Defence Stock Jumps 4.8% After Agreement to Acquire 40% Stake in Premier Explosives for ₹1,550 Cr

Synopsis: The defence stock jumped 5 percent after it announced the acquisition of a 41.33 percent promoter’s stake in Premier Explosives for around Rs 1,550 crore.

The shares of this company, which supplies hardware, avionics, and underwater warfare electronics to the DRDO, Ministry of Defence, and the Armed Forces, gained investor traction after a strategic acquisition.

With a market capitalization of Rs 15,347 crore, Apollo Micro Systems Ltd’s share on Friday made a day high of Rs 417.90 per share, up by 4.84 percent from its previous day’s close price of Rs 398.60 per share. The share of the company gave a return of 118 percent in the last year.

On the other hand, the target company Premier Explosives Ltd has a market capitalization of Rs 3,741crore, with the share trading at Rs 696 per share, down 2.64 percent from its previous close.

Acquisition Details

Apollo Micro Systems Limited has entered into a definitive share purchase agreement to acquire a 41.33 percent promoter’s stake in Premier Explosives Limited for approximately Rs 1,550 crore through an all-cash transaction. The deal is expected to close in the third quarter (December) of 2026, subject to regulatory approvals, shareholder approval, and other customary closing conditions.

Under the agreement, Premier Explosives Limited will come under the umbrella of Apollo Micro Systems Limited and will continue to operate under its existing brand. The transaction is subject to customary closing adjustments.

Strategic Rationale

The acquisition brings together the complementary strengths of Apollo Micro Systems and Premier Explosives in defence systems and energetic materials. The company said the transaction is expected to improve operational efficiencies, strengthen research and development capabilities, and increase participation in defence and space-related programmes.

Commenting on the acquisition, Baddam Karunakar Reddy, Managing Director of Apollo Micro Systems, said the deal will strengthen India’s defence manufacturing capabilities and deepen expertise in energetic materials and space programmes. He added that the combined entity will be better positioned to support national security with greater scale, resilience, and technological self-reliance.

Dr. A. N. Gupta, Founder and Chairman of Premier Explosives, said the acquisition reflects the shared vision of building a stronger and more integrated indigenous defence and aerospace ecosystem. Meanwhile, Shonika Prasad, Trustee and Promoter on behalf of AKS Family Trust, said Apollo Micro Systems is well placed to lead Premier Explosives into its next phase of growth while advancing innovation and strengthening India’s defence and aerospace capabilities.

About the Company

Apollo Micro Systems Limited, a 41-year-old pioneer in defence technology, specializes in the design, development, and manufacture of advanced electronic, electro-mechanical, and engineering systems. With multi-domain, multidisciplinary capabilities and robust infrastructure, the company is equipped to build cutting-edge defence technologies and produce them at scale for national strategic needs.

Financial Highlight: Revenue from operations of Rs 293 crore, compared to Rs 162 crore in Q4 FY25, marking an 81 percent YoY increase. Its operating margin improved to 23 percent from 22 percent a year earlier. Net profit rose to Rs 37 crore from Rs 14 crore, registering a 164 percent YoY growth, while earnings per share (EPS) increased to Rs 1.05 from Rs 0.46, reflecting a 128 percent YoY rise.

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