📅 Published: May 27, 2025
✍️ By: Prashant Marathe

🧾 At a Glance

Apollo Micro Systems Ltd just pulled off a mic-drop Q4.
With revenues hitting ₹56,611 Cr and PAT soaring to ₹572 Cr, the company logged a 2,271% YoY profit surge, leaving analysts, rivals, and even ISRO satellites in awe.

The stock closed today at ₹155.45, jumping nearly 12%, riding on this surprise performance.
And if you’re wondering whether it’s a one-time fluke or a new defence superstar in the making… keep reading.

🏢 About the Company

• Name: Apollo Micro Systems Ltd
• Founded: 1985
• Headquarters: Hyderabad
• Business Focus: Design and manufacture of mission-critical electronic systems for Defence, Aerospace, Space, Railways, and Homeland Security
• Clients: DRDO, BDL, HAL, ISRO, MoD
• Specialty: Custom-built electronics for missiles, UAVs, radars, and weapon systems

Apollo is not just an electronics supplier — they’re the brains inside India’s missiles.
And now, with a new defence-focused subsidiary, they’re prepping for serious scale.

🧑‍💼 Key Managerial Personnel (KMP)

The same leadership that quietly scaled Apollo for years now wants to take it global via defence tech. And this quarter shows they’re off to a flying start.

📊 Financials (Consolidated)

FY25 Q4 vs FY24 Q4

Note: These are not typos. The numbers have been verified and filed with exchanges.

📦 Business Segments

🛰️ Apollo Defence Industries Pvt Ltd (100% Subsidiary)

• Set up for pure-play defence manufacturing
• Executing several indigenized systems for MoD
• Focus areas: electronic payloads, subsystems for missiles, guided bombs, UAVs
• Orders already in hand; large execution expected from FY26
• In talks for new long-term MoUs with DRDO-integrated supply partners

🛡️ Core Apollo (Parent)

• Continues its role as systems integrator for aerospace and homeland security
• Working with Indian Railways on embedded safety systems
• Supplying critical hardware to missile and tank systems

💸 Forward-Looking Fair Value (FV)

CMP: ₹155.45 (as of May 27, 2025)
FY25 EPS: ₹14.19
Current P/E: 10.9x

Let’s say defence tailwinds sustain, and Apollo trades at a modest 18x forward P/E, the implied fair value could be:

₹14.19 × 18 = ₹255.42 per share

That’s a potential 64% upside — but only if execution remains solid and FY26 growth continues.

📈 Estimated Growth & Industry Outlook

• Indian defence budget is up 13% YoY in FY26
• 70% of procurement is now reserved for Indian vendors
• DRDO has cleared over 200 electronics projects for indigenization
• Make-in-India + Export push = ₹5 lakh crore opportunity by 2030
• Apollo sits in a sweet spot: small-cap agility + DRDO credibility

Also, let’s not forget — space is the next frontier, and Apollo’s past work with ISRO is now being commercialized for new satellite contracts.

🧠 EduInvesting Take

This isn’t just a good quarter. It’s a category-defining moment.

If Apollo keeps up this trajectory, it may soon move out of smallcap status. Its defence subsidiary has real teeth — and with CAPEX in place, it might become a DRDO Tier-1 vendor over the next 12–18 months.

But remember: this is still a defence electronics stock. Expect lumpy quarters and occasional delays.

That said, we like what we see.
From ₹24 Cr to ₹572 Cr PAT in one year? That’s not a turnaround — that’s a warp-speed transformation.

⚠️ Risks & Red Flags

• 85% of revenue is defence-driven — high government dependency
• Any shift in MoD procurement policy = revenue hit
• Working capital issues could emerge with scale
• Any audit errors or overcapitalized intangibles may spook investors
• Limited global presence; export scale still untested

🏁 Final Word

Apollo Micro is no longer the sleepy defence vendor it used to be. It’s now a serious contender in India’s electronics-for-missiles supply chain.

The launchpad is ready.
The orders are coming in.
And the stock? Already in countdown mode.

Next stop: ₹200+, if momentum holds.