Defence stock Apollo Micro Systems will remain in focus in Monday's trading session after the company reported its financial results for the quarter ending on 30 June, 2026, on 8 August.
The defence stock ended the Friday's session in red, closed 0.43% lower at ₹403 apiece.
Apollo Micro Systems posted a 43% year-on-year increase in net profit to ₹25.2 crore for Q1 FY27, while revenue from operations jumped 88% to ₹251.3 crore. EBITDA rose 18% to ₹48 crore, although the company’s operating margin contracted during the quarter. The defence firm said the performance marked its strongest-ever first quarter, driven by robust execution and sustained demand from the sector.
According to a regulatory filing, revenue from operations surged to ₹251.3 crore in the June quarter, compared with ₹134 crore in the same period last year, representing an 88% year-on-year growth.
EBITDA increased to ₹48 crore from ₹41 crore in Q1 FY26, marking an 18% rise. The company said this was also its highest-ever EBITDA for a June quarter.
However, EBITDA margin fell to 21.4% in Q1 FY27 from 30.6% a year earlier, a decline of 9.2 percentage points.
“The best ever Q1 performance is a strong reflection of our execution, resilience and continued focus on the priorities that matter most. We must build on this momentum with greater vigour and sharper execution, while remaining firmly aligned with the evolving requirements of the defence sector. The opportunity ahead is significant, and we will continue to strengthen our capabilities, deepen our contribution to national defence preparedness, and deliver with greater speed, discipline and purpose," said Baddam Karunakar Reddy, Managing Director, Apollo Micro Systems Limited.
Rising defence expenditure by major economies, including the US, China, India, Russia, the UK and France, is expected to remain a major growth catalyst for the market. Over the forecast period, growth is also likely to be supported by escalating territorial and political conflicts, population growth and rapid urbanisation, increased government spending on infrastructure, and higher construction activity.
At the same time, heightened geopolitical tensions and global trade restrictions have disrupted supply chains, resulting in production delays and shortages of critical explosives.
State-owned defence public sector undertakings also witnessed a 42.8% rise in exports during the financial year, taking the total to ₹8,389 crore. Explosives and ammunition components, particularly those used in artillery, account for a significant share of these exports, with demand for such products remaining strong across Europe.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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