Apollo Micro Systems stock zooms 101% in 6 weeks. What's behind the rally?

Shares of Apollo Micro Systems hit a new high of ₹341.05, soaring 6 per cent on the BSE in Monday's intra-day trade.

Apollo Micro Systems share price today

 

Shares of Apollo Micro Systems continued their upward movement, hitting a new high of ₹341.05, soaring 6 per cent on the BSE in Monday’s intra-day trade. The stock price of the smallcap aerospace & defence company was quoting higher for the fourth straight trading day, soaring 25 per cent during the period.

 

In the past six weeks, the stock has more-than-doubled or skyrocketed 101 per cent from a level of ₹170 on August 1, 2025. It has bounced back 287 per cent from its 52-week low of ₹88.10 touched on October 23, 2024.

 

At 01:04 PM; Apollo Micro Systems was trading 3.3 per cent higher at ₹332.80, as compared to 0.02 per cent decline in the BSE Sensex. A combined 21.44 million equity shares of Apollo Micro Systems changed hands on the NSE and BSE.

 

Why is Apollo Micro Systems outperforming the market?

 

On September 11, 2025, Apollo Strategic Technologies (ASTPL), a step-down subsidiary of the company, signed a Memorandum of Understanding (MoU) with Dynamic Engineering and Design Inc., USA for technology transfer, co-development, and potential licensed production of rocket motors for BM-21 Grad ER and Non-ER rockets. 

 

The collaboration, formalised at DSEI London 2025, is aimed at indigenising propulsion technologies for multi-barrel rocket systems. The company group, which has already developed the 122mm rocket warhead in-house, plans to begin trials soon and target full-scale production by mid-2026.

 

This strategic collaboration will enable Apollo to integrate indigenously developed warheads with domestically produced rocket motors, marking a significant milestone in India’s private defence manufacturing sector, the company said in an exchange filing.

 

The BM-21 Grad rockets remain among the most widely demanded unguided rockets in the global defence market. With this initiative, Apollo Group will emerge as one of the private companies in India to offer a fully in-house developed rocket system, of this calibre strengthening India’s position in the global defence supply chain and contributing to the Government of India’s vision of self-reliance in defence production.

 

Defence sector outlook

 

India offers a diverse range of military products to other countries, including aircraft, systems for navy ships and missile technology and equipment. Despite regulatory challenges and international competition, India has a big opportunity to sell to new and emerging markets, Apollo Micro Systems said in its FY25 annual report.

 

Meanwhile, the Ministry of Defence (MoD) has approved the Defence Procurement Manual (DPM) 2025 to streamline revenue procurement worth nearly ₹1 trillion annually for the Armed Forces. The revised manual focuses on self-reliance, faster decision-making, and greater participation from private firms, MSMEs, start-ups, and DPSUs. 

 

The manual, revised after 2009, also supports indigenisation, innovation, and digital procurement, aiming to boost domestic defence manufacturing while ensuring timely availability of resources for operational readiness. MOD is also working to finalise a revised version of the Defence Acquisition Procedure (DAP) 2020 (a document that lays out the procurement procedures for capital acquisitions like jets, tanks, submarines and warships) before the end of 2025.

 

The DPM 2025 is a structural positive for the defence sector as it simplifies procurement, reduces execution risks, and ensures faster order flow. By lowering penalties, assuring order guarantees, and enabling greater private participation, the policy improves visibility for both DPSUs and private firms. The emphasis on indigenisation and digital procurement strengthens long-term growth prospects, positioning Indian defence companies to scale production, expand exports, and play a larger role in global supply chains, ICICI Securities said in a note.