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 thatactuallyexplode. 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 nationandtheir 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
| Metric | Q2 FY26 | Q1 FY26 | QoQ | Comment |
|---|---|---|---|---|
| Revenue (₹ Cr) | 225 | 134 | +69% | Defense spending = cash flow therapy |
| EBITDA (₹ Cr) | 59 | 41 | +45% | Margins surviving product mix wars |
| PAT (₹ Cr) | 30 | 18 | +70% | Firepower meets financials |
| H1 Revenue (₹ Cr) | 359 | 250 (H2 FY25) | +42% | No “peace dividend” here |
| EBITDA Margin | 26.3% | 28% (avg) | Flat | Product mix is the new villain |
| Order Book | ~₹800 Cr | – | – | Pipeline looks like a DRDO wish list |
(Commentary: Even their balance sheet looks armed and dangerous.)
5. Analyst Questions
Q:“What’s the plan for IDL Explosives?”A:“Backward and forward integration. We’ll blow things up profitably.”
Q:“When will receivables come down?”A:“By Q4—once defense payments stop crawling.”
Q:“Impact of foreign OEMs setting up shop?”A:“No problem, sir. They’ll bring more toys, we’ll build more parts.”
Q:“When does MIGM ₹4,000 Cr order come?”A:“AON approval pending—hope floats between March and Q1.”
Q:“Capex for Unit 3?”A:“₹250 Cr. Because missiles don’t assemble themselves.”
6. Guidance & Outlook
Apollo’s outlook sounds like a Bollywood war montage — high-octane and borderline patriotic. Management expects45–50% revenue CAGRfor two years, without counting IDL’s contribution (which they swear will be a turnaround story by FY27).
Key drivers:
- Unit 3
