Apollo Micro Systems Q2 FY26 Concall Decoded: From Circuits to Missiles – Hyderabad’s Own “Make-in-India” Avengers

1. Opening Hook

Apollo Micro Systems just dropped a bomb (figuratively, for now). The defense-tech firm is morphing from subsystem supplier to full-blown weapons manufacturer—because apparently, “Make in India” now includes things that actually explode. With revenues rocketing 69% QoQ, and an 8x capacity expansion underway, the management sounded like DRDO’s favorite child. And yes, they even celebrated Guru Purnima while promising 50% CAGR. Read on — because these guys are planning to arm the nation and their balance sheet.

2. At a Glance

• Revenue ₹225 Cr (+69% QoQ): Apollo’s missiles are faster than their receivables.
• EBITDA ₹59 Cr (+45% QoQ): Even defense needs defense against cost creep.
• EBITDA Margin 26.3%: The Make-in-India markup is alive and well.
• PAT ₹30 Cr (+70% QoQ): Rockets fired, profits followed.
• H1 Revenue ₹359 Cr (+42% YoY): “Explosive” growth—pun fully intended.
• Guidance: 45–50% CAGR till FY27, excluding the freshly acquired explosives business (IDL).
• Order Book: ₹800 Cr and growing—just waiting for bureaucratic lift-off.

3. Management’s Key Commentary

“We’ve delivered our highest-ever revenue and PAT through operational discipline.”
(Translation: we finally got the Army to pay its bills 😏)

“Unit 3 will be fully operational by Q1 FY27—capacity 8x the current setup.”
(Translation: missiles won’t be the only things multiplying here.)

“We’ve acquired 100% of IDL Explosives for ₹107 Cr.”
(Translation: vertical integration… into the blast zone.)

“Expect 45–50% CAGR in revenue over FY26–FY27, excluding IDL.”
(Translation: we’re growing faster than India’s defense budget approvals.)

“We’re evolving from subsystem maker to weapons manufacturer.”
(Translation: same engineers, just louder products.)

“Once Unit 3 testing facility is ready, we’ll be fully self-reliant.”
(Translation: no more begging DRDO to borrow their lab.)

“By Guru Purnima next year, IDL will turn profitable.”
(Translation: divine guidance officially enters the EBITDA model.)

4. Numbers Decoded