator. The company's expanding role across key defence programs, robust order pipeline and visible margin trajectory reinforce the brokerage firm's conviction in its long-term growth story.  

 

About Apollo Micro Systems

 

Apollo Micro Systems is a Hyderabad-based company engaged in the business of electronic, electro-mechanical, engineering designs, manufacturing and supply. The company specialises in the design, development and sale of high-performance, mission and time critical solutions to defence, space and home land security.

 

The major customers include the Ministry of Defence (MoD), Defence Research and Development Organisation (DRDO), BrahMos Aerospace Private Limited, Bharat Electronics Limited (BEL), Hindustan Aeronautics Limited (HAL), and units operated by the Indian Space Research Organisation (ISRO) among others.