Defence Stock Jumps 10% After Announcing 12x Weapons Manufacturing Expansion Plan

Synopsis: A Hyderabad-based defence electronics maker posts its best-ever quarterly profit with a 164% jump, and unveils plans to scale weapon systems manufacturing capacity 12 times.

Shares of smallcap defence player jumped 10% on Monday after the company reported a strong Q4FY26 performance and announced a major greenfield expansion. The defence firm posted its highest-ever quarterly revenue, EBITDA, and profit after tax for the quarter ended March 2026, while unveiling a ₹300 crore investment plan to scale up weapon systems manufacturing capacity 12 times.

With a market cap of Rs. 12,226 Crore, shares Apollo Micro Systems Ltd.. are trading at a price of Rs. 341.25 per share i.e. 9.7% up from its previous closing price of Rs. 311. It made a high of Rs. 357 i.e. approx 14% above its previous closing price. It currently trades at a P/E of 108.

Strong Q4FY26 Performance

Apollo Micro Systems reported a consolidated revenue of ₹293.3 crore in Q4FY26, up 81% year-on-year. This was the highest quarterly revenue the company has ever recorded. EBITDA came in at ₹67.6 crore, a jump of 88% year-on-year, with EBITDA margin expanding to 23%. Profit after tax surged 164% year-on-year to ₹36.8 crore, with PAT margin improving to 13% – up 391 basis points over the same quarter last year.

On a sequential basis too, the company showed strong improvement. Revenue grew 16% over Q3FY26, while EBITDA jumped 34% and PAT rose 61% quarter-on-quarter. The company described Q4FY26 as its highest-ever quarter across all key financial metrics on a consolidated basis.

FY26 Full Year: A Breakthrough Year

For the full year FY26, Apollo Micro Systems reported consolidated revenue of ₹904.3 crore, up 61% over FY25. EBITDA grew 69% to ₹218.2 crore, with EBITDA margin expanding 114 basis points to 24%. PAT nearly doubled, rising 91% to ₹107.4 crore, with PAT margin improving 185 basis points to 12%. ROCE stood at 18.23% in FY26, up sharply from 10% in FY21. The order book stood at ₹1,432 crore as of 31st March 2026.

The management noted that FY26 was a breakthrough year for the company, marking its highest-ever annual revenue and profitability. The company also completed the acquisition of IDL Explosives through its subsidiary Apollo Defence Industries during the year, received a DPIIT licence for UAV manufacture, and secured its first export order.

12x Capacity Expansion Plan

Apollo Micro Systems announced a major greenfield expansion with a total investment of ₹300 crore. The new facility will come up adjacent to its Unit 3 at TSIIC Hardware Park Phase 2 in Hyderabad, spread over approximately 2,47,441 sq ft of land. The plan is to scale operations to 12 times the current capacity.

The facility will support manufacturing, assembly, integration, and testing of a wide range of weapon systems, including Grad rockets, anti-submarine warfare rockets, anti-tank mines, and artillery munitions. The expansion is part of the company’s broader strategy to move up the value chain and become a global OEM in defence systems.

The company also received a government licence to manufacture high-energy defence explosives – HMX at 50 MTPA and TNT at 500 MTPA – valid for 15 years, which will support its captive requirements as munition platforms enter large-scale production.

About the Company

Founded in 1985 and headquartered in Hyderabad, Apollo Micro Systems is a fully integrated defence technology company and Tier-I OEM. It designs, develops, and manufactures advanced weapon systems, sub-systems, and platforms across missiles, naval warfare, and ground defence. With over 700 on-board technologies, the company has been associated with DRDO’s weapon programmes for over 41 years and holds the highest participation in indigenous missile programmes in India.

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