🚀 At a glance:
Apollo Micro Systems has reported stellar numbers for FY25 with:
- 💰 Revenue: ₹5,620.69 Cr (Up 51% YoY)
- 💹 Net Profit: ₹572.41 Cr (Up 81% YoY)
- 💾 EPS: ₹1.89 (vs ₹1.27 LY)
Impressive, yes. But at a CMP of ₹187.68, the stock already reflects Elon Musk-level optimism. So, is it still a buy, or have retail investors already boarded the rocket too late?
📦 Business Snapshot
| Parameter | Details |
|---|---|
| Name | Apollo Micro Systems Ltd |
| NSE Symbol | APOLLO |
| Industry | Defence Electronics & Embedded Systems |
| Market Cap | ~₹5,700 Cr |
| CMP (31 May 2025) | ₹187.68 |
| Face Value | ₹1 |
| Promoters | 58.49% holding |
| Major Clients | DRDO, ISRO, BEL, HAL, Railways, PSUs |
📊 FY25 vs FY24 – Standalone Highlights
| Metric | FY25 | FY24 | Growth |
|---|---|---|---|
| Revenue from Ops | ₹5,620.69 Cr | ₹3,716.34 Cr | 🔼 51% |
| Total Income | ₹5,661.18 Cr | ₹3,742.68 Cr | 🔼 51% |
| EBITDA Margin (Est.) | ~20% | ~17% | ✅ Improved |
| Profit Before Tax | ₹838.04 Cr | ₹448.99 Cr | 🔼 87% |
| Net Profit | ₹572.41 Cr | ₹316.69 Cr | 🔼 81% |
| EPS | ₹1.89 | ₹1.27 | 🔼 49% |
🚨 Unmodified audit report confirms there’s no accounting jugaad — these numbers are real.
🧠 EduInvesting Take
This company’s financial trajectory feels like they plugged in ISRO-grade turbo boosters:
- They added ₹1,900+ Cr in incremental revenue
- Doubled profits
- Boosted free cash flow after burning in FY24
But the stock is already priced like a Chandrayaan-4 payload. So while the business is winning, here’s our breakdown:
🏗️ Balance Sheet Flex
| Parameter | FY25 | FY24 |
|---|---|---|
| Total Assets | ₹12,622 Cr | ₹9,549 Cr |
| Net Worth | ₹6,086 Cr | ₹5,194 Cr |
| Total Liabilities | ₹6,536 Cr | ₹4,356 Cr |
| Debt | ₹2,525 Cr | ₹1,966 Cr |
| Cash & Equiv | ₹21.58 Cr | ₹18.65 Cr |
They’ve added ₹3,000+ Cr in assets, and while borrowings increased, interest cost is under control (just 6% of revenue). That’s a green flag.
📉 Cash Flow Summary (Standalone)
| Metric | FY25 | FY24 |
|---|---|---|
| Cash from Ops | ₹118.26 Cr | ₹(803.01) Cr |
| Cash from Investing | ₹(984.49) Cr | ₹(571.94) Cr |
| Cash from Financing | ₹866.52 Cr | ₹1,375.42 Cr |
| Ending Cash | ₹21.58 Cr | ₹18.65 Cr |
So they fixed the working capital trap of FY24 and ended FY25 with positive cash generation. Finally, their finances are catching up with their defence ambitions.
🛰️ Growth Catalysts
✅ Growing defence spend
✅ Large order books from ISRO, DRDO, Railways
✅ ₹50 Cr corporate guarantee to subsidiary shows confidence in internal ecosystem
✅ Appointed cost, internal, and secretarial auditors for FY26–30 — signalling scale planning
🧨 But What’s the Catch?
- 📉 Stock already up 70%+ in 12 months
- 📈 Valuation stretched — trailing P/E ~99
- 🧮 Book value ~₹20 — trading 9x book
- 😰 Cash conversion still volatile
📉 EduInvesting Verdict
Apollo Micro’s results are solid. Margin expansion, revenue growth, and finally — positive cash flow.
But the stock’s already partying like it won a DRDO contract to build Iron Man suits.
Would we chase this?
Not until the price cools or a game-changing contract lands.
This isn’t a micro-cap anymore. It’s a macro expectation packed into a ₹1 face value.
Author: Prashant Marathe
Date: 31 May 2025
Tags: Apollo Micro Systems, FY25 Results, Defence Stocks, ISRO Supplier, Embedded Systems, EduInvesting
