1. At a Glance

Apollo Micro Systems isn’t building mobile apps or AI chatbots — it’s buildingmissile subsystems, unmanned vehicles, and electronics for India’s defence. But with aP/E of 93, you’d think it was selling NFTs to venture capitalists. This Hyderabad-based tech-defence hybrid just postedQ1 FY26 revenue up 46%and PAT up 126%, with a ₹735 crore order book that’s bigger than its FY25 revenue by over 20%. The promoters own just over 50% (and have pledged 38.6% of that), foreign investors are sniffing around, and the market has sent the stock up78% in a year.

2. Introduction

If HAL and BEL are the big old warhorses of India’s defence manufacturing, Apollo Micro Systems is the tech-savvy younger cousin — the one who shows up to the family reunion with a drone prototype and a missile guidance chip. Founded as a specialist indesign, development, assembly, and testingof electronic and electro-mechanical systems, Apollo has quietly embedded itself into over150 indigenous programmesand60 Defence Capital Procurement Programmes.

The company’s products are hiding in plain sight across aerospace systems, space vehicles, naval combat platforms, homeland security systems, and even in transportation tech. With marquee clients likeDRDO, the Indian Army & Navy, DPSUs, Adani, and L&T, Apollo isn’t chasing orders — it’s handpicked for the most sensitive ones.

FY25 was big. FY26 could be bigger — thanks to two massive new facilities, a ₹210 crore integrated missile & unmanned systems plant, and fresh capital injections north of ₹1,000 crore between warrants and preferential allotments. The growth runway is long — and the valuation is running faster.

3. Business Model (WTF Do They Even Do?)

Core Services:

• Electronic Manufacturing Services (EMS)
• PCB fabrication & assembly
• Embedded software & hardware design
• Concept-to-product defence electronics
• Host interface & custom-built systems

Defence & Strategic Focus:

• 700+